India’s leading steel maker ArcelorMittal Nippon Steel India has concluded a transaction to acquire two port assets and a power plant from the Essar Group for a net value of approximately INR 16,500 crore having received requisite corporate and regulatory approvals. ArcelorMittal Nippon Steel India Chief Executive Officer Mr Dilip Oommen said “This transaction marks a major milestone in our ongoing efforts to strengthen AM/NS India’s energy and logistics supply chain. Owning these strategically located assets also supports our recently announced decision to proceed with a Rs 60,000 crore capacity expansion plan at Hazira, including the ability for AM/NS India to realize additional synergies from rising throughput at the port assets in both Gujarat and Odisha”. This transaction, fully funded by AM/NS India, follows an August 2022 agreement with Essar to acquire several power and infrastructure assets that are either captive or allied to AM/NS India’s operations and will strengthen the strategic integration of the company’s manufacturing and logistics chain. The following cash generating assets are now wholly owned and operated by AM/NS India and are expected to generate operational synergies for the company immediately • A 25 MTPA jetty at the all-weather, deep draft bulk port terminal at Hazira, Gujarat, captive and adjacent to AM/NS India’s flagship steel plant. • A 12 MTPA deep-water jetty at Paradip, Odisha along with a dedicated conveyor that handles 100% of pellet shipments from AM/NS India’s Paradip pellet plant. • A 270 MW multi-fuel power plant at Hazira, which has a long-term power purchase agreement with AM/NS India’s adjacent steel plant. Acquisitions of the remaining assets included in the August 2022 are expected to515 MW gas based power plant at Hazira16 MTPA all-weather deep draft terminals at Visakhapatnam100 KM Gandhar Hazira transmission line
India’s leading steel maker ArcelorMittal Nippon Steel India has concluded a transaction to acquire two port assets and a power plant from the Essar Group for a net value of approximately INR 16,500 crore having received requisite corporate and regulatory approvals. ArcelorMittal Nippon Steel India Chief Executive Officer Mr Dilip Oommen said “This transaction marks a major milestone in our ongoing efforts to strengthen AM/NS India’s energy and logistics supply chain. Owning these strategically located assets also supports our recently announced decision to proceed with a Rs 60,000 crore capacity expansion plan at Hazira, including the ability for AM/NS India to realize additional synergies from rising throughput at the port assets in both Gujarat and Odisha”. This transaction, fully funded by AM/NS India, follows an August 2022 agreement with Essar to acquire several power and infrastructure assets that are either captive or allied to AM/NS India’s operations and will strengthen the strategic integration of the company’s manufacturing and logistics chain. The following cash generating assets are now wholly owned and operated by AM/NS India and are expected to generate operational synergies for the company immediately • A 25 MTPA jetty at the all-weather, deep draft bulk port terminal at Hazira, Gujarat, captive and adjacent to AM/NS India’s flagship steel plant. • A 12 MTPA deep-water jetty at Paradip, Odisha along with a dedicated conveyor that handles 100% of pellet shipments from AM/NS India’s Paradip pellet plant. • A 270 MW multi-fuel power plant at Hazira, which has a long-term power purchase agreement with AM/NS India’s adjacent steel plant. Acquisitions of the remaining assets included in the August 2022 are expected to515 MW gas based power plant at Hazira16 MTPA all-weather deep draft terminals at Visakhapatnam100 KM Gandhar Hazira transmission line
