AMNS India plans to triple its steel production capacity by 2030

The plans underscore the company's confidence in domestic demand for steel

AMNS India (a joint venture between ArcelorMittal and Japan’s Nippon Steel) aims to reach steel production capacity of 25-26 million tons by 2030, according to the company’s CEO Dilip Oommen, as reported by Realty Plus Magazine.

This is almost three times the current production volume. Thus, AMNS India emphasizes its long-term confidence in the demand for steel in India.

AMNS India plans to increase production at its plant in Hazira (Gujarat) to 15 million tons per year by 2026 and to 18 million tons per year in the future. In addition, there are plans to build a new facility from scratch in Rajayapeti (Andhra Pradesh) with a capacity of 8.2 million tons of steel per year. The latter is expected to be commissioned around 2030.

The expansion strategy is accompanied by corresponding capital expenditures. AMNS India is expected to invest between 55 and 60 billion rupees (approximately $6 to $6.6 billion) over a three-year period from 2025/2026 to 2027/2028 fiscal years.

The company also plans to increase pellet production in Odisha and Andhra Pradesh, with investments in ports and mining assets to ensure uninterrupted supply chains as production grows.

In addition, AMNS India is working on sustainable development. The company plans to develop approximately 7 GW of renewable energy capacity by 2032 to support low-carbon steel production and reduce energy costs.

At the same time, as Dilip Oommen noted, the Indian steel industry is currently under pressure from high raw material costs and low steel prices, which is reducing the sector’s profitability. This makes it difficult for steel producers to finance major expansion plans while maintaining healthy profitability.

It should be recalled that Tata Steel intends to transform its plant in Kalinganagar (Odisha state) into its largest production site with a steel production capacity of over 16 million tons per year. The company has currently invested 50 billion rupees in this project. This has been the largest organic capacity expansion in Tata Steel’s history (from 3 to 8 million tons). Its highlight was the introduction of India’s largest blast furnace at the plant.