ArcelorMittal Nippon Steel India invests Rs 100 cr in scrap centres to boost sustainability

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ArcelorMittal Nippon Steel India invests Rs 100 cr in scrap centres to boost sustainability

ArcelorMittal Nippon Steel India invests Rs 100 cr in scrap centres to boost sustainability

Industry News
Dec 07,23

Company is poised to establish three dedicated scrap-processing centres in Gujarat and Maharashtra, as leading steel companies in India anticipate challenges in meeting their scrap requirements through imports.

ArcelorMittal Nippon Steel India invests Rs 100 cr in scrap centres to boost sustainability

ArcelorMittal Nippon Steel India (AM/NS India) is poised to establish three dedicated scrap-processing centres in Gujarat and Maharashtra, as leading steel companies in India anticipate challenges in meeting their scrap requirements through imports.

AM/NS India has committed an investment of approximately Rs 100 crore in these three centers—located at the flagship plant in Hazira, Ahmedabad, and Khopoli, Maharashtra—by December 2024. These investments align with the company's carbon-emission reduction goals, leveraging steel scrap to achieve sustainability targets.

Dilip Oommen, the Chief Executive of ArcelorMittal Nippon Steel India, emphasised the company's objective to significantly boost the scrap mix while reducing reliance on primary raw materials like iron ore and coal.

AM/NS India, with a current steelmaking capacity of 9 million tonnes per year, envisions substantial potential in maximising the use of steel scrap during the steelmaking process. The company claims a 32% reduction in CO2 emissions intensity by December 2022 compared to 2015 levels.

The establishment of these scrap processing centres aims to achieve a 9% scrap mix by the end of 2025, utilising both the new basic oxygen furnace and the existing electric arc furnace (EAF). Currently, the EAF operates with a scrap mix of 3-5% of its total steelmaking capacity.

Given that India faces a shortage of domestically generated scrap to meet industry demands, the country heavily relies on imports. However, with global shifts towards domestic scrap recycling, imports are expected to decline. In response, major steel manufacturers in India are investing in scrap yards and processing centres. Tata Steel is venturing into secondary steel manufacturing, while JSW Steel is investing Rs 175 crore to commission a shredder in western Maharashtra by the next year, along with plans for scrap-processing centres across the country.

The Indian government is actively promoting the focus on scrap processing in the steel industry through the Ministry of Steel, which introduced the Steel Scrap Recycling Policy on November 7, 2019. This policy provides a framework for establishing metal scrapping centers in India, facilitating the scientific processing and recycling of ferrous scrap.

Source: Mint