Lakshmi Mittal-controlled ArcelorMittal, the world’s largest steelmaker, is set to expand its steel footprint in India with expansion of Hazira plant, construction of new capacities in Odisha and takeovers of NMDC's steel plant and Indian Steel Corporation (ISC).
The company along with joint venture partner Nippon Steel is investing ₹60,000 crore to expand its steelmaking capacity in Hazira to 15 million tonne (MT) a year from 9MT. The investment is also for installation of new steel making technologies and machineries and increasing product mix. Captive renewable energy capacities will also be built there for the production of green steel at the plant.
The Odisha state government has recently approved the proposal of ArcelorMittal Nippon Steel (AMNS) India Ltd to set up a 7MT steel plant in Jagatsinghpur district. The company will be investing ₹38,000 crore initially for the project. This project is expected to generate employment for 11,000 people.
ArcelorMittal India and JSW Steel are in fray to buy the steel plant of mining major National Mineral Development Corporation (NMDC) in Chhattisgarh. The 3MT plant is expected to cost over ₹20,000 crore. The company has also been negotiating to take over the bankrupt firm ISC. But the process has not yet completed.
AMNS acquired Essar Steel's plant in Hazira in 2019 for ₹42,000 crore through bankruptcy process. Later, group firm AM Mining India acquired another bankrupt company Uttam Galva Steel for around ₹3,500 crore.
AMNS posted a 62.75% fall in earnings before interest, tax, depreciation and amortisation (EBITDA) at $162 million in the December quarter due to lower shipments and selling prices. The duties on steel exports had also affected the business.
At the petroleum front, Mittal Energy Ltd in joint venture with HPCL is looking to set up a 1.2 MT petrochemical complex at a cost of ₹24,000 crore. The joint venture firm owns 11 MT Guru Gobind Singh Refinery at Bathinda. It was built for $4 billion in 2012. The partners have a 48% stake each in the JV.