AMSTERDAM: ArcelorMittal signed a memorandum of understanding (MOU) with the Japan Bank for International Cooperation (JBIC) to strengthen their partnership in steelmaking and decarbonisation.
The signing of the MOU between ArcelorMittal and JBIC builds on their existing business relationship, which includes JBIC’s financing in support of ArcelorMittal’s joint ventures with Nippon Steel Corporation in India and the United States, and foresees the parties cooperating to develop business opportunities with Japanese companies involved in steelmaking, including in low-carbon steelmaking technologies.
As Japan’s policy-based financial institution, part of JBIC’s role is to contribute toward creating business opportunities for Japanese companies by facilitating cooperation with international partners.
ArcelorMittal announced that AMNS Luxembourg Holding S.A., the parent company of AM/NS India, the Company’s 60/40 steelmaking joint venture with Nippon Steel Corporation in India, has entered into a $5 billion loan agreement with the Japan Bank for International Cooperation (JBIC), MUFG Bank, Ltd., Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, Limited, Mizuho Bank, Ltd., Mizuho Bank Europe N.V..
The proceeds obtained through the Japan Bank for International Cooperation (JBIC) co-financing loan will be used to finance the expansion of AM/NS India’s annual steelmaking capacity at its Hazira plant from 9 million tonnes to 15 million tonnes.
In addition to the primary steelmaking capacity expansion, the project includes the development of downstream rolling and finishing facilities that will enhance AM/NS India’s ability to produce value-added steels for sectors including defence, automotive and infrastructure. The expansion project, which started in October last year upon receipt of environment permitting, will create more than 60,000 jobs.
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