India’s ArcelorMittal Nippon Steel Limited (AMNS) will set up three captive scrap processing centres across the states of Gujarat and Maharashtra entailing an investment of $12 million, the company said in a statement on Thursday, December 7.
The projects are to be constructed at Hazira, the site of its existing steel mill, and at Ahmedabad in Gujarat and Khopoli in Maharashtra and are being undertaken in anticipation of India facing a shortage of imported scrap in the coming years, the company said.
“We aim to significantly increase the scrap mix while simultaneously reducing dependence on steelmaking from primary raw materials like iron ore and coal," Dilip Oommen, chief executive of AMNS, said.
AMNS has a current steelmaking capacity of 9 million mt per year and expects substantial potential for maximising the use of steel scrap during steelmaking, and it claims to have achieved a 32 percent reduction in CO2 emissions intensity by December 2022 from 2015 levels.
With these scrap processing centers, the company aims to achieve a nine percent scrap mix by the end of 2025 with its new basic oxygen furnace and the existing electric arc furnace (EAF). Currently, it has a scrap mix of 3-5 percent of its total steelmaking capacity in the EAF.