On December 16, global steel giant ArcelorMittal said that it has completed the acquisition of Essar Steel India and established ArcelorMittal Nippon Steel India Limited (AM/NS India), a joint venture with Nippon Steel Corporation which will operate the Indian production facilities. ArcelorMittal holds 60 percent in the JV, with Nippon Steel holding the remainder.
Aditya Mittal has been appointed as chairman, while Dilip Oommen will be CEO of 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,” Lakshmi Mittal, chairman and CEO of ArcelorMittal, stated.
AM/NS India is an integrated flat steel producer, and the largest steel company in western India with annualised crude steel production at 7.5 million mt. The new owners are going to increase finished steel shipments to 8.5 million mt over the medium term. Taking into account that the facilities are working at a very high utilization rate - at about 90 percent - it is expected that the overall increase in sales volumes will be gradual, according to sources.
In the long term, finished steel shipments are expected to rise to 12-15 million mt per year through the addition of new iron and steelmaking assets.
