The post Agreement between ArcelorMittal and NSSMC regarding joint venture to acquire Essar Steel India Limited appeared first on Core Sector Communique.
]]>ArcelorMittal (The Company) has signed a joint venture formation agreement with Nippon Steel & Sumitomo Metal Corporation (NSSMC) in relation to its offer to acquire Essar Steel India Limited (Essar Steel). The Company’s subsidiary ArcelorMittal India Private Limited (AMIPL) submitted a Resolution Plan for Essar on 12 February, which outlined the intention to have NSSMC formally join its bid for Essar Steel. Should the submitted Resolution Plan be selected and formally accepted by India’s National Company Law Tribunal, ArcelorMittal and NSSMC would jointly acquire and manage Essar Steel.
In its Resolution Plan, AMIPL set out a detailed industrial and turnaround plan aimed at restoring Essar Steel’s fortunes, enabling it to realise its full potential and participate in the anticipated steel demand growth in India.
Commenting, Mr. Lakshmi Mittal, Chairman and CEO, ArcelorMittal, said:
“Partnering with NSSMC for Essar Steel was always our intention and adds further strength to our offer. Combining our experience and expertise creates a powerful partnership that has a proven track record – our rich history of positive collaboration dates back more than 20 years with three joint ventures in the US. We believe that together we can contribute our knowledge and technology to support a rapid turn-around in Essar’s performance, enabling it to increase production, enhance its product capabilities and make a meaningful contribution to the future growth of India’s manufacturing sector and the development of its economy.”
ArcelorMittal and NSSMC have operated I/N Tek and I/N Kote in Indiana, USA, under joint venture agreements since 1987. I/N Tek and I/N Kote are high-added value downstream steel finishing facilities which serve the automotive and domestic appliance markets.
More recently, in 2014, ArcelorMittal partnered with NSSMC on the acquisition of AM/NS Calvert, a state-of-the art downstream finishing facility in Alabama, USA. The facility, which opened in 2010 and has a 5.3 million tonne capacity, was the largest newly constructed steel facility in the US in 40 years but had failed to reach its potential. A major investment programme has been undertaken following the acquisition. The programme focussed on improving the facility’s finishing lines to enable the production of higher-added value steel products, including production of Usibor®, ArcelorMittal’s flagship advanced high-strength steel for the automotive sector, and increasing slab staging capacity and efficiency. These investments have helped to facilitate a rapid improvement in AM/NS Calvert’s performance: capacity utilisation rates have improved by over 20 per cent; shipments to the automotive sector more than doubled between 2015 and 2017; and productivity at the hot strip mill has increased by over 1 million tonnes since the acquisition.
About ArcelorMittal
ArcelorMittal is the world’s leading steel and mining company, with a presence in 60 countries and an industrial footprint in 18 countries. Guided by a philosophy to produce safe, sustainable steel, we are the leading supplier of quality steel in the major global steel markets including automotive, construction, household appliances and packaging, with world-class research and development and outstanding distribution networks.
Through our core values of sustainability, quality and leadership, we operate responsibly with respect to the health, safety and wellbeing of our employees, contractors and the communities in which we operate.
For us, steel is the fabric of life, as it is at the heart of the modern world from railways to cars and washing machines. We are actively researching and producing steel-based technologies and solutions that make many of the products and components people use in their everyday lives more energy efficient.
We are one of the world’s five largest producers of iron ore and metallurgical coal. With a geographically diversified portfolio of iron ore and coal assets, we are strategically positioned to serve our network of steel plants and the external global market. While our steel operations are important customers, our supply to the external market is increasing as we grow.
In 2017, ArcelorMittal had revenues of $68.7 billion and crude steel production of 93.1 million metric tonnes, while own iron ore production reached 57.4 million metric tonnes.
ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).
For more information about ArcelorMittal please visit: http://corporate.arcelormittal.com/
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]]>The post India’s Automotive Cold-rolled Steel Sheet Plant Celebrated Its Opening: NSSMC appeared first on Core Sector Communique.
