AM/NS India has commissioned a new line for high-strength steel production at its Hazira plant

With the commissioning of the new line, the company's annual galvanized steel production capacity increased by 0.5 million tons to 3.3 million tons. With the commissioning of two more new lines by the end of the year, the company aims to increase the total capacity to 5 million tons.

The company announced plans to invest around INR 8,500 crore in five galvanizing lines at Hazira in 2022, of which around 85% has already been invested.

AM/NS India stated that the new high-strength galvanized steel products will replace imported alternatives and almost all automakers are lining up to supply it. The Indian automotive industry's annual steel demand is 8-9 million tons, of which about 15% is met by imports, the company noted. The company predicts that this import rate can be zeroed with the introduction of ArcelorMittal and Nippon Steel's patented products to the market.

The new CGL line is equipped with the latest technology developed in line with the global expertise of the parent companies. AM/NS India reported that value-added products account for 60% of its total sales and announced the launch of a special high-end product line to address the growing demand in the kitchenware segment.

Dilip Oommen, the company's Chief Executive Officer, noted that the new line and planned facilities are designed to produce steel equivalent to the product quality available in developed countries. The Indian automotive industry will benefit significantly from these investments, Oommen stated, as they will no longer place orders in advance, incur high logistics costs and foreign exchange risks.

AM/NS India aims to increase its total production capacity at the Hazira plant from 9 million tons to 15 million tons, while its long-term plans include upstream and downstream operations to reach a total annual production capacity of 24 million tons.

On the other hand, the company has initiated the land acquisition process to set up an integrated steel plant in the state of Andhra Pradesh. Work is reportedly underway for similar integrated plant projects in the state of Odisha.