ArcelorMittal, Nippon Steel Form Joint Venture AM/NS India

“The acquisition of Essar Steel is an important strategic step for ArcelorMittal. India has long been identified as an attractive market for our company and we have been looking at suitable opportunities to build a meaningful production presence in the country for over a decade,” commented Lakshmi Mittal, Chairman and CEO of ArcelorMittal. “Both India and Essar’s appeal are enduring. Essar has sizeable, profitable, well-located operations, and the long-term growth potential for the Indian economy and therefore Indian steel demand are well known. The transaction also demonstrates how India benefits from the Insolvency and Bankruptcy Code, a genuinely progressive reform whose positive impact will be felt widely across the Indian economy.”

AM/NS India, an integrated flat steel producer, is the largest steel company in western India and currently has an annual crude steel production of 7.5 million metric tons. The company’s iron ore pellet facilities in east India have a current annual capacity of 14 million MT.

The new owners plan to increase the mill’s finished steel shipments to 8.5 million MTs over the medium-term by improving efficiency and commissioning additional assets, targeting improved quality and grades as well as margins.

Eventually, AM/NS India hopes to increase finished steel shipments to 12-15 million MT through the addition of new iron and steelmaking assets.

“India is a large and strategic market and we are delighted to be here. Our aim is to create sustainable and long-term value by becoming a leading steel manufacturer in the country,” said Aditya Mittal. “Essar Steel has quality facilities which provide us with immediate and substantial production capacity, and we also gain an excellent platform for further growth, across both volume and product quality. This acquisition gives us the opportunity to contribute to India’s expansion in infrastructure and urbanization in the coming decades.”