AM/NS invests Rs 1,000 cr in new Gujarat production line
ECONOMY & POLICY

AM/NS invests Rs 1,000 cr in new Gujarat production line

ArcelorMittal Nippon Steel India (AM/NS India) has announced a substantial investment of nearly Rs 1,000 crore to establish a production line for Magnelis at its plant in Gujarat. This initiative aims to secure over 50% of the domestic market share for steel supplies in solar projects.

Beyond solar applications, Magnelis will also serve various sectors, including road infrastructure (crash barriers), agricultural infrastructure (grain silos, farm equipment), and construction (pre-engineered building structures). Magnelis is characterized as a flat carbon steel coated with a zinc-aluminium-magnesium alloy on both sides.

Located at AM/NS India’s Hazira plant, the new production line boasts an annual capacity of 500,000 tonnes. The corrosion-resistant and self-healing properties of Magnelis make it particularly suited for solar projects, according to the joint venture between ArcelorMittal and Nippon Steel.

AM/NS India is already in advanced negotiations to supply Magnelis to major players in India’s renewable energy and infrastructure sectors, including Adani Green Energy, Reliance Industries, and NTPC. Previously, this premium steel product was primarily imported from countries such as Korea, Japan, and China, often resulting in lengthy delivery times.

India ranks as the world’s second-largest crude steel producer but became a net importer of steel in FY24. Major domestic steel companies are increasingly prioritizing value-added products. Ranjan Dhar, director and vice president of sales and marketing at AM/NS India, noted that 60-65% of the joint venture’s portfolio is focused on value-added products, and this focus will remain consistent even as the company expands.

AM/NS India is committing Rs 60,000 crore to increase its production capacity from 9 million tonnes (mt) to 15 mt, with completion expected by early 2026. Additionally, the company plans to introduce a 2 mt auto-focused cold rolling mill at Hazira next year.

Dhar emphasized that the push for value-added products is driven not only by profit margins but also by the rapidly changing demand patterns in India, especially in sectors like automobiles and consumer goods. He reiterated that AM/NS is continuously engaging with market stakeholders to align their offerings with India's requirements.

In a statement regarding the Magnelis launch, CEO Dilip Oommen highlighted that this product meets the increasing demand for high-performance steel while aligning with the vision of Atmanirbhar Bharat.

ArcelorMittal Nippon Steel India (AM/NS India) has announced a substantial investment of nearly Rs 1,000 crore to establish a production line for Magnelis at its plant in Gujarat. This initiative aims to secure over 50% of the domestic market share for steel supplies in solar projects. Beyond solar applications, Magnelis will also serve various sectors, including road infrastructure (crash barriers), agricultural infrastructure (grain silos, farm equipment), and construction (pre-engineered building structures). Magnelis is characterized as a flat carbon steel coated with a zinc-aluminium-magnesium alloy on both sides. Located at AM/NS India’s Hazira plant, the new production line boasts an annual capacity of 500,000 tonnes. The corrosion-resistant and self-healing properties of Magnelis make it particularly suited for solar projects, according to the joint venture between ArcelorMittal and Nippon Steel. AM/NS India is already in advanced negotiations to supply Magnelis to major players in India’s renewable energy and infrastructure sectors, including Adani Green Energy, Reliance Industries, and NTPC. Previously, this premium steel product was primarily imported from countries such as Korea, Japan, and China, often resulting in lengthy delivery times. India ranks as the world’s second-largest crude steel producer but became a net importer of steel in FY24. Major domestic steel companies are increasingly prioritizing value-added products. Ranjan Dhar, director and vice president of sales and marketing at AM/NS India, noted that 60-65% of the joint venture’s portfolio is focused on value-added products, and this focus will remain consistent even as the company expands. AM/NS India is committing Rs 60,000 crore to increase its production capacity from 9 million tonnes (mt) to 15 mt, with completion expected by early 2026. Additionally, the company plans to introduce a 2 mt auto-focused cold rolling mill at Hazira next year. Dhar emphasized that the push for value-added products is driven not only by profit margins but also by the rapidly changing demand patterns in India, especially in sectors like automobiles and consumer goods. He reiterated that AM/NS is continuously engaging with market stakeholders to align their offerings with India's requirements. In a statement regarding the Magnelis launch, CEO Dilip Oommen highlighted that this product meets the increasing demand for high-performance steel while aligning with the vision of Atmanirbhar Bharat.

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