ArcelorMittal Nippon Steel India (AM/NS India) has commissioned a scrap processing facility at its manufacturing site in Khopoli, Maharashtra, with an annual processing capacity of 120,000 tonnes. The unit is the first of four planned facilities under a INR 3.5 billion investment programme aimed at improving domestic scrap availability and reducing production costs.
The company intends to enhance steel production efficiency by integrating high-quality scrap material into its operations. The Khopoli unit follows a pilot project focused on processing scrap at scale, targeting demand from sectors such as automotive and shipping. AM/NS India’s initiative is also aligned with its broader decarbonisation roadmap, which aims to increase the share of scrap in its steel production mix to over 10% by 2030, up from the current level of 3–5%.
According to AM/NS India, 65% of its existing steelmaking capacity operates using the Direct Reduced Iron (DRI) – Electric Arc Furnace (EAF) route, which is compatible with processed scrap use.
Akshaya Gujral, Executive Director of Downstream Operations at AM/NS India, said, “India aims to increase the share of scrap metal in steel production to 50% by 2047. The steel sector has an important role in developing the infrastructure and ecosystem to support this ambition. Our Khopoli unit, and others that will come on stream this year, will support the formalisation of the domestic scrap industry, service growing customer demand for recycled steels, and contribute to India’s sustainability goals.”
AM/NS India’s scrap strategy is positioned to align with regulatory changes including the Vehicle Scrappage Policy, Extended Producer Responsibility norms set to take effect in April 2025, and the Green Steel Taxonomy, all of which are expected to influence domestic scrap supply dynamics.