ArcelorMittal Nippon Steel India drives cost efficiencies to yield significant financial savings

ArcelorMittal Nippon Steel India (AM/NS India) – a joint venture between ArcelorMittal and Nippon Steel, two of the world’s leading steelmakers – reported financial savings of ₹ 2,900 crore for the calendar year 2023, attributing the savings to the systematic implementation of its continuous improvement program. 

This program, a key component of AM/NS India’s commitment to continuous business improvement, focuses on process optimisation, workplace safety, and EBITDA-oriented cost improvement initiatives while introducing structural changes overseen by a dedicated steering committee and a cross-functional team.

Wim Van Gerven – Director and Vice President (Operations) at ArcelorMittal Nippon Steel India (AM/NS India), says, “Through comprehensive reviews and collaborative efforts, AM/NS India has identified opportunities to streamline operations and reduce costs. Notably, automation and mechanisation have been introduced in areas previously deemed accident-prone and high-risk for employees, contributing to enhanced workplace safety measures.”

To promote continuous improvement, AM/NS India encourages all employees to actively contribute to identifying areas for enhancement, spanning workplace safety, operational efficiency, productivity, asset reliability, cost reduction, and digitalisation of core services.

In addition to financial gains, AM/NS India also actively initiated sustainability initiatives, achieving continual carbon reduction and energy savings.

Key components of the continuous improvement program include:

• Technology and Automation: Significant investments in cutting-edge technology and automation to enhance overall productivity. Automation, particularly in accident-prone areas, has been introduced to reduce employee risks.

• Infrastructure Enhancement: The expansion of port capabilities at Hazira, Gujarat, aims to optimise shipping and logistics, improving port efficiency, reducing turnaround times, and optimising the overall logistics chain.

• Digitalisation of supply chain: Real-time tracking and analytics integrated into logistics operations optimise routes, reduce transit times, and provide enhanced visibility across the supply chain.

• Diversified Product Mix: In response to evolving market demands, AM/NS India has prioritised a diversified product mix, introducing new products and variants. Additionally, significant emphasis on value-added goods has enhanced market competitiveness. 

Referring to upcoming plans, VanGerven underscored, “Our pursuit of excellence doesn’t stop here. As we look towards the future, we remain focused on digital transformation and automation, leveraging technology to improve efficiency, transparency, and customer engagement. This ongoing commitment aims to strengthen our competitive edge with a brand promise – ‘Smarter Steels, Brighter Futures’ and ensure sustained success in the ever-evolving market landscape.”