ArcelorMittal Nippon Steel (AM/NS) India has commissioned a new Continuous Galvanising Line (CGL) at its Hazira facility to produce advanced high-strength steel for the automotive sector. The new unit raises the company's downstream steel capacity by 0.5 million tonnes per annum (MTPA) to 3.3 MTPA, with plans to reach 5 MTPA by year-end through two more lines.

The company had committed an investment of Rs 85 billion in five galvanising lines at Hazira, of which around 85 per cent has already been utilised.

AM/NS India stated that its new high-strength galvanised steel will replace imports, with nearly all major automobile manufacturers expressing interest. Currently, the automotive industry requires 8–9 MTPA of steel, with 15 per cent imported. The firm aims to eliminate this reliance through locally produced, patented offerings from parent companies ArcelorMittal and Nippon Steel.

The new facility incorporates cutting-edge technology and supports the company’s plan to introduce the full range of patented products. At present, value-added products contribute 60 per cent to AM/NS India’s total sales.

The company will also launch a dedicated high-end product line to meet rising demand in the utensils segment.

Dilip Oommen, CEO of AM/NS India, said the plant will deliver steel of international quality, enabling auto manufacturers to reduce freight costs, avoid currency risks, and manage just-in-time inventories, bringing significant cost savings.

AM/NS India intends to expand its total production capacity from 9 MTPA to 15 MTPA, with a long-term goal of 24 MTPA at Hazira. Separately, the company has initiated land acquisition in Andhra Pradesh for a new integrated steel plant and is also pursuing similar plans in Odisha, where it already has a strong presence.