ArcelorMittal and Nippon Steel joint venture - AMNS India - plans to invest £2 billion for future expansion of its integrated steel plant at Hazira near Surat. AMNS India’s expansion and investment plan was shared by LN Mittal, chairman and CEO, ArcelorMittal in a video conference with Gujarat chief minister Vijay Rupani, the company said in a statement.
After a long drawn battle, AMNS India acquired Essar Steel, which owned and operated the steel plant at Hazira, in December 2019 by paying £5 billion. AMNS is already in the process of expanding the steel plant capacity from the current 7.3 MTPA to 8.6 MTPA, which involves an ongoing investment of £500 million.
Welcoming AMNS India’s decision to invest in Gujarat, Rupani said that his team would take forward the strong foundation for economic development - laid by the Prime Minister Narendra Modi - by continuing to welcome investments and creating favorable ecosystem for ensuring competitiveness of manufacturing industry including MSMEs.
AMNS India is a 60:40 JV between ArcelorMittal and Japan-based Nippon Steel Corporation. ArcelorMittal acquired debt-ridden Essar Steel India Ltd through insolvency process and subsequently renamed it as AMNS India Ltd.
The resolution plan, which was approved for AMNS India, included an upfront payment of £4.28 billion towards AMNS India's debt resolution, including working capital payment, with further £ 800 million of capital injection.
