Companies

Red-hot plans for Essar Steel

Suresh P Iyengar Mumbai | Updated on December 20, 2019 Published on December 20, 2019

ArcelorMittal Chairman Lakshmi Mittal, his son Aditya Mittal, Chairman, ArcelorMittal Nippon Steel India and the new management team at the newly acquired plant at Hazira in Gujarat. Special Arrangement

ArcelorMittal and Nippon Steel combine plans initial investment of ₹8,000 crore

ArcelorMittal Nippon Steel India aims to make the newly acquired Essar Steel the finest steel manufacturer in India, with an initial investment of ₹8,000 crore. Early this week, the ArcelorMittal and Nippon Steel combine paid ₹42,000 crore to clear the Essar Steel loan default of ₹49,000 crore and acquired the company through a two-year-long, insolvency-driven process.

Bold, confident plan

In a message to the employees, Aditya Mittal, President and CFO, ArcelorMittal, and Chairman, AM/NS India, said the company has a bold and confident plan to invest, support and grow this company to become the finest steel manufacturer in India. “We are committed to investing in the business so that it is not just the finest, but it also plays a pivotal role in developing the Indian steel industry,” he said.

The industrial strategy for India includes an initial investment of more than ₹8,000 crore to improve existing operations, efficiency, technology, product quality and profitability, he said. The company is also committed to growing the business further, reaching shipments to 8.5 million tonnes with a long-term aspiration of 12-15 million tonnes.

Stress on safety

Eiji Hashimoto, President, Nippon Steel, told employees that steel is called the ‘rice of industries’ in Japan, as it is essential to the economic growth of the country. The same should also apply to India. The company is pleased to contribute to and enhance the close friendship between India and Japan, he said.

On the safety policy followed by the company, Hashimoto said the internal greeting in Nippon Steel is ‘Go Anzen Ni!’, which means ‘Be Safe’, instead of ‘Hello’ or ‘Namaste!’

The trade name ‘Nippon’ means Japan, where the modern style of steelmaking started more than 160 years ago.

“We have production bases and businesses all over the world including India. Now we are happy to pursue new opportunities in India with you. I would like to applaud the dedicated efforts you have been making in the most recent difficult period,” he told employees in a note.

The Indian economy has been enjoying remarkable growth and its steel production is already the second largest in the world.

Steel demand in India is expected to grow further at a rapid pace, considering its steel consumption per capita still remains low by world standards, said Hashimoto.

Published on December 20, 2019
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