ArcelorMittal Nippon Steel India will add a new 2 million tonne cold rolling mill and an upstream hot strip machine, aiming speciality steel grades at its flagship facility in Hazira, Gujarat.
The company is introducing a new automobile line, and the factory is now under development, according to Ranjan Dhar, Director and VP, Sales and Marketing. The company is presently expanding, with an expected expenditure of Rs 60,000 crore, and its goal is to reach 15 MTPA from the current 9 MTPA. All of the specialty steel kinds that both companies provide globally will be produced at the new cold rolling facility, which is specifically built for autos.
This action is being taken in response to an increase in demand for high-performance steel, which accounts for over 60 per cent of the body structure of modern automobiles in India’s auto industry. Taking advantage of this trend, the company is expanding to provide car makers with a domestic source of advanced steel materials.
The company can presently manufacture roughly 20 million pellets and 9 million tonnes of crude steel annually. The company’s share in the passenger vehicle segment is currently between 7 and 8 per cent, and it plans to grow considerably during the next five years.
Speaking at the opening session of the 10th Vibrant Gujarat Summit in January, ArcelorMittal Executive Chairman, Lakshmi Mittal, stated that the first phase of the Hazira expansion facility is expected to be completed by 2026. It will undergo several rounds of additional expansion to become a 24 MTPA steel factory. By 2029, the second phase will be finished.
According to Dhar, ArcelorMittal is already collaborating with automakers to create innovative electric vehicles for the Indian and international markets. This becomes more significant in light of the fact that some types of electrical steel are unavailable in India.
Dhar stated that the demand for passenger and commercial vehicles (CV) in India has been rising, placing his bet on the country’s economic success. Despite the fact that CV demand is more cyclical in nature and is currently down slightly, Dhar believes this is just a passing trend, with numbers projected to rise sharply in the second part of this year. In addition, he said, the company is selectively introducing some of the specialty items utilised globally by the automotive industry for both internal combustion engine (ICE) and electric vehicle (EV) applications.
