ArcelorMittal-Nippon Steel Joint Venture Initiated Feasibility Study for 12-Mtpa Steel Plant

SEATTLE (Scrap Monster): AM/NS India- the joint venture between ArcelorMittal and Nippon Steel announced that it has initiated a feasibility study in collaboration with the Odisha state government on the proposed 12 million tonne per annum (Mtpa) integrated steel project in the Kendrapara district of the state.

It must be noted that the Memorandum of Understanding (MoU) for setting up the steel plant was signed during March this year. The joint venture project by the steel majors intends to set up the greenfield plant at an investment of around INR 50,000 crore. This is expected to boost steel production in the country, create hundreds of well-paying jobs in the region and deliver significantly to the state as well as national economy.

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In an investor presentation, the company noted that it has initiated a feasibility study, securing relevant permissions, land acquisition, developing logistics infrastructure and other enabling conditions to prepare for the construction works.

AM/NS India announced plans to reorganize its steel shop and rolling parts operations to achieve capacity of 8.6 Mt. Also, it aims to grow the capacity of its Hazira, Gujarat plant to 14 Mt in the near-term. Additionally, the 6 Mt capacity pellet plant in Paradip, Orissa is set to start functioning very shortly.

AM/NS India had delivered strong performance, reporting $403 million in EBITDA during the initial quarter of 2021.