Nippon Steel, Arcelor Mittal to Launch New Galvanizing Line at I/N Kote

Nippon Steel announced on Wednesday the firm and Arcelor Mittal will build new continuous galvanizing line for automotive sheet at the joint venture, I/N Kote. They build new line with around 480,000 ton of annual output capacity for US$ around 240 million starting operation in 2010. By doubling the galvanizing capacity of the joint venture, they try to meet higher demand mainly from North American transplants of Japanese automakers. They also agreed for revised term for the strategic alliance. They had studied options to reduce the cost for the US new galvanizing line after the memorandum of understanding in July 2007. Nippon Steel will keep providing the automobile sheet technology to limited facilities of Arcelor Mittal through January 2011 as former Arcelor. They start construction of the new galvanizing line in December 2008. They try to start the commercial operation as early as possible to meet growing demand. Nippon Steel expects Japanese automakers expand the output by 1.4 million units by 2012 from 2006. I/N Kote in New Carlisle, Indiana is 50/50 joint venture of Nippon Steel and Arcelor Mittal operating continuous galvanizing line with 500,000 short ton of output capacity and electrogalvanizing line with 450,000 short ton of capacity. They operate also cold rolled sheet making venture, I/N Tek, of which Arcelor Mittal controls 60%.