ArcelorMittal Nippon Steel India (AM/NS India) has launched its first scrap processing facility at its Khopoli site in Maharashtra, with a capacity of 120,000 tons per year. This is the first of four units planned nationwide under an INR 350 crore (USD 41 mln) investment to meet the growing demand for high-quality scrap and strengthen domestic supply chains.
India’s scrap supply chain is fragmented, inflating costs and reducing material quality. By processing scrap at its own facilities, AM/NS India aims to improve material quality, boost yield, and lower costs, while formalizing the industry.
The Khopoli facility, following a successful pilot, will help meet rising demand for recycled steel, particularly from automotive manufacturers and ship operators. Government policies, including the Vehicle Scrappage Policy and Extended Producer Responsibility (EPR) norms, are expected to further boost domestic scrap supply.
As part of its decarbonization strategy, AM/NS India plans to increase its scrap usage in steelmaking to over 10pct by 2030, up from 3-5pct today. The company already uses a gas-based Direct Reduced Iron (DRI), Electric Arc Furnace (EAF) process for 65pct of its steelmaking, which is ideal for utilizing processed scrap.
AM/NS India, a joint venture between ArcelorMittal and Nippon Steel, is a leading steel producer in India with a crude steel capacity of 9 mln tons per year and a pellet capacity of 20 mln tons.