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In January 2011, Nippon Steel and Sumitomo Metal Corporation (NSSMC) (Representative Director and President: Kosei Shindo) and Tata Steel Limited (TSL) (Managing Director: T.V. Narendran) agreed to form Jamshedpur Continuous Annealing & Processing Company Private Limited (JCAPCPL), a joint venture company for manufacture and sale of automotive cold-rolled sheets. Construction of a plant soon followed. In May 2014, JCAPCPL began operation, and on September 1, 2014 held an opening ceremony at the plant site. The ceremony was attended by government officials, customers, and other invited parties.
JCAPCPL can produce high-tensile steel sheet and other high-end cold rolled sheets for automobiles as it utilizes TSL’s excellent steelmaking infrastructure atJamshedpur Works and NSSMC’s state-of-the-art equipment and manufacturing technologies.
The automobile market in India, with its bright prospects for continued growth, is an important market for NSSMC and TSL. Through this joint venture, both companies will strive to respond to Indian automakers’ needs for high-grade high-quality automotive steel sheets.
[Outline of JCAPCPL]
| Location: | Jamshedpur Works of TSL Jamshedpur, State of Jharkhand, India |
| Business: | Manufacture and sale of automotive cold-rolled steel sheets |
| President: | CV Sastry (dispatched from TSL) |
| Vice President: | Hiroshi Tsuchiya (dispatched from NSSMC) |
| Capital: | INR9.3 billion |
| Equity ownership: | TSL 51%, NSSMC 49% |
| Major facilities: | Continuous annealing and processing line (C.A.P.L,) |
| Production capacity: | 600,000 tons/year |
| Capital investment: | Approximately INR22 billion (approx. 37 billion yen) |
| Operation: | Began in May 2014 |
| Employees: | Approximately 300 |
Opening Ceremony
[Reference: Outline of Tata Steel Limited]
| Establishment: | 1907 |
| Chairman: | Cyrus P. Mistry |
| Managing Director: | T.V. Narendran |
| Head office: | Mumbai, State of Maharashtra, India |
| Capital: | INR 8.87 billion (Approximately 15 billion yen) |
| Products | Steel sheets, shaped steel, bars, wires, electro-resistance-welded tube, and others |
| Sales volume: | 8.52 million tons (parent-base), 26.36 million tons (consolidated-base) |
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]]>The post NSSMC: Commencement of SuperDyma™ production in Thailand appeared first on Core Sector Communique.
]]>～Revamp the No.2 Metal Coating Line of NS BlueScope Thailand～
NS BlueScope Thailand, a company of NS BlueScope Coated Products which is a joint venture of Nippon Steel & Sumitomo Metal Corporation(President：Kosei Shindo, hereinafter “NSSMC”) and BlueScope Steel Limited, Australia (CEO: Paul O’Malley, hereinafter “BSL”) focusing on coated products (hot-dip galvanized steel sheets, painted steel sheets, and roll-formed products) in Southeast Asia and the U.S. has decided to commence production of SuperDyma
, known as high value added galvanized steel sheet of NSSMC, in Thailand.
SuperDyma, a unique product of NSSMC, which is a hot-dipped alloy coated steel sheet mainly with zinc, as well as aluminum, magnesium, and silicon. Compared with current galvanized steel sheets, SuperDyma has excellent corrosion resistance, which might bring cost competitiveness to customers through longer life cycle of products and substituting other materials. Through the production in Thailand, NSSMC will be able to provide value added products, services, and solutions to meet customer’s needs locally , and it will enforce activity in both home appliance and building and construction markets.
