ArcelorMittal has completed the acquisition of Essar Steel India Ltd., and simultaneously established a joint venture with Nippon Steel Corp., called ArcelorMittal Nippon Steel India Ltd. (AM/NS India), which will own and operate Essar. ArcelorMittal holds 60% of AM/NS India, with Nippon Steel holding the balance.

Aditya Mittal, president and CFO of ArcelorMittal, has been appointed chairman of AM/NS India, and Dilip Oommen has been appointed AM/NS India’s CEO.

“The acquisition of Essar Steel is an important strategic step for ArcelorMittal,” said Lakshmi Mittal, chairman and CEO of ArcelorMittal. “India has long been identified as an attractive market for our company and we have been looking at suitable opportunities to build a meaningful production presence in the country for more than a decade.”

Mittal said Essar has sizeable, profitable, well-located operations and the potential for long-term growth for the Indian economy is well-known.

“We are also delighted to be embarking on this together with Nippon Steel, with whom we have a trusted, long-term relationship,” Mittal said. “Our combined strengths and technology will bring many new opportunities, which will allow us to make a positive contribution to India’s target to grow steelmaking capacity to 300 million metric ton per year (mt/y) by 2030, and for its manufacturing sector more broadly.”

AM/NS India manufactures flat steel, steel plates and steel pipes mainly at its integrated steel mill in India — one of the more promising steel markets in the world. The company also has a wide-ranging domestic sales network and manufacturing plants in east India producing pellets, a raw material of steel.

“Nippon Steel and ArcelorMittal will bring out AM/NS India’s potential by providing it with their respective business experience and world-leading advanced technologies, so as to promptly implement the resolution plan and realize its further business expansion,” said Eiji Hashimoto, representative director and president of Nippon Steel. “For years, Nippon Steel has been making direct investments in many countries, including Brazil, the United States, China and ASEAN countries, in areas where we can take advantage of our advanced technology contributing steadily to the industrial development and the enhancement of the self-sufficiency in each host country. We will strive to establish a prominent presence in India, conforming with its policy to increase domestically produced steel products.”

AM/NS India’s current level of annualized crude steel production is approximately 7.5 million mt. It also has iron ore pellet facilities in the east of India, with current annual capacity of 14 million mt/y.