ArcelorMittal to Process Automotive Strip in China
Joint venture will produce cold-rolled and coated strip
Joint venture will produce cold-rolled and coated strip
ArcelorMittal has established a joint-venture in China’s Hunan province to process carbon steel into automotive strip products , an investment reported to be valued at $729-million. The world’s largest steelmaker has been mostly unsuccessful in previous attempts to acquire or establish steelmaking capacity in China, but it will control 33% of the 1.2 million tons/year cold-rolling, galvanizing, and galvannealing operation.
No start-up date has been reported for the operation, which will serve China’s domestic auto industry.
Other partners in the venture will be the Hunan Valin Group (33%) and Hunan Valin Steel Co. (34%), the latter of which will supply hot-rolled strip to the new operation. ArcelorMittal is a minority investor in one of Hunan Valin Group’s other subsidiaries, Hunan Valin Steel Tube & Wire.
Valin is China’s tenth-largest steelmaker, producing 11.12 million metric tons hot-rolled coils, plate, seamless pipe, and wire rod products in 2007.
Lakshmi Mittal, chairman and CEO of ArcelorMittal stated: “We have been working closely together with Hunan Valin Steel Co. for three years now and the cooperation is going very well. We are making a lot of progress and the signing of these joint venture contracts is only further proof of this. This automotive joint venture is part of our global and China strategy, aiming to better serve both our global as well as domestic automotive clients by offering high-value added products with the support of ArcelorMittal technology.”
No start-up date has been reported for the operation, which will serve China’s domestic auto industry.
Other partners in the venture will be the Hunan Valin Group (33%) and Hunan Valin Steel Co. (34%), the latter of which will supply hot-rolled strip to the new operation. ArcelorMittal is a minority investor in one of Hunan Valin Group’s other subsidiaries, Hunan Valin Steel Tube & Wire.
Valin is China’s tenth-largest steelmaker, producing 11.12 million metric tons hot-rolled coils, plate, seamless pipe, and wire rod products in 2007.
Lakshmi Mittal, chairman and CEO of ArcelorMittal stated: “We have been working closely together with Hunan Valin Steel Co. for three years now and the cooperation is going very well. We are making a lot of progress and the signing of these joint venture contracts is only further proof of this. This automotive joint venture is part of our global and China strategy, aiming to better serve both our global as well as domestic automotive clients by offering high-value added products with the support of ArcelorMittal technology.”
