Deferral of construction of a new CGL at I/N Kote

Nippon Steel Corporation, together with ArcelorMittal, has already started construction of a new continuous galvanized line (the “New CGL”) at I/N Kote, Indiana, U.S.A., to double its production capacity of hot dip galvanized (HDG) steel sheets for automotive use. Taking into consideration the current sudden downturn of the North American Automotive market, both companies have agreed on deferral of construction of the New CGL until such time when the partners will gain a perspective of recovery of the North American Auto production.

Both Nippon Steel and ArcelorMittal share the same view that the North American automotive steel sheet market is one of the most important markets for which mid and　long term growth are expected. Accordingly both partners adhere to their basic policy that they should enhance their presence in the market by supplying high quality high-grade-HDG steel sheets including high tensile products. To this end, both companies continue to carefully analyze the market situation and to discuss the market forecast and resumption of construction of the New CGL.


[Outline of I/N Kote]
・Name：I／N Kote L.P.
・Location：New Carlisle, Indiana, U.S.A.
・Establishment：September 1989
・Capital：$120 million（Nippon Steel50%、ArcelorMittal50%）
・No. of employees：250
・Business：Manufacture and sale of hot-dip galvanized and electrogalvanized steel sheets mainly for automotive use
・Major facilities：1 continuous galvanizing line (500,000 short ton p.a.)
1 electrogalvanizing line (450,000 short ton p.a.)