) and Japan's
Nippon Steel & Sumitomo Metal Corporation
) have announced the new name for the world's most modern steel
finishing facility - AM/NS Calvert (formerly known as
ThyssenKrupp mill) - in Alabama. The announcement was made during
a private employee reception held at the facility.
ArcelorMittal expects the facility to produce the highest
quality products and build a strong reputation for Calvert. Both
the companies reaffirmed their commitment of achieving the
potential of Calvert, which has a total capacity of 5.3 million
tons and features state-of-the-art hot rolling, cold rolling,
coating and finishing lines will achieve the standard-setting
The companies also appointed Chris Richards as the president
of AM/NS Calvert, who will be responsible for the operations of
the new joint venture.
ArcelorMittal recently closed the acquisition of ThyssenKrupp
Steel USA (TK Steel USA). ArcelorMittal, in Nov 2013, signed a
50-50 joint venture pact with Nippon Steel to acquire
ThyssenKrupp's 100% interest in TK Steel USA for $1.55 billion.
This acquisition is an important strategic fit for ArcelorMittal
and is expected to deliver $60 million of annual synergies for
ArcelorMittal holds an identified franchise business in the
automotive market and the acquisition is expected to reinforce
the company's existing auto business in the U.S. The NAFTA (North
American Free Trade Agreement) automotive market is expected to
see a roughly 15% rise in vehicle production over the next
This transaction will also uplift ArcelorMittal's position in
supplying to the NAFTA energy industry, which is expected to
demonstrate growing demand for energy pipe and tube products due
to increases in oil and natural gas exploration and production.
The newly formed joint venture is also expected to meet the
growing needs, especially of Japanese car manufacturers, for
ultra-high tensile strength products with good formability.
ArcelorMittal currently carries a Zacks Rank #3 (Hold).
Other companies in the steel industry with favorable Zacks
AK Steel Holding Corp.
United States Steel Corp.
). Both these companies retain a Zacks Rank #2 (Buy).
AK STEEL HLDG (AKS): Free Stock Analysis
ARCELOR MITTAL (MT): Free Stock Analysis
NIPPON STEEL CP (NSSMY): Get Free Report
UTD STATES STL (X): Free Stock Analysis
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