) has opened a new, state-of-the-art steel making facility in China
through a joint venture, Valin ArcelorMittal Automotive Steel Co
(VAMA), aimed at catering to the local automotive market. The
aggregate investment in this project is roughly $832 million.
Construction of the plant was completed on schedule and within
budget and the entire project was constructed in 730 days versus an
industry average of 3.5 years, thus setting a new standard in the
industry. The plant will provide employment to about 600
professionals and the number is expected to rise once production
VAMA - the joint venture between ArcelorMittal and Hunan Iron
& Steel Co., - will manufacture state-of-the-art grade steels
for safe and cost-efficient light-weight design, superior surface
quality and coating technology, satisfying the increasing demand
for advanced automotive steels in China. The annual production
capacity will be 1.5 million tons which includes 800,000 tons of
cold rolled coils, 200,000 tons of aluminium-coated coils and
500,000 tons of hot-dip galvanised coils.
VAMA, located in the economic zone of Loudi, Hunan province,
focuses on supplying the international carmakers and Tier 1
suppliers in China, such as Volkswagen,
General Motors Company
Ford Motor Co.
), PSA, Daimler-Benz, BMW,
Toyota Motor Corporation
), Honda, Renault, Fiat and Nissan, as well as leading domestic
manufacturers such as Geely, Chery, Dongfeng, Guangzhou Auto,
Shanghai Auto and Changan.
ArcelorMittal is the world's leading steel company and has
contributed the most advanced automotive steel production
technology available. The opening of a new facility in China marks
the beginning a new era of automotive manufacturing in the
China recorded a 16% increase in car sales in 2013 and is
projected to account for 35% of global automotive growth from now
ArcelorMittal currently holds a Zacks rank #3 (Hold).
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