Steel quality is paramount in the construction equipment industry, and ArcelorMittal Nippon Steel India (AM/NS India) is leading the charge in producing high-tensile, abrasion-resistant steel indigenously. With their state-of-the-art flagship plant in Hazira, Gujarat; AM/NS India is ensuring a sustainable, high-quality steel supply to meet the evolving needs of New India’s domestic market.

Could you shed light on the importance of steel quality, especially in the construction equipment industry?  
If you are familiar with the construction equipment industry, especially in India, you know that we heavily rely on specialised steel for components like excavator buckets and their teeth. Tensile strength and abrasion resistance are critical factors for such applications. Until now, much of this speciality steel had to be imported from countries like South Korea, Japan, and parts of Europe. However, at AM/NS India, we have achieved import substitution for this critical steel.

At our flagship plant in Hazira, Gujarat, we have one of the world’s benchmark heavy plate mills. This mill produces quenching and tempered varieties of steel, which are necessary for making abrasion-resistant and high-technology steel essential for construction equipment. Not many companies can manufacture this globally, but we have mastered this process and provide solutions to our customers right here in India.

We are expanding our capacity at Hazira. Our new hot strip mill, set to be operational next year, will be one of India’s widest hot strip mills, producing finished products up to 2150 mm wide. This will allow us to offer thinner varieties of steel, which are also in high demand for construction equipment.

We are the only steel company in the country capable of providing the full product range for construction equipment manufacturers in size and grade. This is why we are a preferred supplier for many customers. They do not need to source from multiple suppliers; we can offer the entire solution.

We also encourage our clients to use our steel to meet their domestic needs and export construction equipment. This creates jobs and adds value to India’s economy.

How are you addressing the need for thinner and stronger steel for industries like train manufacturing?
We are actively working on that. Through value engineering with our clients, we have replaced non-high-tensile materials with high-tensile steel from our strip mill, such as 500MC and 700MC. This has been a major success, with many clients awarding us for our innovations. The feedback from the market has been overwhelmingly positive, as we provide complete solutions that enhance their products.

Can you elaborate on your sustainability efforts, especially considering the industry’s shift towards ESG initiatives?
Sustainability is at the core of our operations. We have published our sustainability report and are significantly ahead of our competition in carbon emissions per ton of steel produced. Currently, 60-65 percent of our steel production is gas-based, which gives us a considerable edge over other companies in India. Our parent company is also a global leader in sustainability, and we are proud to follow their lead in this important area.

We use significant scrap in our steelmaking process, which is part of our circular economy efforts. Recycling is our key focus, and we continue to innovate in this area to reduce our environmental impact.

How significant is the construction equipment segment for your business?
It is essential. We feel a great responsibility to innovate and enhance our products to ensure our customers stay ahead in their respective markets. The construction equipment sector is a key driver for value-added steel, and we leverage our global technological advancements to stay at the forefront of innovation in this space.

In India, construction and infrastructure represent about 62-63% of the total steel demand. Infrastructure and construction-related products in our portfolio contribute to around 40-50 percent.

What kind of growth do you anticipate in the coming years for this sector?
With the Indian government’s strong focus on infrastructure development, we expect significant growth. The upcoming state and central budgets are expected to provide additional momentum for this sector, which will continue to be a primary driver of the Indian economy.

You have showcased products like Rockstar and Tufmax. Could you explain their applications?
Rockstar is our abrasion-resistant steel designed for high-wear applications like excavator buckets. Tufmax is a high-tensile steel used in applications like booms and other critical structural components in construction equipment. These branded steels are tailored to meet the diverse demands of the construction equipment sector.

The presence of unorganised players in the steel sector poses a challenge. What is your perspective on this?
The unorganised sector is indeed a challenge. Its lack of quality control and process discipline can lead to substandard products. In contrast, the organised sector invests heavily in maintaining strict quality norms. For example, building a one-million-ton capacity in the organised sector requires about $1 billion in investment. The unorganised sector operates at much lower investment levels, and the quality of its output often suffers.

We have seen the consequences of this, such as bridge collapses in Bihar and UP, where substandard steel was used. While the cheaper steel from unorganised players may seem appealing initially, it poses serious long-term risks. If India aims to become a developed country by 2047, we must focus on producing high-quality steel that matches global standards.

What role do government policies play in supporting the steel industry, and what additional support would you like to see?
Government policies have been supportive, particularly in driving infrastructure development, which fuels steel demand. However, we still need additional policy measures to encourage investment in steel capacity expansion and modernisation. The industry is in a capital-intensive phase, and support from the government can accelerate growth and help India meet its long-term development goals.