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LEAD: Nippon Steel, Mittal to add car body galvanizing line at U.S. venture.

TOKYO, April 16 Kyodo


Nippon Steel Corp. said Wednesday it has agreed with ArcelorMittal of Luxembourg to add an advanced hot-dip galvanizing line for automobile steel sheet at their plant in the United States to double the plant's output of galvanized steel sheet.

Under the deal, the two steel-making titans will set up a continuous galvanizing line at which sheet will be dipped in a bath of molten zinc to make high-quality steel sheet, Nippon Steel said.

The allies are planning to commence operations of the line at I/N Kote L.P., based in Carlisle, Indiana, by the end of 2010. Construction will start in December, it said.

The new line, to be established at an estimated cost of $240 million, will have an annual manufacturing capacity of 540,000 short tons of galvanized steel sheet. A short ton is equal to 907.2 kilograms.

The plant's current continuous galvanizing line can turn out 500,000 short tons of sheet.

The sheet to be galvanized at the new line will be supplied by I/N Tek, a joint venture partly owned by Nippon Steel, and the Indiana Harbor East steelworks of the ArcelorMittal group, it added.

Demand from automakers for high-quality coated steel sheet, including high-tensile sheet, is on the rise.

Nippon Steel and ArcelorMittal have decided to boost output of high-quality sheet as Japanese automakers including Toyota Motor Corp. and Honda Motor Co. are planning to increase automobile production in the United States, Nippon Steel officials added.
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Publication:Japan Transportation Scan
Date:Apr 21, 2008
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