Mittal’s letter to the employees mentioned, “Covid has in no way dampened the long-term potential we see for AM/NS India. India is a growing, resilient economy and it will bounce back – of this I have no doubt. Over the last year, I have become even more convinced about the potential, because I know the company and its assets better, but really because I know you, the people better.”
Amid a “challenging” year, what Mittal said, was more than could have been imagined when the deal was completed, AM/NS recorded a strong operational and financial performance.
There was a slowdown following the March lockdown, but with the easing of lockdown measures, full production levels were achieved by mid-May; in November, AM/NS managed to set a new monthly production record.
On the sales and marketing side, the national network of retail outlets, Hypermart, was extended, and two new high-strength steel brands, Stallion and Maximus, were launched.
The long-term production target of 12-15 million tonnes of annual output still stand, Mittal said.
“In the short-term, the focus will be on debottlenecking our existing operations so we can increase annual production to around 8.5 million tonnes. We are currently working on further growing our production, and I expect, we will be able to provide some further details on how we plan to do this next year,” Mittal said.
At the time of acquisition, AM/NS India had a crude steel production
of 7.5 million tonnes. Mittal, however, pointed out that while scale was important, there were several other areas to focus on and many opportunities to explore.
From a commercial perspective, the plan was to develop downstream capabilities, improve capacity to produce higher-added value auto products as well as introducing other high-value products from the ArcelorMittal range.
Mittal believed, in this area, AM/NS India could draw in benefits from its parent companies, ArcelorMittal and Nippon Steel.
“When it comes to technological prowess, innovation and R&D, I truly, believe our capabilities are unmatched in the global steel industry. This provides AM/NS India with a real competitive advantage and a powerful tool to draw on as we implement the strategy to achieve our vision of becoming a new type of steel company for India,” he added.