AM/NS India commissions first dedicated scrap processing facility

Mumbai/ Khopoli/ Delhi, March 27, 2025 – ArcelorMittal Nippon Steel India (AM/NS India) has
commissioned its first scrap processing facility at its Khopoli manufacturing site in Maharashtra, with
an annual capacity of 120 kilo tonnes per annum (KTPA). The Khopoli unit is the first of four scrap
processing units being developed by AM/NS India nationally as part of a ₹350 crore investment
programme to meet the growing demand for high-quality scrap for its steel production and
strengthen domestic scrap supply chains.
India’s scrap supply chain is currently highly fragmented, with materials passing through multiple
intermediaries – from local scrap collectors to scrapyards – before reaching the consumption points.
This complex process inflates costs, diminishes material quality and adds little value across the
chain. By processing scrap at its own facilities, AM/NS India is enhancing material quality and yield
while reducing conversion and logistics costs, all while formalising the scrap industry.
The commissioning of the Khopoli unit and the larger rollout follows a successful pilot project to
process scrap at scale, important to meet the rising demand for recycled steels across AM/NS
India’s wide customer base, including automotive manufacturers and ship fleet operators.
Government initiatives such as the Vehicle Scrappage Policy (2021), Extended Producer
Responsibility (EPR) norms – set to take effect in April 2025 – and the Green Steel Taxonomy are
also expected to boost domestic scrap availability. AM/NS India’s growing scrap processing
capacity will support national efforts to strengthen domestic scrap availability and supply chain
efficiency.
Akshaya Gujral, Executive Director of Downstream Operations at ArcelorMittal Nippon Steel
India (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.”
As part of a decarbonisation roadmap set out in its inaugural Climate Action Report in 2024, AM/NS
India aims to increase scrap mix in steelmaking capacity to over 10% by 2030 (from 3-5% today).
The company is strategically integrating high-quality scrap into its production, with 65% of its
existing steelmaking capacity operating on the gas-based Direct Reduced Iron (DRI) – Electric Arc
Furnace (EAF) route, a process particularly well-suited for utilising processed scrap.