$7.4 billion to be invested by AMNS India for capacity expansion

According to the company's announcement, AMNS India intends to invest $7.4 billion in capacity expansion, value-added capability growth, and improvements to its iron ore production capabilities. At its factory in Hazira, AMNS India, a joint venture between the two largest steel producers in the world, ArcelorMittal and Nippon Steel, can presently manufacture 9 million tonnes of steel annually. With its expenditures, the Hazira plant's upstream capacity will be increased to 15 million tonne by the beginning of 2026. In order to finance this development, AMNS Luxembourg Holding, the parent company of AMNS India, recently signed a $5 billion credit arrangement with a group of Japanese banks. To meet the rising demand from autos, AMNS India would also invest $1 billion for downstream facilities at its factory in Hazira, Gujarat. In a post-quarterly results update to investors, the business revealed that it is also constructing slurry pipelines to link its mines to its beneficiation facilities in Thakurani and Sagasahi as well as the beneficiation of ore in Odisha. The company's crude steel production during the March quarter increased by over 9% sequentially to 1.76 million tonnes, while quarterly shipments increased by 15% to 1.83 million tonnes. Both output and sales increased year over year, with production up by 2% and sales approximately 6%, respectively. With the aid of higher sales volumes, better steel prices, and lower costs, particularly energy costs, AMNS India's earnings before interest, tax, depreciation, and amortisation more than doubled to $341 million in the March quarter from the $162 million it made in the December quarter. However, due to this year's reduced steel prices, the operating profit was lower than it was previous year. ArcelorMittal stated earlier this year that it anticipates strong sales in India in 2023, with an apparent increase in steel consumption of between 6 and 8%. The business anticipates a 1-2% increase in global demand in 2023, excluding China. ArcelorMittal and the Greenko Group have a strategic cooperation to create a 975 mw renewable energy plant in India for an investment of $600 million.