ArcelorMittal SA and its Indian steelmaking joint venture partner, Nippon Steel Corp, have secured a $5 billion loan deal from a consortium of Japanese lenders.

AM/NS India will utilise the loan to increase its steel production capacity at its Hazira plant in India from 9 million tonnes to 15 million tonnes. AM/NS India owns the Hazira plant, where ArcelorMittal has a 60% stake, and Nippon Steel has a 40% stake.

The expansion project will also include the development of downstream rolling and finishing facilities, enabling value-added steel products for various sectors, including defence, automotive, and infrastructure. The project is expected to create more than 60,000 jobs.

The Japanese banks providing the loan include Japan Bank for International Cooperation, MUFG Bank, Sumitomo Mitsui Banking Corp, Sumitomo Mitsui Trust Bank, Mizuho Bank, and Mizuho Bank Europe NV.

The loan agreement was entered into by AM/NS Luxembourg Holding SA, the parent company of AM/NS India. The company is committed to expanding its operations in India. It is confident that the loan will help it achieve its goal of becoming a leading player in the Indian steel industry.

The expansion project began in October last year after receiving environmental permitting. The project is a significant step towards meeting India’s growing demand for high-quality steel. ArcelorMittal and Nippon Steel are committed to supporting the country’s economic growth by developing their steel industry.

The loan from the Japanese banks will help the joint venture partners achieve their goal of expanding their operations in India and enhancing their ability to produce value-added steels for various sectors.