ArcelorMittal Nippon Steel India Ltd (AM/NS) signed an agreement with the provincial government of Odisha in eastern India to build a US $6.88 billion steel mill.
The proposed plant is a joint venture between ArcelorMittal and Nippon Steel, and will have a production capacity of 12 million tons per year.
ArcelorMittal had to drop its original plan for a 12 million ton per annum steel plant after the company failed to acquire the required land and the necessary permissions for an iron ore mine, VCCircle reported.
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ArcelorMittal Nippon Steel expands
The steelmaker is one of the largest in the world, combining the might of the LN Mittal Group and the technological prowess of Japanese company Nippon Steel.
ArcelorMittal has recently hit some rough times.
In 2020, as a result of the COVID-19 pandemic, its sales went down by 24.6% to US $53.3 billion as compared to US $70.6 billion in 2019. For 2020, the company reported a net loss of US $733 million. Meanwhile, it tallied net income of US $2,454 million in 2019.
In Q4 2020, however, ArcelorMittal posted US $1,207 million net income. The steelmaker posted a net loss of US $1,882 million in the year-ago quarter.
In fact, during that time, the son of steel baron Lakshmi Mittal, Aditya Mittal, the company’s CFO, got the nod to be the next CEO.
Building on other ventures
ArcelorMittal already owns and operates Gujarat-based AM/NS India, again a joint venture with Japan’s Nippon Steel. ArcelorMittal holds a 60% stake in AM/NS India, while the rest is with Nippon Steel.
The plant in Odisha will benefit from ongoing infrastructure developments in the province. Developments include the expansion of the Paradip port, the new Mahanadi port, key freight and passenger rail corridors, and construction of highways.
AM/NS India is also a leading integrated flat carbon steel producer in India. The operation makes a diversified range of flat steel products, including value-added steel.
In fact, in January 2021, AM/NS India announced a pact with POSCO Maharashtra Steel, a subsidiary of the South Korean steel giant POSCO, under which the former will supply hot rolled coils.
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