ArcelorMittal Nippon Steel India (AM/NS India) has announced the commissioning of its first scrap processing facility at its Khopoli manufacturing unit in Maharashtra. The state-of-the-art facility, with a capacity of 120,000 tonnes per annum, marks a significant milestone in the company’s efforts to formalise India’s fragmented domestic scrap supply chain. This is the first of four such units planned by AM/NS India across the country, as part of a ₹350 crore investment aimed at strengthening the supply of high-quality scrap for steel production and meeting growing market demand.
India’s scrap metal industry is highly fragmented, with materials often passing through multiple intermediaries before reaching steel producers. This not only inflates costs but also impacts the quality of the scrap, which in turn affects the overall efficiency and sustainability of the steel production process. AM/NS India aims to address these challenges by processing scrap in-house, which will improve both material quality and yield while simultaneously reducing conversion and logistics costs. This move will also help to streamline the domestic scrap supply chain, offering greater transparency and cost-effectiveness. The launch of the Khopoli facility follows a successful pilot project to process scrap at scale, which demonstrated the company’s capability to meet rising demand for recycled steel across its customer base. This includes industries such as automotive manufacturing and shipbuilding, which are increasingly turning to recycled steel as part of their sustainability efforts. Additionally, government initiatives such as the Vehicle Scrappage Policy (2021) and the Extended Producer Responsibility (EPR) norms, which are set to come into effect in 2025, are expected to further increase the availability of domestic scrap, providing AM/NS India with more opportunities to tap into this growing resource.
An official spokesperson from AM/NS India highlighted that the steel industry has a vital role to play in developing the infrastructure needed to meet India’s sustainability goals, particularly in achieving a target of 50% scrap-based steel production by 2047. The spokesperson explained that the company’s commitment to sustainability is reflected in its long-term strategy, which includes increasing the use of scrap in steelmaking. AM/NS India aims to raise its scrap mix in steel production from the current 3-5% to over 10% by 2030, marking a significant step towards a more circular and environmentally-friendly production process. The Khopoli unit is the first in a series of four scrap processing plants planned by AM/NS India, all of which will help to increase the company’s capacity to use high-quality scrap in its steel production. The company’s existing steelmaking capacity already utilises a significant portion of the gas-based Direct Reduced Iron (DRI) – Electric Arc Furnace (EAF) route, which is particularly well-suited to process scrap efficiently. With the addition of these new facilities, AM/NS India is positioning itself as a key player in the growing market for recycled steel, aligning with the global trend of increasing sustainability and reducing reliance on primary raw materials.
As AM/NS India continues to develop its scrap processing capabilities, the company is also exploring innovative ways to integrate technology and automation into its operations. The goal is to further enhance the efficiency of scrap collection, sorting, and processing, ensuring that the highest quality material is available for steel production. In doing so, the company is not only improving its own operations but also contributing to the broader goal of creating a more sustainable and efficient scrap industry in India. The commissioning of the Khopoli facility is just the beginning of AM/NS India’s journey towards a more sustainable and efficient steel industry. As the company continues to invest in recycling and scrap processing, it is expected to play a pivotal role in shaping the future of steel production in India, driving both economic growth and environmental sustainability.
