SEATTLE (Scrap Monster): Nippon Steel announced its decision to add two blast furnaces at its joint venture project with ArcelorMittal. This is part of the company’s $7.4 billion expansion drive, aimed at more than tripling its capacity. The investment will be financed with cash in hand and loans.
According to the company, a total $5.02 billion will be spent on constructing two blast furnaces at the flagship Hazira steel mill facility in the state of Gujarat. The facility currently runs a blast furnace with crude steel output capacity of 9 million metric tons per year. The addition of the twin blast furnaces will boost the annual steel production volumes from the facility to around 15 million tons. The first of the two furnaces is expected to be online by late 2025, while the second one will start operations in early-2026.
The joint venture project plans to install basic oxygen furnaces and coke furnaces, which will help it to better serve the automotive industry with high-grade steel, in addition to delivering increased profitability.
The investment in India will lift Nippon Steel’s global steelmaking capacity to around 70 million metric tons a year. The company anticipates dramatic rise in steel demand in India over the coming years.