AM/NS India launches first scrap processing facility in Maharashtra

• Khopoli unit to supply high-quality scrap for AM/NS steel production
• AM/NS targets 10% scrap mix in steelmaking by 2030

ArcelorMittal Nippon Steel India (AM/NS India) has commissioned its first scrap processing facility with a capacity of 120,000 tonnes per annum at its Khopoli manufacturing plant in Maharashtra. This is the first of four facilities the company plans to develop across the country as part of its INR 350 crore investment programme. The initiative aims to strengthen domestic scrap supply chains and meet the growing demand for high-quality scrap in steel production.

Streamlining fragmented scrap supply chain

India’s domestic scrap supply chain is highly fragmented, with materials passing through multiple intermediaries–from local collectors to scrapyards–before reaching end-users. This complex process inflates costs, reduces material quality, and diminishes efficiency. By processing scrap in-house, AM/NS India aims to enhance material quality and yield while lowering conversion and logistics costs, helping formalise the scrap industry.

Pilot project success drives expansion

The commissioning of the Khopoli unit follows a successful pilot project that processed scrap at scale, demonstrating the rising demand for recycled steel. AM/NS India’s customer base, including automotive manufacturers and ship fleet operators, is increasingly turning to recycled steel to meet sustainability goals.

Govt policies to boost scrap availability

The company’s scrap expansion aligns with government initiatives such as the Vehicle Scrappage Policy (2021), Extended Producer Responsibility norms (effective April 2025), and the Green Steel Taxonomy, which are expected to boost domestic scrap availability. These policies support India’s target of increasing scrap usage in steel production to 50% by 2047, driving the country’s green steel ambitions.

Commitment to sustainability and efficiency

Akshaya Gujral, Executive Director of Downstream Operations at AM/NS India, highlighted the steel sector’s role in building sustainable infrastructure and strengthening the scrap ecosystem. He noted that the Khopoli unit, along with upcoming facilities, will support scrap industry formalisation, meet the growing demand for recycled steel, and contribute to India’s decarbonisation goals.

Increasing scrap mix in steel production

AM/NS India plans to raise the scrap mix in its steel production to over 10% by 2030, up from the current 3-5%. With 65% of its existing steelmaking capacity running on the gas-based Direct Reduced Iron (DRI)-Electric Arc Furnace (EAF) route, the company is well-positioned to integrate high-quality scrap into its production, enhancing sustainability and cost-efficiency.