Credit: Shutterstock photoSteel giant ArcelorMittal ( MT ) has made several investments for years and has switched to a new symmetrical format for continuous casting line two, offering customers in the automotive supply sector high-quality steel ingots for producing forgings. The format includes gearbox parts, which create less vibration in the engine and consequently reduce noise emissions.
ArcelorMittal has spent about $267 million in the past four years in its site in Duisburg, Germany, of which $180 million was invested on a state-of-the-art wire rod mill. The new wire rod mill utilizes the latest technologies and processes high-strength and ultra-high-strength steels which enables thermo-mechanical rolling processes. ArcelorMittal has also installed a rod mill alongside so that the quality of products is maintained.
ArcelorMittal continues investing in the Ruhrort site. The company also plans to invest $8.6 million in the format change in order to adapt the plant to future requirements and to increase its competitiveness. The planned investments will change the mould format of continuous casting line two and will also improve the rolling tolerance, thereby increasing the quality of the product.
Moreover, the new format will increase the range of ArcelorMittal's products and at the same time increase the flexibility of customers who process the steel to make forged parts such as gearboxes, crankshafts, gear wheels or axles, predominantly for use in commercial vehicles.
ArcelorMittal Duisburg, which supplies semi-products for forging, as well as high-strength and ultra-high-strength wire rods, will adhere to the requirements of the strict European guidelines on noise emissions for commercial vehicles and will deliver forgings made from semi-products.
ArcelorMittal currently has a Zacks Rank #4 (Sell).
Other companies in the steel industry with favorable Zacks Rank include Grupo Simec S.A.B. de C.V. ( SIM ), POSCO ( PKX ) and ThyssenKrupp AG ( TYEKF ). While Grupo Simec sports a Zacks Rank #1 (Strong Buy), POSCO and ThyssenKrupp carry a Zacks Rank # 2 (Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
