ArcelorMittal Nippon Steel India aims to make the newly acquired Essar Steel the finest steel manufacturer in India, with an initial investment of Rs. 8,000 crore. Earlier this week, the ArcelorMittal and Nippon Steel combine paid Rs. 42,000 crores to clear the Essar Steel loan default of Rs. 49,000 crores and acquired the company through a two-year-long, insolvency-driven process.
Aditya Mittal, President and CFO, ArcelorMittal, and Chairman, AM/NS India, told the employees that the company has a bold and confident plan to invest, support and grow this company to become the finest steel manufacturer in India. “We are committed to investing in the business so that it is not just the finest, but it also plays a pivotal role in developing the Indian steel industry,” he said. The industrial strategy for India includes an initial investment of more than Rs. 8,000 crores to improve existing operations, efficiency, technology, product quality, and profitability.
The company is also committed to growing the business further, reaching shipments to 8.5 million tonnes with a long-term aspiration of 12-15 million tonnes.
“We have production bases and businesses all over the world including India. Now we are happy to pursue new opportunities in India with you. I would like to applaud the dedicated efforts you have been making in the most recent difficult period,” Eiji Hashimoto, President, Nippon Steel, told employees.
The Indian economy has been enjoying remarkable growth and its steel production is already the second-largest in the world. Steel demand in India is expected to grow further at a rapid pace, taking into consideration that its steel consumption per capita still remains low by world standards, said Hashimoto.
