Global steel company, ArcelorMittal has announced a joint venture with the Hunan Valin Group and Hunan Valin Steel, to launch Valin ArcelorMittal Automotive Steel. Hunan Valin Steel, listed on China's Shenzhen Stock Exchange, will own 34% in the new JV, while ArcelorMittal and Hunan Valin Group would have 33% equity share each. However, setting up of the new joint venture is subject to regulatory approval.
Valin ArcelorMittal Automotive Steel would have an annual production capacity of 1.2 million tonne of flat carbon steel, mainly for automotive applications. Other products of the joint venture company would include cold-rolled steel, galvanised steel and pure zinc galvanised steel. The new company’s manufacturing facility will be located in the Hunan Province in China, next to Valin Steel's subsidiary Lianyuan Steel, which would supply hot-rolled coil to the new joint venture.
‘The automotive joint venture is part of our global and China strategy, aiming to serve both our global clients as well as domestic automotive clients by offering them high value added products with the support of the ArcelorMittal technology,’ said Lakshmi Mittal, CEO and chairman, ArcelorMittal.
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