Arcelor and ThyssenKrupp Stahl — both leading global suppliers of steel for the automotive industry — have signed a multi-year Research & Development agreement to cooperate in the area of high manganese (TWIP/ Twinning Induced Plasticity) steels.

The new steel grades are to be used in the structural parts of car bodies such as the body-in-white or chassis. With their combination of extremely high strength and superior formability, the new steels target a weight reduction of more than 20% while simultaneously offering new opportunities to vehicle designers. The use of such products will enable car manufacturers to reduce fuel consumption and increase the crash safety of new vehicles

The first new high manganese steel product is to be made available to car manufacturers in 2006, and could be used in vehicle production as early as the following year. Continued joint R&D efforts will target development of further advanced TWIP steels in subsequent years.

The field of cooperation between the two companies encompasses joint research and development for the metallurgy, composition and processing of high manganese steels. The R&D work will be shared between teams at the laboratories of both companies. New intellectual property such as patents produced in the context of the program will be jointly owned by the two companies. The joint R&D program follows years of intensive research carried out separately by both partners in close cooperation with their respective automotive customers.

Production, as well as sales and marketing of the new class of steels will be carried out separately by the two companies.

Arcelor is a leading force in the transformation of the global steel industry. With a turnover of 25.9 billion euros and shipments of 40.2 million tonnes of steel in 2003, the company is a major player in all its main markets: automotive, construction, household appliances and packaging as well as general industry. Arcelor employed 98,000 employees at the end of 2003 in over 60 countries. The company places its commitment to sustainable development at the heart of its strategy and ambitions to become a benchmark for economic performance, labor relations and social responsibility in the world of steel.

ThyssenKrupp Steel is one of the world’s leading flat steel producers with an output of 17 million tonnes per year. In fiscal year 2002/2003 the company employed approximately 46,600 employees at more than 90 sites and achieved sales of 13.7 billion euros. ThyssenKrupp Stahl AG is part of the Carbon Steel Business Unit of ThyssenKrupp Steel. The company is the leading manufacturer of flat carbon steel in Germany, No. 2 in Europe and serves customers in over 80 countries. With its main location in Duisburg, Germany, the company operates further production sites in continental Europe and international joint ventures in China, among other places.