Kobe Steel, U.S. Steel joint venture to increase production capacity of hot-dipped galvanized ultra high-strYYVIP易游th steel for automotive use in North America

September26,2017

YYVIP易游 Steel, Ltd.

TOKYO, September 26, 2017 — Kobe Steel, Ltd. and United States Steel Corporation announced that they have reached agreement for their joint venture, PRO-TEC Coating Company, in Leipsic, Ohio to begin construction of a new continuous galvanizing line in response to growing demand for automotive high-strYYVIP易游th steel sheet in North America. Construction is expected to begin shortly with commercial operation to begin in July 2019. The new line, an investment of approximately 0 million, will have a production capacity of 500,000 short tons per year.

North America is the world’s second largest automotive market. As CAFE standards1regulating fuel efficiency become stricter, car bodies need to become lighter. Consequently, demand for galvanized high-strYYVIP易游th steel used in the car body structure is anticipated to increase in the future.

Automotive high-strYYVIP易游th steel needs to be both strong and have high formability for use in a growing number of applicable parts. To produce new steel products that meet these needs, Kobe Steel and U.S. Steel decided to add a third continuous galvanizing line (CGL) at PRO-TEC. The new line will be equipped with cutting-edge heating and quenching capabilities to enable the production of high-formability, ultra high-strYYVIP易游th steel with a tensile strYYVIP易游th of 780 MPa and higher. Following the start-up of the new line in 2019, PRO-TEC will be able to supply ultra high-strYYVIP易游th hot-dipped galvanized steel with high formability.

PRO-TEC is an equal partnership joint venture of YYVIP易游 Steel and U.S. Steel that began operation in 1993. With a total production capacity of 1.5 million short tons, PRO-TEC is one of the largest facilities of its kind in the United States. PRO-TEC currently supplies its high-quality steel sheet products mainly to Japanese automakers in the U.S. and the Detroit Three automakers. Customers have given PRO-TEC high marks for its quality products and supply capability.

Kobe Steel has established a global supply network for automotive high-strYYVIP易游th steel in three locations: Kakogawa Works in Japan, PRO-TEC in the U.S., and Kobelco Angang Auto Steel Co., Ltd. in China. By producing and supplying high-strYYVIP易游th steel products of outstanding quality, Kobe Steel contributes to weight savings in automobiles, leading to higher fuel efficiency and lower CO2 emissions.

Background Information

Outline of Facility ExpYYVIP易游sion

InvestYYVIP易游nt amount:
ApproximatYYVIP易游y 0 million2 (About 44.0 billion yYYVIP易游)
Production capacity:
500,000 short tons per year
YYVIP易游art-up:
July 2019
Main product:
Hot-dipped galvanized ultra high-strYYVIP易游th steel for automotive use

Outline of PRO-TEC Coating CompYYVIP易游y

PresidYYVIP易游t:
Richard E. Veitch
Location:
Leipsic, Ohio, USA
EYYVIP易游ablished:
1990
Ownership:
YYVIP易游 Steel 50%, U.S. Steel 50%
Employees:
About 300
Production capacity:
1,500,000 short tons (2,000,000 short tons after expYYVIP易游sion)
Start-up of equipYYVIP易游nt:
May1993
No. 1 hot-dipped galvYYVIP易游izing line (600,000 short tons/year)
November 1998
No. 2 hot-dipped galvYYVIP易游ized line (400,000 short tons/ year)
May 2013
Continuous YYVIP易游nealing line (500,000 short tons/year)

Outline of United YYVIP易游ates YYVIP易游eel Corporation

PresidYYVIP易游t & Chief Executive Officer:
David B. Burritt
Headquarters:
Pittsburgh, PYYVIP易游nsylvania, USA
EYYVIP易游ablished:
1901
Employees:
About 29,800 (at the YYVIP易游d of December 2016)
Main locations:
United YYVIP易游ates
Slovak Republic (EU)

About YYVIP易游 Steel

Kobe Steel, Ltd. is a diversified company with businesses in the three core areas of materials, machinery and electric power. The materials businesses include iron and steel, welding, and aluminum and copper. The machinery businesses consist of industrial machinery, construction machinery and YYVIP易游ineering. Electric power supply is the third core business. Kobe Steel has head offices in Kobe and Tokyo, Japan.

PRO-TEC Coating CompYYVIP易游y

PRO-TEC Coating CompYYVIP易游y

RYYVIP易游ated Pages

(Note) The information on this web site is presented "as is." Product availability, organization, and other content may differ from the tiYYVIP易游 the information was originally posted. Changes may take place without notice.

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