Arcelor Mittal Nippon Steel India (AM/NS India) has achieved record production volumes in FY 2019-20 despite challenging economic conditions, including the fallout of COVID-19 in the fourth quarter of the fiscal year.
Crude steel production in FY 2019-20 grew by 5 per cent to 7.23 MnT compared to 6.92 MnT in FY 2018-19. During the year, the company operated blast furnace set a new benchmark in productivity through our in-house innovation which enabled it to operate consistently over its rated capacity.
Pellet production reached 11.63 MnT during the period, up 9.4 per cent from 10.63 MnT the previous fiscal year.
Like many other countries, India’s efforts to contain the spread of the Coronavirus contagion led to a nationwide lock-down from March 25. Although central and state governments designated steel production as an essential service, constraints on the movement of people, logistics and downstream industries forced a significant cut in production to prevent build-up of surplus inventory. The entire industry, including AM/NS India, has also been impacted by weakening demand from large steel-consuming sectors such as automotive and construction.
Commenting on the operational performance, Dilip Oommen, CEO of AM/NS India said: “Despite price and demand volatility, AM/NS India made great strides to improve its overall performance and operational efficiency. Our record performance would have been even stronger but for the impact of Covid-19 on domestic and global steel demand towards the end of March. During these extraordinary times, the health and safety of our employees comes above all else. Our efforts have focused on ensuring that our facilities operate safely and securely. We have undertaken steps to achieve stability in our operations, as well as detailed planning so that we are well-prepared to ramp up operations when the situation improves, while also protecting employees and meeting customer needs.”
AM/NS India is the leading integrated flat carbon steel producer in India, with an achievable capacity of around 8.5 million tonnes per annum. We produce a full diversified range of flat steel products, including value-added steel, and have significant capacity to produce iron ore pellets. The entity is a joint venture (JV) between ArcelorMittal, one of the world’s leading steel and mining companies, and Nippon Steel, Japan’s largest steel producer.
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