MT - ArcelorMittal Nippon Steel JV to spend $5B in India expansion

An Indian joint venture of ArcelorMittal ( NYSE: MT ) and Nippon Steel will spend 410B rupees (~$5B) to increase crude steel production capacity by 6M metric tons/a year at its Hazira plant, aimed at meeting rising steel demand in India, Reuters reported Wednesday.

The JV will build two blast furnaces and various other facilities that will raise annual steel output capacity to ~15M metric tons at the plant in western India, with plans to start operations by mid-2026.

The JV also is considering a new steel plant in eastern India while it plans to keep expanding the Hazira plant even beyond 15M tons, a Nippon Steel executive said.

Separately, Luxembourg's economy ministry said that it signed a memorandum of understanding with ArcelorMittal ( MT ) to support the company's decarbonization efforts .

The first tranche of decarbonization projects has an estimated budget of €100M ($96M) and includes the installation of a new electric arc furnace at the company's Belval steel plant, the ministry said.

ArcelorMittal ( MT ) offers "a strong balance sheet [that] allows for opportunistic M&A," The Investment Doctor writes in a bullish analysis posted on Seeking Alpha .

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