Industry

AMNS India our most significant JV, said parent Arcelor Mittal as company reports record profit

ArcelorMittal Nippon Steel (AMNS) India reported a 21% sequential dip in operating profits as a dip in steel prices and higher input costs ate into the margins. However, the company reported a record performance for complete year 2021, as per a presentation from parent ArcelorMittal.

“The most significant of our JV and Associate assets is our 60% equity interest in AMNS India,” an ArcelorMittal presentation read. The company achieved record levels of production, shipments, and EBITDA during the year, it said.

ArcelorMittal follows a January-December financial cycle, reports The Economic Times.

“This is a competitive asset, in a high growth market. Our plans to reinvest the cash being generated at AMNS India’s to fund its capacity expansion is expected to create significant value for ArcelorMittal shareholders,” the presentation further read.

The India unit of the multinational steel major reported earnings before interest, tax, depreciation and amortisation (EBITDA) of $435 million (Rs 3,270 crore) during the December quarter, down 21% sequentially but up 59% year-on-year. Steel production dipped 2.3% sequentially to 1.8 million tonnes.

For the complete year 2021, EBITDA grew by 186% to almost $2 billion (Rs 15,000 crore). The company has a net debt of $3.4 billion, down from $4.2 billion a year ago.

AMNS India has plans to debottleneck operations and achieve capacity of 8.8 million tonnes per annum (mtpa) with further plans of increasing it to 14 mtpa in the medium term. The eventual plan is to produce 18 mtpa of steel from the Hazira plant.

The company has also signed a memorandum of understanding with the Odisha state to set up an integrated steel plant with a 12-mtpa capacity in the Kendrapara district.

Source: United News of Bangladesh