Nippon Steel and ArcelorMittal jointly bought India's bankrupt Essar Steel in 2019, now called AM/NS India, and have been considering expanding the venture.
Nippon Steel Corp plans to almost double crude steel output capacity at its India's Hazira plant to secure more of the growing market, an executive said. The expansion plan comes despite growing concerns about a slowdown in the global economy amid rising interest rates and weaker demand in top buyer China.
"We are accelerating investment in India," Takahiro Mori, Executive Vice President at Nippon Steel. "In terms of steel, India is regarded as the only market that will grow significantly." In 2019, Nippon Steel and ArcelorMittal jointly bought India's bankrupt Essar Steel, now called AM/NS India, and have been considering expanding the venture.
"Our main purpose is to grab growing local demand," he said, adding that Nippon Steel would consider further expanding Hazira and building a new steelmill in eastern India. AM/NS India said it would buy some infrastructure assets from Essar Group for $2.4 billion to strengthen its steel business. "The acquisition will give higher flexibility for AM/NS to expand operations," Mori said.
