ArcelorMittal and five other steelmakers have announced plans to invest up to $30 billion to build plants in the south Indian state of Karnataka. ArcelorMittal, the world’s largest steelmaker, will invest $6 billion to construct a facility with an annual capacity of 6 million metric tons. Korean steelmaker Posco plans to invest $6.8 million for another steel plant in Karnataka. Other companies that have scheduled investments in the southern state include JSW Steel Ltd., Bhushan Steel Ltd., Essar Steel and Adhunik Metaliks Ltd. In addition, India’s largest iron-ore producer, NMDC Ltd., plans to set up a 5-million-metric-ton facility.

The state of Karnataka has estimated reserves of 11% of India’s hematite iron ore, which is used to make steel. The demand for steel in the nation rose 7.6% last year, and steel consumption is predicted to grow 9% this year. The state’s government will acquire 5,000 acres of land for ArcelorMittal’s facility.