Magnetics Business & Technology - September/October 2021 - 31

INDUSTRY NEWS
AM/NS, the New Face for Electrical Steel Production in India, Books $1B in Earnings
ready, the new joint venture company is the leading integrated
flat carbon steel producer in India with a capacity of around 8.5
million tons annually, producing a diversified range of flat steel
products including value-added lines such as electrical steel.
The plan includes investment commitments of more than $1
billion to support operational improvement, increased production
levels and enhanced levels of profitability in the short to
medium term. The long-term ambition is to significantly scale up
production capabilities and establish a research and development
centre at Hazira, Gujarat, site of the company's main
plant.
Eighteen months into existence, ArcelorMittal Nippon Steel
India (AM/NS India) reports a strong resurgence in its fortunes,
booking more than $1 billion in profits amidst rising demand in
the first six months of 2021. Backed by the deep pockets and
persistence of ArcelorMittal and Nippon Steel, the joint venture
is emerging as the new face of Essar Steel in India, a large but
insolvent manufacturer of electrical and other steel products
that the two partners finally rescued from bankruptcy. Now they
are focused on growth.
ArcelorMittal, one of the world's leading steel and mining
companies, and Nippon Steel, Japan's largest steel producer,
teamed up to gain an entry to the robust Indian domestic steel
market where electrification and e-mobility manufacturing are
on a strong upward curve, with demand rising about 6% annually.
ArcelorMittal owns 60% of the new joint venture and
Nippon Steel, 40%, in an acquisition of Essar that was valued
at about $5.7 billion.
Perseverance and a long-term view finally paid off for the two
companies. Both had been seeking a doorway into the Indian
market and the path through bankruptcy took a grueling 865
days including time with the Indian supreme court.
" 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, " said
Lakshmi Mittal, who was chairman and
CEO of ArcelorMittal at the time and now
is executive chairman.
Lakshmi Mittal,
chairman of ArcelorMittal
Now,
new production capabilities and
technology development, certain to impact
the company's output of electrical steel as
well as other products, are beginning. AlOn
July 29, the company reported that it earned $607 million
during the second quarter of the year which ended June 30.
That comes on top of $403 million in earnings in the first three
months of the year, all accompanied by rising demand and
production levels.
" AM/NS India's progress in the 18 months
since its inception is an excellent foundation
to advance our plans to pursue both
organic expansion and strategic opportunities
in support of India's growing
economy, " said Aditya Mittal, the current
chairman of AM/NS India and CEO of
ArcelorMittal.
For more info, see www.amns.in
Aditya Mittal, chairman
of AM/NS India
& CEO of ArcelorMittal
www.MagneticsMag.com
September/October
2021 * Magnetics Business & Technology 31
http://www.amns.in http://www.itg-electronics.com http://www.MagneticsMag.com
Magnetics Business & Technology - September/October 2021

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