Lakshmi Mittal takes stock of Essar Steel plant on first visit to Hazira

KOLKATA: ArcelorMittal chairman Lakshmi N Mittal on Tuesday made his first visit to Hazira, the Gujarat port town where his company, along with Japan’s Nippon Steel, bought Essar Steel out of bankruptcy in a Rs 42,000 crore deal.

The steel tycoon called the acquisition his “homecoming”. “I was born in India and my roots are in India. I have spent the past three decades building a steel business in multiple markets around the world,” Mittal said.

He described the acquisition of Essar Steel, now renamed ArcelorMittal Nippon Steel India (AM/NS India), as a strategic milestone for his company. “It is very satisfying to expand our global footprint by securing a significant presence in the Indian steel market,” the London-based industrialist said, according to the inaugural newsletter of AM/NS India.

Mittal also outlined his aspirations for AM/NS India, given the promising long-term economic outlook, especially in areas like automotive steel. While one out of five cars made in the world uses ArcelorMittal’s steel, its expertise in automotive steel is mirrored by partner Nippon Steel as well. “Together we will bring this expertise to India,” he said. Mittal was accompanied by his son and Arcelor-Mittal chief financial officer, Aditya Mittal, and Nippon Steel executives.

Nippon Steel president Eiji Hashimoto said the two partners wanted to make the company the best in India.

ArcelorMittal executives said the plant being port-based would give an advantage in transporting raw materials and finished products.

If it was a rare instance of Mittal senior wearing his heart on his sleeve, son Aditya who has been appointed chairman of AM/NS India, said he remained “as excited” as he was on the day when with ArcelorMittal colleagues “we sketched a future for Essar Steel”. “That early discussion has become a reality: Essar Steel is now AM/NS India,” he said, adding: “On my first visit to Hazira in November 2017, I was struck by the place, its people, the plant and its potential.”

ArcelorMittal and its partner have a “bold and confident” plan to invest, support and grow this company to make it the finest steel manufacturer in India which would play a pivotal role in developing the domestic steel industry, the Mittal scion said. That plans includes an initial investment of Rs 8,000 crore in improving operations, increasing annual shipments to 8.5 million tonnes, developing an R&D centre in Hazira and, in the longer term, expanding it to a 12-15 million tonne facility.