Jun 28 2008
ArcelorMittal, Hunan Valin Group and Hunan Valin Steel Co. announce today a new development in their cooperation with the launch of Valin ArcelorMittal Automotive Steel, an industrial and commercial automotive joint venture that will have an annual production capacity of 1.2 million tonnes of flat carbon steel, mainly for automotive applications. Products will include cold rolled steel, galvannealed steel and pure zinc galvanized steel. The setup of this new joint venture is still subject to regulatory approval.
Hunan Valin Steel Co., Ltd will own 34% in the new joint venture, and ArcelorMittal and Hunan Valin Group will each have a 33% equity share.
The new activity will be located in Hunan Province next to Hunan Valin Steel Co.’s subsidiary, Lianyuan Steel, which will supply hot rolled coil to the new joint venture.
Speaking today, Lakshmi Mittal, Chairman and CEO of ArcelorMittal said: “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.”
Mr. Li Xiaowei, Chairman of Hunan Valin Group, said: “Hunan Valin’s long term development and future really depends on the technological platform jointly set up with ArcelorMittal. Valin is structurally transforming its product portfolio and targeting high added-value products, allowing us to differentiate ourselves from our competitors and to accelerate the transformation of Hunan province.”