ArcelorMittal holds investor day in India
ArcelorMittal hosted an investor day at AM/NS India's Hazira plant, showcasing the joint venture's progress and future plans. Key highlights include:
1. AM/NS India's strong performance since 2019 acquisition, with record production levels and competitive Ebitda.
2. $5.8 billion cash generation enabling significant growth investments.
3. Ongoing expansion project to increase steelmaking capacity from 9 to 15 million tonnes by 2026.
4. Long-term vision to reach 40 million tonnes annual capacity.
5. Plans to reduce carbon intensity by 20% by 2030 and develop renewable energy capacity.
India is projected to be the world's fastest-growing steel market, with domestic demand expected to grow at a CAGR of over 6% in the next decade.
ArcelorMittal ha organizzato un evento per investitori presso lo stabilimento Hazira di AM/NS India, mettendo in mostra i progressi della joint venture e i piani futuri. I punti salienti includono:
1. L'ottima performance di AM/NS India dalla acquisizione nel 2019, con livelli di produzione record e un Ebitda competitivo.
2. Generazione di cassa di 5,8 miliardi di dollari che consente significativi investimenti per la crescita.
3. Un progetto di espansione in corso per aumentare la capacità di produzione di acciaio da 9 a 15 milioni di tonnellate entro il 2026.
4. Visione a lungo termine per raggiungere una capacità annuale di 40 milioni di tonnellate.
5. Piani per ridurre l'intensità di carbonio del 20% entro il 2030 e sviluppare capacità di energia rinnovabile.
Si prevede che l'India diventi il mercato dell'acciaio a più rapida crescita al mondo, con una domanda interna che dovrebbe crescere a un CAGR di oltre il 6% nel prossimo decennio.
ArcelorMittal organizó un día de inversores en la planta Hazira de AM/NS India, mostrando los avances de la joint venture y los planes futuros. Los puntos destacados incluyen:
1. El sólido rendimiento de AM/NS India desde la adquisición en 2019, con niveles de producción récord y un Ebitda competitivo.
2. Generación de efectivo de 5.8 mil millones de dólares que permite inversiones significativas para el crecimiento.
3. Proyecto de expansión en curso para aumentar la capacidad de producción de acero de 9 a 15 millones de toneladas para 2026.
4. Visión a largo plazo para alcanzar una capacidad anual de 40 millones de toneladas.
5. Planes para reducir la intensidad de carbono en un 20% para 2030 y desarrollar capacidad de energía renovable.
Se proyecta que India sea el mercado de acero de más rápido crecimiento en el mundo, con una demanda interna que se espera crezca a una tasa compuesta anual (CAGR) de más del 6% en la próxima década.
아르셀로미탈은 AM/NS 인도의 하지라 공장에서 투자자 데이를 개최하며 합작 투자 회사의 발전과 향후 계획을 보였습니다. 주요 하이라이트는 다음과 같습니다:
1. 2019년 인수 이후 AM/NS 인도의 강력한 성과로 생산 기록과 경쟁력 있는 Ebitda를 기록했습니다.
2. 58억 달러의 현금 창출로 인해 중요한 성장 투자가 가능합니다.
3. 2026년까지 제강 능력을 900만 톤에서 1500만 톤으로 늘리기 위한 지속적인 확장 프로젝트.
4. 연간 4000만 톤의 생산 능력에 도달하기 위한 장기 비전.
5. 2030년까지 탄소 강도를 20% 줄이고 재생 가능 에너지 용량을 개발할 계획입니다.
인도는 향후 10년 동안 연평균 6% 이상의 성장률을 예상되며 세계에서 가장 빠르게 성장하는 철강 시장이 될 것으로 보입니다.
ArcelorMittal a organisé une journée investisseurs à l'usine Hazira d'AM/NS India, présentant les avancées de la coentreprise et les projets futurs. Les points clés incluent:
1. La solide performance d'AM/NS India depuis son acquisition en 2019, avec des niveaux de production record et un Ebitda compétitif.
2. Génération de cash de 5,8 milliards de dollars permettant d'importants investissements pour la croissance.
3. Projet d'expansion en cours visant à porter la capacité de production d'acier de 9 à 15 millions de tonnes d'ici 2026.
