Apr 16 2008
ArcelorMittal announced today that it is expanding its Joint Venture (J/V) partnership with Nippon Steel Corporation by building a new continuous galvanizing line (CGL) at the I/N Kote facility in New Carlisle, Indiana.
The new CGL will have an annual capacity of 480,000 tons (540,000 short tons) and, upon completion, will double I/N Kote's galvanized production capacity. In addition, the new line will offer high-grade, high-quality coated sheets that promote improved safety and fuel efficiency in automobiles.
"This is truly an exciting investment and one that will ensure ArcelorMittal and Nippon Steel maintain our leadership position in supplying the North American automotive industry with high-quality steels," said Michael Rippey, president and CEO of ArcelorMittal USA. "This approximately $240 million investment at I/N Kote will add a second galvanizing line that will double our production capacity and provide approximately 100 new full time jobs. ArcelorMittal is proud of the success demonstrated by our existing J/V relationship at I/N Tek and I/N Kote and we look forward to the future success of this new automotive coating line. Additionally, this investment reflects our confidence in the growing partnership between the United Steel Workers and ArcelorMittal to continuously improve every day and meet increasing customer demands."
"This is a great day for I/N Kote, our employees, the city of New Carlisle and the state of Indiana," said Chris Richards, general manager of I/N Kote and its sister facility, I/N Tek. "This is an exciting opportunity for all of our stakeholders as it allows us to further meet customer demand while bringing new jobs to our community and we thank our partners at the state and local levels for their essential support."
The new CGL will be housed in a new 240,000-square-foot building and will be supplied with cold-rolled coils from ArcelorMittal's Indiana Harbor and Burns Harbor operations as well as ArcelorMittal and Nippon Steel's J/V at I/N Tek. Groundbreaking is expected to take place later this year with completion slated for late 2010.
Indiana Governor Mitch Daniels, through the Indiana Economic Development Corporation (IEDC), took a leadership role in helping to make Indiana the most attractive location for this investment. IEDC offered the company substantial benefits, including grants to provide training assistance for new, eligible employees hired by I/N Kote and tax credits.
Founded in 1991, I/N Kote is a 50-50 joint venture between ArcelorMittal and Nippon Steel. The facility currently produces 450,000 tons (500,000 short tons) of hot-dip galvanized and galvannealed sheet and 410,000 tons (450,000 short tons) of electrogalvanized sheet annually.
Regarding the Arcelor-Nippon Steel strategic-alliance-related agreements, ArcelorMittal and Nippon Steel have agreed among other provisions that Arcelor's rights and obligations are to be assumed by ArcelorMittal.
Posted April 16th,2008