NLMK to manufacture CRGO steel in Maharashtra, covering 20% of India's need for the product
NLMK intends to manufacture Cold Rolled Grain Oriented(CRGO) steel with low magnetic core losses, with a production capacity of 64 KTPA in Maharashtra, India by bringing a larger portion of the value chain to the country and realising cost benefits by mitigating the impact of the current import duty (will serve 22% of India’s current need for electrical grade of steel). The company has invested $ 85 million and will directly employ 150 highly qualified personnel and 1000+ personnel indirectly.
NLMK is one of the world leaders in the production of Electrical Steel and has patented its manufacturing process. Their India facility will be the second in the country to be operated by a foreign company. They intend to expand the product's value in India through additional expansion phases which will depend on the development of the market. Invest India advised the client on locations across Maharashtra, Gujarat and Orissa for market entry and go-to-market strategy. Invest India conducted extensive research and sent detailed site analyses as requested by the client. It also organised meetings with stakeholders, including state government senior officials in all states. Invest India has also assisted the company in active conversations with the Ministry of Steel and BIS in preparation for their operations. The plant's construction has been completed to an 80 per cent level, with expected commissioning in Q3 2022.