ArcelorMittal Nippon Steel India (AM/NS India) has officially opened its inaugural scrap processing facility at the Khopoli manufacturing site in Maharashtra, boasting an annual processing capacity of 120,000 tonnes. This facility marks the first of four scrap processing units that AM/NS India is establishing across the country as part of a ₹350 crore investment initiative. The aim is to address the growing demand for high-quality scrap used in steel production while also bolstering domestic scrap supply chains.
Currently, India’s scrap supply chain is fragmented, involving multiple intermediaries from local scrap collectors to scrapyards, before reaching end-users. This convoluted process leads to higher costs, lower material quality, and little value-added benefits. By managing its own scrap processing facilities, AM/NS India is enhancing the quality of materials, improving yield, and reducing both conversion and logistics costs, all while helping to formalise the domestic scrap sector.
The opening of the Khopoli unit follows a successful pilot project that focused on large-scale scrap processing, which is crucial to meet the increasing demand for recycled steel from AM/NS India’s diverse customer base, including automotive manufacturers and shipping companies. Government policies, such as the Vehicle Scrappage Policy (2021), upcoming Extended Producer Responsibility (EPR) regulations set to take effect in April 2025, and the Green Steel Taxonomy, are expected to further enhance domestic scrap supply. AM/NS India’s expansion of its scrap processing capacity is aligned with national efforts to improve scrap availability and the overall efficiency of the supply chain.
Akshaya Gujral, Executive Director of Downstream Operations at AM/NS India, commented, “India has set a goal to increase scrap metal usage in steel production to 50% by 2047. The steel industry must play a key role in developing the necessary infrastructure and ecosystem to support this goal. Our Khopoli unit, along with the additional units set to launch this year, will aid in formalising the domestic scrap industry, meet the rising demand for recycled steel, and contribute to India’s sustainability targets.”
As outlined in its 2024 Climate Action Report, AM/NS India is also pursuing a decarbonisation strategy aimed at raising the proportion of scrap in steelmaking to over 10% by 2030, up from the current 3-5%. The company is increasingly integrating high-quality scrap into its production processes, with 65% of its steelmaking capacity currently using the gas-based Direct Reduced Iron (DRI) and Electric Arc Furnace (EAF) methods, which are particularly suited for processed scrap.
AM/NS India is a joint venture between ArcelorMittal and Nippon Steel, two global leaders in steel manufacturing. As one of India’s top integrated flat carbon steel producers, the company has a crude steel capacity of 9 million tonnes per year and operates advanced downstream facilities. It manufactures a wide range of flat steel products, including value-added steel, and has a pellet capacity of 20 million tonnes.
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