With an eye on stepping up the value-added play, ArcelorMittal Nippon Steel India (AM/NS India) has invested nearly Rs 1,000 crore in setting up a production line for Magnelis, a global product from ArcelorMittal’s portfolio.
The production line has a capacity of 5,00,000 tonnes per annum and has been set up at AM/NS India’s plant at Hazira in Gujarat.
According to the joint venture between global steelmakers, ArcelorMittal and Nippon Steel, Magnelis’ “corrosion resistance and self-healing” properties make it ideal for use in solar projects. With this, AM/NS hopes to capture more than 50 per cent of the domestic market share for steel supplies to solar projects.
Previously, this high-end value-added steel was imported mainly from Korea, Japan, and China, often taking months for delivery, it added.
Apart from solar projects, other end-use sectors include road infrastructure (crash barriers), agricultural infrastructure (grain silos, farm equipment), and construction (pre-engineered building structures).
A focus on value-added products has been a key priority for major domestic steel companies.
Ranjan Dhar, director and vice president of sales and marketing, AM/NS India, said about 60-65 per cent of the joint venture’s portfolio was focused on value-added products. “Even as we expand, the share will remain the same.”
AM/NS India is investing Rs 60,000 crore in expanding capacity from 9 million tonnes to 15 million tonnes. The expansion is expected to be completed by early 2026.
On the value-added front, AM/NS India will also introduce a 2 million tonne auto-focused cold rolling mill at Hazira next year.
Dhar said the focus on value-added products was not just about margins. “We want to bring in high-end products because the demand pattern in India is shifting fast, whether it’s automobiles or white goods. We need steel products that are globally benchmarked.”
He also said that AM/NS was constantly in discussion with stakeholders in the market for inputs. “The entire gamut of products is available in ArcelorMittal and Nippon Steel. We are drawing from there according to India’s requirements.”
In a statement on the launch of Magnelis, Dilip Oommen, CEO, AM/NS India, said it fulfils the nation’s growing demand for high-performance steel while contributing to the vision of Atmanirbhar Bharat.
First Published: Sep 18 2024 | 5:31 PM IST
