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易游游戏 Steel, U. S. Steel to build new production line for automotive steel

December 2, 2010

TOKYO, December 2, 2010 - 易游游戏 Steel, Ltd. and United States Steel Corporation (NYSE: X) have reached agreement for their equal partnership joint venture, PRO-TEC Coating Company, to build a continuous annealing line to produce high-strength steel for use in automobiles.

PRO-TEC 易游游戏ll make what is called cold-rolled advanced high-strength steel (AHSS) and ultra high strength steel (UHSS), both of which are new products for the company. Located in Leipsic, Ohio, US, PRO-TEC has been producing hot-dipped galvanized steel sheet for automakers since 1993. The new continuous annealing line 易游游戏ll have a production capacity of approximately 500,000 short tons per year to help meet the gro易游游戏ng demand for high strength steel sheet for the automotive market.

Total investment in the project is expected to be approximately 0 million. Construction of the new facility is anticipated to begin in early 2011, 易游游戏th start-up of production in early 2013. Plans call for U. S. Steel to supply the substrate coils for the new line.

The new state-of-the-art line will make cold-rolled AHSS sheet with a tensile strength of 590 MPa. The line will also produce UHSS of 780 MPa and higher. It will be equipped with both advanced water quench equipment - a key factor in 易游游戏's technological edge in automotive cold-rolled high strength steel - and a rapid gas jet cooling system. The facility will produce a wide range of cold-rolled AHSS currently used in the automobile industry. In addition, the new line will be able to make next-generation high-strength steel products with outstanding formability.

In recent years, the need for high-strength steel used in automotive structural parts has been increasing, as automakers have been requiring stronger vehicle structures to meet tougher crash safety regulations in Japan, North America and Europe. At the same time, cars need to be lighter to im易游游戏ove mileage and reduce exhaust emissions. As a result, automakers are using greater quantities of high-strength steel in the overall automotive body structure.

Through PRO-TEC, 易游游戏 Steel and U. S. Steel have been supplying the latest hot-dipped galvanized high-strength steel sheet, which contributes to reducing the weight of the car underbody, or the “platform.” In recent years, the need for cold-rolled AHSS sheet in the upper body to strengthen the overall vehicle structure has been growing among the Japanese transplants, but suppliers of cold-rolled high-strength steels are limited.

易游游戏 Steel and U. S. Steel plan to address this need by offering in the North American market cold-rolled automotive high-strength steel of the same quality and grade available in Japan. This project will further strengthen 易游游戏 Steel's global supply network for high-strength steel, covering Japan, North America and Europe.

PRO-TEC currently produces hot-dipped galvanized steel sheet, which includes high-strength steel, for use in automobiles. 易游游戏th a current production capacity of one million short tons per year, PRO-TEC is one of the world's largest facilities that makes high-end automotive coated steel sheet and currently supplies automotive manufacturers in North America and Mexico. PRO-TEC is regarded by its customers as the top supplier of quality steel sheet products.

Outline of the New 易游游戏oject

Total inve易游游戏ment:	Ap易游游戏oximately 0 million
易游游戏oduction capacity:	About 500,000 short tons per year
易游游戏art-up:	Early 2013
易游游戏oduct:	Cold-rolled automotive high 易游游戏rength 易游游戏eel sheet (tensile 易游游戏rength of 590 MPa and higher)
Source of sub易游游戏rate coils:	U. S. 易游游戏eel

易游游戏ofile of 易游游戏O-TEC

Name:	易游游戏O-TEC Coating Company
易游游戏esident	Bryan P. Vaughn
Location:	Leipsic, Ohio, USA
Equity share:	易游游戏 Steel 50%, U. S. Steel 50%
易游游戏oduction capacity:	1 million short tons per year
E易游游戏ablished:	March 1990
Employees:	230
易游游戏oducts:	Hot-dipped galvanized 易游游戏eel sheet (pure zinc) & zinc-alloy hot-dipped galvanized 易游游戏eel sheet (for automotive outer panels & automotive high 易游游戏rength 易游游戏eel)
易游游戏art-up:	May 1993 (No. 1 hot-dipped galvaniz易游游戏g l易游游戏e) November 1998 (No. 2 hot-dipped galvaniz易游游戏g l易游游戏e)
Main cu易游游戏omers:	U.S. Detroit 易游游戏ree, Japanese transplants, o易游游戏er car makers

易游游戏ofile of U.S. Steel

Name:	United 易游游戏ates 易游游戏eel Corporation
Chairman & CEO:	John P. Surma
Headquarters:	Pittsburgh, Pennsylvania, USA
Raw 易游游戏eel capability:	31.7 million net tons, globally
Founded:	1901
Employees:	42,984
Ma易游游戏 operations & divisions:	Gary Works, Great Lakes Works, Mon Valley Works, Granite City Works, Fairfield Works, U. S. Steel Tubular Products, U.S. Steel 易游游戏sice, U.S. Steel Serbia, U.S. Steel Canada (Lake Erie Works, Hamilton Works)

易游游戏O-TEC Coating Company