AMNS India increased steel production by 2% y/y in January-March

Shipments in this period increased by 5.7% y/y

AMNS India, a joint venture between ArcelorMittal and Nippon Steel, increased steel production by 2% y/y in the first quarter of 2023 – up to 1.76 million tons. Kallanish reports about it.

Shipments in January-March 2023 increased by 5.7% – up to 1.83 million tons in annual terms.

EBITDA (earnings before interest, taxes, depreciation and amortization) in January-March fell by 27.4% y/y – to $341 million. However, compared to the fourth quarter of 2022, this indicator increased by 110.5% due to increased steel supplies, higher average selling prices and lower costs, in particular, on energy.

AMNS India has an approved investment plan of $7.4 billion to expand capacity, enhance value-adding capabilities and improve infrastructure utilization. $5.6 billion of the total amount will be directed to the expansion of production.

AMNS India’s investment in the Hazira plant ($0.8 billion of the total) is aimed at meeting the growing demand in the automotive industry. It is expected that continuous galvanizing line №4 (CGL4) will be put into operation at the enterprise in July 2023, and cold rolling mill №2 – in July 2024. According to the company, the first phase of the expansion of the plant’s capacity in Hazira is underway to increase the production capacity to 15 million tons per year by the beginning of 2026.

As GMK Center reported earlier, in April 2023, AMNS India received approval from the regulatory authority of India (NCLT) for the purchase of Indian Steel Corporation. Indian Steel Corporation, based in the state of Gujarat, specializes in cold-rolled, galvanized and non-ferrous steel products, the company’s production capacity is 600 thousand tons of products per year, it also has a service center on its territory.

Also, in January, a joint venture between ArcelorMittal and Nippon Steel received approval for a $4.68 billion steel plant project from the Odisha government.