New Joint Venture with ArcelorMittal starts up in the U.S.A.
Feb. 27, 2014
Nippon Steel & Sumitomo Metal Corporation
New Joint Venture with ArcelorMittal starts up in the U.S.A.
- Development and expansion of supply of automotive flat products in North America -
Nippon Steel & Sumitomo Metal Corporation ("NSSMC") and ArcelorMittal SA ("ArcelorMittal") agreed at the end of November 2013 with ThyssenKrupp AG ("TKAG") to purchase ThyssenKrupp Steel USA, LLC ("TKUS") owned by TKAG. In addition, NSSMC and ArcelorMittal agreed to operate TKUS as a 50/50 joint venture.
Having received all necessary regulatory approvals, NSSMC hereby announces that it has completed the acquisition of TKUS together with ArcelorMittal on February 26.
The new joint venture, together with I/N Tek (cold-rolled steel products) and I/N Kote (coated products) both of which are in the State of Indiana and which have demonstrated good track records with various customers for more than twenty years, will further enhance NSSMC’s capability to supply products to automotive customers in the U.S.A.
The Calvert site will serve the expanding automotive steel market in North America especially in southern areas of the U.S.A. The new joint venture will have capability to meet the growing needs, especially from Japanese car manufacturers, for ultra high tensile strength products with good formability, and hot-rolled steel products including high tensile strength grades, in addition to the current supply of cold-rolled steel and coated products produced at I/N Tek and I/N Kote. Also we will be able to realize further enhanced quality for cold-rolled steel and coated products through integrated production control starting from Hot Rolling process.
NSSMC has been adding production bases of automotive sheet to expand its global supply network for automotive customers in many areas in the world. With this new joint venture, we will be able to further strengthen the reliable capacity of production and supply of high-end automotive products in the U.S.A. to meet various customers’ needs.
[Outline of the JV]
(1) Location: Calvert, Alabama, U.S.A.
(2) Scope of the business:
Production and sales of hot-rolled steel, cold-rolled steel, and coated products
(3) Facilities/Capacities per annum:
Hot Strip Mill: approximately 5.3 million metric tons
Continuous Pickling Line: approximately 1.1 million metric tons
Pickling Line & Tandem Cold Rolling Mill: approximately 2.5 million metric tons
Continuous Annealing Line: approximately 0.6 million metric tons
Hot-dip Galvanizing Lines (in total): approximately 1.4 million metric tons
(4) Purchase price: US$1.55 billion
(5) Equity Ratio: NSSMC: 50%, AM: 50%
For inquiries, contact:
Public Relations Center, General Administration Div.
Tel: +81-3-6867-2146, -2135, -2147, -2977
