Arcelor Do Deals with Tata Steel and Bao Steel

Arcelor have granted India’s Tata Steel a licence to use their technology to produce hot dip galvanised products for the automotive industry. The licence covers both pure zinc hot dip galvanising and galvannealed products, which will be produced at Tata’s continuous galvanising plant at Jamshedpur.

Tata Steel will licence Arcelor’s proprietary ExtraGal™ product, including the trademark for the production of pure zinc galvanised products.

This deal is the latest development coming from the co-operative agreement formed in April 2002, between Arcelor, Nippon Steel and Tata Steel, aimed at providing solutions for the Indian automotive industry.

Arcelor have also just announced the formation of a joint venture with China’s Bao Steel. This will see them set up an operation in the Shanghai region to produce tailor welded blanks for the automotive industry.

It will utilise raw material supplied from Bao Steel and Arcelor’s technology to produce the tailor welded blanks which can contribute to lower vehicle weights and improved operating efficiencies.

Work on the new plant is expected to begin later this year, and product to be made available in the second half of 2004. Initial capacity will be 2,000,000 units of tailor welded blanks.

For more information on galvanising, click here.

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