Arcelor, Baosteel and Nippon Steel recently celebrated the opening of their automotive steel sheet joint venture, Baosteel-NSC/Arcelor Automotive Steel Sheet Co., Ltd. (BNA) in Shanghai.

The new joint-venture company combines secure access to hot rolled coils from Bao Steel and Nippon Steel as with leading-edge technology for automotive steels from Arcelor and Nippon Steel.

Established in July 2004, Baosteel-NSC/Arcelor Automotive Steel Sheet started test production at the end of 2004. The plant, which represents an investment of USD $800 million and employs 650 people, has an annual production capacity of 1.7 million tonnes of flat carbon steel, mainly for automotive applications. It is located next to Bao Steel's upstream production facilities and comprises both cold rolling and galvanizing operations. Products include cold rolled steel, galvannealed steel and pure zinc galvanized steel. The two galvanizing lines will have a combined capacity of 800,000 tonnes per year.

The first of the two galvanizing lines was put into production at the end of March 2005 and the second one at the end of June, ahead of schedule in both cases. Ramp-up is proceeding according to plan and the plant is to reach its full production capacity in 2006.

"This joint venture with our partners Bao Steel and Nippon Steel allows us to seize the growth opportunities offered by the Chinese auto market and to serve our global automotive customers who are active in this growth market." said Arcelor CEO Guy Dollé, adding: "This is the first plant in China to supply this sort of high grade automotive steel sheet. Moreover, this venture also strengthens the Global Strategic Alliance Arcelor has established with Nippon Steel".

For Arcelor, world leader in automotive steel, this joint venture is one more step in its strategy of establishing a global network of high-end automotive galvanizing lines, already present in countries such as Brazil, Canada, Russia, Turkey and India, meeting the needs of its global clients.

Arcelor is a leading player of the global steel industry, holding leading positions in its main markets: automotive, construction, household appliances and packaging as well as general industry. The company — number one steel producer in Europe and Latin America — endeavors to further expand internationally in order to capture the growth potential of developing economies and offer technologically advanced steel solutions to its customers. Arcelor employs 94,000 associates in over 60 countries. The company places its commitment to sustainable development at the heart of its strategy and ambitions to be a benchmark for economic performance, labor relations and social responsibility.