AM/NS India launches 2 MT auto steel line at Gujarat plant
Synopsis
Key Takeaways
ArcelorMittal Nippon Steel India (AM/NS India) on Thursday, 30 April 2025, inaugurated a state-of-the-art automotive steel production line at its Hazira plant in Gujarat, marking a significant step toward reducing India's import dependence on high-grade steel and advancing the Atmanirbhar Bharat initiative. The new facility, with a capacity of 2 million tonnes per annum (MTPA), was inaugurated by Japan's Ambassador to India, Keiichi Ono.
What the New Facility Offers
The newly commissioned Pickling Line and Tandem Cold Mill (PLTCM) is designed to produce high-quality cold-rolled steel and advanced automotive-grade products for the domestic market. The line is equipped to manufacture Advanced High Strength Steel (AHSS) — a critical material used in modern vehicle manufacturing for enhanced safety and weight reduction.
The facility incorporates advanced automation, globally benchmarked quality systems, and caters to a wide range of applications including galvanised, galvannealed, and press-hardened steel used in contemporary vehicles. This positions AM/NS India to serve original equipment manufacturers (OEMs) seeking domestically sourced, high-specification steel.
Part of a ₹60,000 Crore Expansion
The PLTCM commissioning is a component of AM/NS India's ongoing ₹60,000 crore expansion programme at its Hazira integrated steel complex in Gujarat. The broader programme aims to strengthen both upstream and downstream capabilities, scaling the plant's overall output and product portfolio significantly.
This is one of the largest private-sector steel investment programmes currently underway in India, and analysts note it aligns with the Centre's broader push to raise domestic steel production capacity ahead of infrastructure and manufacturing demand cycles.
India-Japan Industrial Cooperation
Speaking at the inauguration, Ambassador Keiichi Ono said the project reflects deepening industrial cooperation between India and Japan, describing it as a combination of Japanese technology with India's manufacturing capabilities under the 'Make in India, Make for the World' vision. The joint venture between ArcelorMittal and Nippon Steel — two of the world's largest steelmakers — underpins the technological edge of the new line.
What the CEO Said
AM/NS India CEO Dilip Oommen said the new line would support import substitution, enhance supply chain resilience, and help the automotive sector transition towards safer, lighter, and more sustainable mobility solutions. Notably, Oommen is set to retire on 30 June 2025 and will continue as a board member, while CFO Amit Harlalka is slated to take over as CEO from 1 July 2025.
Growing Demand for Automotive Steel in India
India's demand for high-quality automotive flat steel is currently estimated at around 7.8 million tonnes per annum and is projected to grow at up to 7% annually, driven by rising vehicle production and increasing adoption of advanced materials. The new PLTCM line directly addresses a structural gap in domestic supply, where premium automotive steel grades have historically been sourced through imports.
With vehicle electrification accelerating and automakers increasingly specifying lighter, stronger steel grades, domestic production of AHSS is expected to become a competitive differentiator for Indian steelmakers in the years ahead.