(Reuters) – ArcelorMittal Nippon Steel India said on Friday it would acquire land in the southern state of Andhra Pradesh to set up an integrated steel plant, as part of its plan to expand its footprint in the country.
The initial payment for the land has been made, with possession expected soon, it said in a statement.
The greenfield project, the company said, has a proposed initial capacity of 7.3 million tonnes per annum.
The announcement comes amid India’s push to boost domestic manufacturing. The country has set a target of achieving 300 MTPA crude steel capacity by 2030.
ArcelorMittal Nippon Steel India — a 60-40 joint venture between Luxembourg-based ArcelorMittal and Japan’s Nippon Steel — also said capacity expansion at its flagship Hazira plant in Gujarat to 15 MTPA from 9 MTPA is progressing well, and it plans to set up another integrated steel plant in Odisha.
However, concerns are looming over India’s recent import restrictions on low-ash metallurgical coke, or met coke, a key raw material for steel production.
Earlier this month, Reuters reported that ArcelorMittal’s India joint venture had warned it might have to severely curtail steelmaking in the country and delay its expansion plans due to New Delhi’s import restrictions.
(Reporting by Ashna Teresa Britto in Bengaluru; Editing by Shilpi Majumdar)
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