The Odisha state government has approved ArcelorMittal Nippon Steel (AMNS) India’s INR 1.02 lakh crore ($13 billion) investment into a 24 million tonnes/year capacity integrated steel plant in Kendrapara.

The plant, which will also produce up to 18.75m t/y of cement, will be completed in seven years in phases, and employ 16,000 workers. AMNS India will also develop a downstream industry park to promote micro, small and medium enterprises, and support import substitution, the office of Odisha chief minister Naveen Patnaik says in a note seen by Kallanish.

AMNS India also aims to increase production capacity at its existing Hariza plant to 15m t/y, from the existing 8.6mt. In comments to media last week, ArcelorMittal chief executive Aditya Mittal emphasised cost competitiveness efforts during the capacity expansions. “We must consistently strive for stable and cost-effective steelmaking operations,” he said. “Real progress has already been made here, with the commencement of mining operations in Odisha. Also, with the commissioning of a second pellet plant at Paradeep, and strong progress is being made with the debottlenecking project at Hazira.”

The executive stressed building a portfolio of value-added products for stronger financial returns and aims for AMNS India to be a leader in sustainable development.

“The significant, unforeseen disruptions of the past 20 months have not dented that ambition, nor materially hindered our progress. Our business is very strong, our focus on health and safety remains our priority,” the executive concluded.