AM/NS India plans to invest INR 100 crore to set up three scrap-processing centers in Gujarat and Maharashtra.
Dec 06, 2023
ArcelorMittal Nippon Steel India (AM/NS India) plans to set up three dedicated scrap-processing centers in Gujarat and Maharashtra, as major steel companies in India anticipate difficulties in meeting their scrap requirements through imports. AM/NS India in a statement said it will invest about INR 100 crore in the three centers: one at the flagship plant in Hazira, another in Ahmedabad, and the third in Khopoli, Maharashtra by December 2024. The investments will also help the company achieve its carbon-emissions reduction targets by maximizing the use of steel scrap. AM/NS India has a current steelmaking capacity of 9 million tonnes a year and expects substantial potential for maximizing the use of steel scrap during steelmaking. The company claims it achieved a 32 percent reduction in CO2 emissions intensity by December 2022 from 2015 levels.
Currently, (AM/NS India) has a scrap mix of 3-5 percent of its total steelmaking capacity in the EAF. By establishing the scrap processing centers, the company aims to achieve a 9 percent scrap mix by 2025 with its new basic oxygen furnace and the existing electric arc furnace (EAF). Scrap production in India is not enough scrap to meet the industry’s demands and depends on imports to a large extent. Imports are set to take a hit as countries around the world are recycling more scrap domestically to reduce the use of pollutive feedstocks such as iron ore in the steel-making process. While India clocked high imports of about 7 MTPA of steel scrap in 2022-23, companies anticipate imports will drop and are looking at ways of processing scrap within the country.
Mr. Dilip Oommen, Chief Executive, ArcelorMittal Nippon Steel India, said, “We aim to significantly increase the scrap mix while simultaneously reducing dependence on steelmaking from primary raw materials like iron ore and coal.”