Steel Products
ArcelorMittal, Nippon Team Up to Rescue Essar Steel India
Written by Tim Triplett
March 2, 2018
ArcelorMittal (AM) and Nippon Steel & Sumitomo Metal Corp. (NSMMC) have teamed up to acquire and operate financially troubled Essar Steel India Ltd. (ESIL). The joint venture is still subject to regulatory approval.
ESIL operates one of India’s largest integrated mills with annual capacity of 10 million tons. It manufactures hot rolled, cold rolled and galvanized steel products in flat roll, plates and pipes, which are sold through its domestic sales channels. It also owns an iron ore mine in eastern India. The company is in bankruptcy proceedings.
ArcelorMittal and NSSMC have experience with other alliances in the United States, including the joint management of I/N Tek (cold-rolled steel products) and I/N Kote (coated steel products) in Indiana, as well as AM/NS Calvert (hot-rolled, cold-rolled, and coated steel products) in Alabama. Based on the success of their past joint ventures, ArcelorMittal’s track record of rebuilding companies and its substantial market knowledge of India, the partners believe they will be able to turn around ESIL and transform it into a competitive steel business.
The joint venture views India as one of the most promising steel markets in the world. NSSMC had been seeking opportunities to engage in integrated steel production in India to capitalize on the nation’s medium and long-term growth potential, and to reinforce its global supply network.
{loadposition reserved_message}
Tim Triplett
Read more from Tim TriplettLatest in Steel Products
US CR tags ease, premium over imports still high
Offshore cold-rolled (CR) coil prices remain much less expensive than domestic product, even as domestic prices have slipped to a six-month low, according to SMU’s latest check of the market.
Steel imports strengthen through April licenses
March 2024 represents the third highest monthly steel import rate seen over the prior year.
Active rig counts mixed entering May
Drilling activity declined in the US but increased in Canada, according to the latest data from Baker Hughes.
AISI: US steel shipments slip y/y in March
US steel mill shipments dropped in March on-year but were up from February, according to the most recent figures from the American Iron and Steel Institute (AISI).
Northwest Pipe profits soar in first quarter
Northwest Pipe’s profits more than doubled in the first quarter on-year, as the company expects a strong remainder of the year in both its steel pressure pipe and precast segments.