India’s Vardhaman Special Steel Limited (VSSL) has announced plans to establish a $284 million special steel manufacturing facility in partnership with Aichi Steel Corporation (ASC) of Japan. The new project aims to strengthen India’s special steel capacity while advancing green and sustainable steel production.
The upcoming plant will be located in Ludhiana, Punjab, and will have an installed capacity of 500,000 mt per year. The facility will primarily produce special steel for automotive applications, serving both domestic and international markets.
Green steel manufacturing via electric arc furnace
VSSL confirmed that the new facility will adopt the electric arc furnace route, enabling higher energy efficiency, lower carbon emissions, and cleaner and sustainable steel production.
Alongside the steelmaking plant, the company will also invest in a solar power facility to meet its complete energy requirements. By relying on renewable energy, the project will prioritize green steel manufacturing through melting steel scrap using energy-efficient technologies.
This collaboration underscores VSSL’s commitment to India’s net-zero emissions goal, ensuring the steel industry transitions towards sustainability and reduced environmental impact.