| Agreement between Nippon Steel and ArcelorMittal |
April 16.2008 |
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Nippon Steel Corporation (gNSC", President: Shoji Muneoka) and ArcelorMittal (gAM"), which, according to the Memorandum of Understanding signed on July 12, 2007, have been discussing the expansion of the automotive steel sheet joint venture in North America and the relevant revision of the strategic-alliance-related agreements, have now agreed to the following:
(1) Regarding the expansion of the automotive sheet joint venture in North America, both parties have agreed that a new hot-dip galvanizing line for automotive sheet be additionally built at their existing joint venture, I/N Kote at New Carlisle, Indiana, U.S.A. Construction will start promptly, with the start of operation scheduled for 2010.
The new line, which will be of the same type as that of NSC's own state-of-the-art hot-dip galvanizing lines in Japan, will have an annual capacity of 480,000 tons (540,000 short tons) of high-grade, high-quality coated sheets, including high-strength steels which are demanded by auto makers. Substrates will be supplied, in general, from I/N Tek and ArcelorMittal's Indiana Harbor facility. Upon completion of this line, I/N Kote will have doubled its hot-dip galvanized steel sheet production capacity.
Outline of the new line:
-Name: No. 2 CGL
-Production capacity: 480,000 tons/year (540,000 short tons/year)
-Capital investment: $240 million(Target)
-Site: Adjoining area to the existing CGL of I/N Kote
-Start of operation: 2010
(Reference: Outline of I/N Kote)
-Company name: I/N Kote L.P. (location: New Carlisle, Indiana, U.S.A.)
-Establishment: September 1989, capital: $120 million (NSC 50%, AM 50%)
-Employees: 250
-Business: Manufacture and sale of hot-dip galvanized steel sheet and electrogalvanized steel sheet mainly for automotive use
-Equipment: 500,000tons/y hot-dip galvanizing line (CGL), and 450,000tons/y electrogalvanizing line (EGL)
(2) Regarding the NSC-Arcelor strategic-alliance-related agreements, NSC and ArcelorMittal have agreed among other provisions that Arcelor's rights and obligations be succeeded to by ArcelorMittal which is the consolidated company.
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Tel: +81-3-3275-5021~5023
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