ArcelorMittal Nippon Steel to boost automotive grade steel production -

ArcelorMittal Nippon Steel India (AM/NS India) is poised to revolutionize the Indian automotive steel industry with a significant expansion at its Hazira plant. By March 2025, the company plans to commission a new production capacity of 2 million tonnes specifically for advanced automotive steel products. This initiative is directly aligned with the Indian government’s ‘AtmaNirbhar Bharat’ initiative, aiming to reduce reliance on steel imports and bolster domestic production. AM/NS India has committed a substantial investment of Rs 85 billion towards this new product line, which underscores its dedication to meeting the evolving needs of the automotive sector.

Currently, the automobile industry in India relies heavily on imports, with an estimated 15% of its annual consumption of 8 million tonnes sourced from overseas. The introduction of these new production lines is expected to significantly curb this dependency, allowing domestic manufacturers to fulfill their steel requirements locally. The expansion will feature two new state-of-the-art units: a Continuous Galvanizing Line and a Continuous Galvanizing and Annealing Line. These facilities will leverage advanced technical expertise from global leaders ArcelorMittal and Nippon Steel, ensuring that the products meet the highest quality standards.

Strengthening Domestic Capabilities

AM/NS India’s strategic move to expand its production capacity comes at a time when the demand for high-quality automotive steel in India is on the rise. The current market demand stands at approximately 7.8 million tonnes annually, with projections indicating a growth rate of 7% each year. Ranjan Dhar, Director and Vice-President of Sales and Marketing at AM/NS India, highlighted the importance of this expansion, stating that the company has already successfully supplied 1.2 million tonnes of auto-grade steel. With the new production lines, AM/NS India aims to capture an impressive 30-35% market share in the auto-grade steel sector, further solidifying its position as a market leader.

The new production lines will manufacture licensed products with strength levels reaching up to 1180 MPa, both in coated and uncoated forms. This level of quality will cater to the stringent requirements of the automotive industry, allowing manufacturers to enhance their vehicle performance and safety. Additionally, AM/NS India’s previous successes with its Optigal and Magnelis products have positioned the company favorably in the market, paving the way for this new venture. The commitment to advancing local manufacturing capabilities aligns perfectly with national goals for self-reliance in critical industries.

Future Plans and Innovations

The expansion at Hazira is just one part of AM/NS India’s ambitious growth strategy. The company has also announced plans to increase its overall crude steel production capacity from the current 9 million tonnes to 15 million tonnes per annum by 2026. This extensive expansion will involve an investment of over Rs 600 billion, a testament to AM/NS India’s commitment to not only meet current demands but to anticipate future market needs.

Moreover, AM/NS India is actively showcasing its automotive innovations at the ongoing Bharat Mobility Global Expo. Among these innovations is ArcelorMittal’s Multi Part Integration (MPI) solutions, which promise cost efficiencies and reduced manufacturing costs. The integration of these solutions into the automotive design process could lead to significant improvements in production and performance across various automotive applications. As the company continues to innovate and expand, it remains dedicated to supporting the growth of India’s automotive sector while reducing dependency on imports.

Conclusion

As AM/NS India prepares for its upcoming expansion, the implications for the automotive steel market are profound. The move towards self-sufficiency in steel production is a pivotal step for the industry.