4. Vision à long terme d'atteindre une capacité annuelle de 40 millions de tonnes.
5. Plans pour réduire l'intensité carbone de 20 % d'ici 2030 et développer la capacité en énergie renouvelable.
On prévoit que l'Inde sera le marché de l'acier à la croissance la plus rapide au monde, la demande intérieure devant croître à un TCAC de plus de 6 % au cours de la prochaine décennie.
ArcelorMittal veranstaltete einen Aktionärstag im Werk Hazira von AM/NS India und zeigte die Fortschritte und Zukunftspläne des Joint Ventures. Wichtige Highlights sind:
1. Die starke Leistung von AM/NS India seit der Übernahme im Jahr 2019, mit Rekordproduktionszahlen und wettbewerbsfähigem Ebitda.
2. Die Generierung von 5,8 Milliarden Dollar in bar ermöglicht signifikante Wachstumsinvestitionen.
3. Ein fortlaufendes Expansionsprojekt zur Erhöhung der Stahlkapazität von 9 auf 15 Millionen Tonnen bis 2026.
4. Langfristige Vision zur Erreichung einer jährlichen Kapazität von 40 Millionen Tonnen.
5. Pläne zur Reduzierung der Kohlenstoffintensität um 20% bis 2030 und zur Entwicklung von erneuerbaren Energiekapazitäten.
Es wird prognostiziert, dass Indien der am schnellsten wachsende Stahlmarkt der Welt sein wird, mit einer erwarteten inländischen Nachfrage, die im nächsten Jahrzehnt mit einer CAGR von über 6% wachsen wird.
- Record production levels achieved in Q1 2024
- AM/NS India's Ebitda per tonne exceeded average of Indian steel peers in H1 2024
- $5.8 billion cash generation since acquisition
- Expansion project to increase steelmaking capacity from 9 to 15 million tonnes by 2026
- Expected 2.5x increase in Ebitda and investable cash flow after phase 1 expansion
- Long-term vision to reach 40 million tonnes annual capacity
- Plans to reduce carbon intensity by 20% by 2030
- None.
Event highlights India’s position as world’s fastest growing steel market and AM/NS India’s vision to become the benchmark for quality, scale and sustainability in Indian steelmaking
25 September 2024, 11:30 CET
ArcelorMittal today hosted an investor day at AM/NS India’s flagship plant in Hazira, Gujarat. The event provided members of the investment community with the opportunity to witness first-hand the progress AM/NS India – a 60/40 joint venture between ArcelorMittal and Nippon Steel – is making with the first phase of its project to grow steelmaking capacity in Hazira and insight into its long-term vision to reach 40 million tonnes of annual capacity.
In addition to the site tour the event included presentations and a question and answer session with Aditya Mittal, ArcelorMittal CEO and AM/NS India Chairman, and members of the AM/NS India management committee including Dilip Oommen, CEO of AM/NS India. The focus of the presentations was on AM/NS India’s progress over the past four years and its growth plans, including:
- AM/NS India’s strong performance since the acquisition in 2019: capacity debottlenecking has led to record levels of production in the first quarter of this year, and AM/NS India’s Ebitda per tonne exceeded the average of Indian steel peers in the first half of 2024.
- Cash generation of
$5.8 billion since acquisition, which has enabled$5.8 billion of growth investment - including securing the company’s supply chain and enhancing profitability through several strategic acquisitions including slurry pipelines, iron ore mines, ports, power plants and land. Despite these investments net debt has remained stable since the acquisition given low cash needs, including very competitive funding costs. - Insight into the progress being made on the first phase of AM/NS India’s transformational expansion project at Hazira. The upstream capacity expansion (
$5.1 billion ) targets growing annual steelmaking capacity from 9 million tonnes to 15 million tonnes by 2026, while the downstream expansion ($1 billion ) will significantly enhance AM/NS India’s ability to produce technically sophisticated steel products for the most demanding customer sectors, including automotive, and introduce advanced products such as Magnelis®, which offers best-in-class corrosion resistance, to its product portfolio. - These projects – part of an overall
$7.7 billion investment programme - are progressing to plan, with transformational impacts on profitability anticipated; following phase 1, AM/NS India’s Ebitda and investable cash flow (operating cash flow less maintenance capex) are expected to increase by a factor of 2.5x. - Plans are under development to further expand production. Phase 2A is a capex-efficient expansion project that would see steelmaking capacity grow to 18 million tonnes by 2028 with phase 2B taking capacity at Hazira to 24 million tonnes by the end of the decade, making AM/NS Hazira the world’s largest, single site, coastal steelmaking facility. Upon completion, Ebitda and investable cash flow would grow to approximately 4x current levels.
