ArcelorMittal and Nippon Steel to Add 2nd Continuous Galv Line at I/N Kote
04/17/2008 - ArcelorMittal and Nippon Steel announce plans to double galvanized production capacity at their I/N Kote joint venture with the addition of a new $240-million continuous galvanizing line.
ArcelorMittal is expanding its joint venture partnership with Nippon Steel Corp. with the construction of a new continuous galvanizing line (CGL) at the I/N Kote facility in New Carlisle, Ind.
The new CGL—an approximately $240-million investment—will have an annual capacity of 480,000 tons (540,000 short tons), which will double I/N Kote's current galvanized production capacity. Cold-rolled coils for the new line will be supplied by ArcelorMittal's Indiana Harbor and Burns Harbor operations as well as ArcelorMittal and Nippon Steel's other joint venture at I/N Tek.
According to the companies, the new line will offer high-grade, high-quality coated sheets that promote improved safety and fuel efficiency in automobiles.
"This is truly an exciting investment and one that will ensure ArcelorMittal and Nippon Steel maintain our leadership position in supplying the North American automotive industry with high-quality steels," said Michael Rippey, President and CEO of ArcelorMittal USA.
Founded in 1991 as a 50-50 joint venture between ArcelorMittal and Nippon Steel, I/N Kote currently produces 450,000 tons (500,000 short tons) of hot-dip galvanized and galvannealed sheet and 410,000 tons (450,000 short tons) of electrogalvanized sheet annually.
“ArcelorMittal is proud of the success demonstrated by our existing J/V relationship at I/N Tek and I/N Kote," said Rippey, “and we look forward to the future success of this new automotive coating line. Additionally, this investment reflects our confidence in the growing partnership between the United Steel Workers and ArcelorMittal to continuously improve every day and meet increasing customer demands."
Regarding the Arcelor-Nippon Steel strategic-alliance-related agreements, ArcelorMittal and Nippon Steel have agreed among other provisions that Arcelor's rights and obligations are to be assumed by ArcelorMittal.
Groundbreaking for the new continuous galvanizing line is expected to take place later this year with completion slated for late 2010.
ArcelorMittal is the world's largest and most global steel company, with 310,000 employees in more than 60 countries. The company leads a number of major global markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, as well as sizeable captive supplies of raw materials and outstanding distribution networks. An industrial presence in 28 European, Asian, African and American countries exposes the company to key steel markets, from emerging to mature, positions it will be looking to develop in the high-growth Chinese and Indian markets.
ArcelorMittal’s key financials for 2007 show revenues of USD 105.2 billion, with a crude steel production of 116 million tonnes, representing around 10% of world steel output.
