Nippon Steel said the India-ArcelorMittal joint venture will invest $5 billion to expand.
TOKYO – The Japanese company said on Wednesday that an Indian joint venture between ArcelorMittal (NYSE:MT) and Nippon Steel will spend 410 billion rupees ($5 billion) to increase crude steel production by 6 million metric tonnes a year at its Hazira plant.
AM/NS India, which is their joint venture, will build two blast furnaces and other facilities at its Hazira plant in western India. They hope to start running the plant by the beginning of 2026.
The goal of the expansion is to meet the rising demand for steel in India and get a bigger share of the market.
After the expansion, the Hazira plant will be able to make about 15 million tonnes of steel each year.
Related: As raw material prices rise, ArcelorMittal returns to profit.
The executive vice president of Nippon Steel, Takahiro Mori, recently told Reuters that the company plans to almost double the amount of crude steel it can make at its Hazira plant to get a bigger share of the growing market.
$1 equals 81.8950 Indian rupees