- Further greenfield development options are under consideration to take steelmaking capacity to 40 million tonnes in the long-term, meaning AM/NS India is ideally positioned to capture the anticipated growth in Indian domestic demand in this decade and beyond.
- India is forecast to be the world’s third largest economy by 2028 with GDP in excess of
$5 trillion ; domestic steel demand is set to grow at a CAGR of over 6 per cent over the next decade making India the world’s fastest growing steel market. - AM/NS India’s plans to ensure its growth is delivered in a responsible and sustainable manner: target to reduce the carbon intensity of the steel it produces by 20 per cent by 2030 (from a 2021 baseline); ambitious plans to develop captive renewable energy capacity (
$0.7 billion , 1GW renewable energy project – funded by ArcelorMittal – recently commissioned with further projects under evaluation).
Copies of the presentations used during today’s meeting can be found on the company’s website at https://corporate.arcelormittal.com/investors/equity-investors/shareholders-events
AM/NS India expansion plans (progress to date and phase 1) in detail
- Following completion of the acquisition in 2019, AM/NS India embarked on a
$0.8 billion debottlenecking project to realise the Hazira plant’s 9 million tonne nameplate capacity. This project is nearing completion and AM/NS India has achieved a production run-rate in excess of 8 million tonnes this year. - Organic growth has been supplemented several strategic acquisitions over the past four years, including: four power plants with total capacity of 1345MW; a 250km slurry pipeline; several key infrastructure port and power assets; two downstream coating facility (Uttam Galva (1.2 million tonne capacity) and Indian Steel (0.6 million tonne capacity)).
- Phase 1 expansion: the
$5.1 billion phase 1 upstream expansion project to increase annual production capacity to 15 million tonnes is underway with project completion anticipated in 2026. The project involves construction of two state-of-the-art 3.5 million tonne capacity blast furnaces and associated assets (three basic oxygen furnaces, hot strip mill, two sinter plants, pellet plant, four coke oven batteries, plus ancillary equipment and raw material handling systems) - Phase 1 expansion: the
$1 billion phase 1 downstream expansion project is designed to improve AM/NS India’s ability to deliver technically sophisticated, added-value products for sectors including automotive. It involves construction of a cold rolling mill complex, which includes: a pickling line and tandem cold mill; a 1 million tonne capacity continuous galvanizing and annealing line; and two 0.5 million tonne capacity continuous galvanizing lines, the second of which was commissioned in December 2023 and is a dedicated facility to produce Magnelis®.
ENDS
About ArcelorMittal
ArcelorMittal is one of the world’s leading integrated steel and mining companies with a presence in 60 countries and primary steelmaking operations in 15 countries. It is the largest steel producer in Europe, among the largest in the Americas, and has a growing presence in Asia, including India, through its joint venture AM/NS India.
ArcelorMittal sells its products to a diverse range of customers including the automotive, engineering, construction and machinery industries, and in 2023 generated revenues of
Our purpose is to produce smarter steels for people and planet. Steels made using innovative processes which use less energy, emit significantly less carbon and reduce costs. Steels that are cleaner, stronger and reusable. Steels for the renewable energy infrastructure that will support societies as they transform through this century. With steel at our core, our inventive people and an entrepreneurial culture at heart, we will support the world in making that change.
ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS). For more information about ArcelorMittal please visit: http://corporate.arcelormittal.com.
| Contact information ArcelorMittal Investor Relations | |
| General | +44 20 7543 1128 |
| Retail | +44 20 3214 2893 |
| SRI | +44 20 3214 2801 |
| Bonds/Credit | +33 171 921 026 investor.relations@arcelormittal.com |
| Contact information ArcelorMittal Corporate Communications | |
| Paul Weigh Tel: E-mail: | +44 20 3214 2419 press@arcelormittal.com |
FAQ
What is AM/NS India's current steelmaking capacity and expansion target for 2026?
How much cash has AM/NS India generated since its acquisition in 2019?
What is AM/NS India's long-term capacity goal for its Hazira plant?
What is ArcelorMittal's (MT) sustainability target for AM/NS India?