【outline of NS BlueScope Coated Products】
| Name: | NS BlueScope Coated Products |
| Equity ratio: | NSSMC50%, BSL50% |
| Purpose of business: | Production and sale of hot dip galvanized steel sheet, painted steel sheet, and roll-formed products |
| Main productive capacity： | Cold Rolled capacity 800kt/year, hot dip galvanized capacity 1400kt/year, Painting capacity 650kt/year, roll-forming bases25 |
| Operating entities: | 20 companies in 7 countries |
| Employees: | around 3,000 |
| Chairman : | Shinya Higuchi（Representative Director and Executive Vice President of NSSMC） |
| CEO : | Sanjay Dayal |
【outline of NS BlueScope Thailand】
| Purpose of business: | Production and sale of hot dip galvanized steel sheet and painted steel sheet |
| Main productive capacity: | Cold rolled capacity 360kt/year, hot dip galvanized capacity 320kt/year (2 lines), painting capacity 80kt/year |
| Location: | Rayong Thailand |
＜outline of the revamp in No.2 Metal Coating Line＞
| CAPEX： | around 33mil AUD |
| Content: | Revamp existing No.2 Metal Coating Line pot to produce |
| Commencement date for SuperDyma: |
August 2015 |
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]]>The post Message from Kosei Shindo, President, NSSMC appeared first on Core Sector Communique.
]]>Nippon Steel & Sumitomo Metal Corporation was established on October 1, 2012 by a merger of Nippon Steel and Sumitomo Metals. I believe that we have made an excellent start and a steady progress in the first 18 months, toward our aim of becoming the “Best Steelmaker with World-leading Capabilities.” I would like us to acquire formidable competitive strength, unrivaled by any steelmaker in the world, and to strive to increase our corporate value by making progress in dealing with management issues.
I think there are two working objectives we need to focus on. The first thing is to expand profits and keep strengthening our business foundation in Japan. The second is, on the premise of our doing the first, to expand profits overseas. Both of those are indispensable and inseparable, like the two wheels of a cart, for us to become a truly global company.
Let me first take up the first point. Becoming more profitable and stronger in Japan means we must make continuous efforts at rebuilding and fortifying the competitiveness of our domestic manufacturing bases. At the same time, it reflects our will to be a company that creates, pursues, and exploits technological advances.
Manufacturing lines in Japan are positioned as the mother plants of our global supply system. We have to pursue high quality and productivity, develop and commercialize advanced technologies, and ensure an outstanding manufacturing capacity. We should always have in mind that our domestic manufacturing lines play a role of mother plants only because they are the sources of our competitiveness and have our two essential properties: “responsiveness to customers” and “empowered worksites”.
Many of our customers in various industries in Japan are exposed to fierce global competition but prevail with formidable power. We have strived to do our share of making effective proposals to improve the value of their products and their productivity. Thankfully, such processes have also helped us become stronger in various ways, in areas including quality, productivity, and manufacturing technology, and become more competent in the global market. This “responsiveness to customers” is truly one of our strengths, in my view.
Another area of strength is our “empowered worksites.” Products of Nippon Steel & Sumitomo Metal are highly regarded in terms of quality by our customers. This is because of superb “empowered worksites” of our manufacturing bases, including those of our group companies, which show themselves to be clusters of technologies, skills, and ethical behavior.
While our business environment constantly changes, we will be flexible and continue to raise competitiveness of our manufacturing bases by making better use of our existing facilities and exercising timely and planned replacement investment. We are currently undertaking a campaign to strengthen our manufacturing bases. We will conduct replacement investment as needed, consistently seek to have optimal manufacturing systems, and further enhance our “responsiveness to customers” and our “empowered worksites.” This, I believe, is how we will make ourselves more competitive.
Moreover, I would like us to further strengthen R&D activities and keep pursuing technological advances, without being confined by fixed mind-sets. Specifically, we should carry out more joint R&D activities with research universities and research institutions elsewhere, and focus more on developing new processes and other manufacturing technology in order to realize the cost levels that make us competitive even in general-purpose steel, or so-called volume-zone products. In addition, we should do more joint development with our customers to develop high-function products, which may meet future needs in new growth areas. We should thus enhance our product technology development, pursue technological advances, and expand globally.
Regarding the second point, “overseas profit expansion,” we already have 195 overseas subsidiaries and affiliates in the group. We will strive to enhance the profitability of those existing overseas businesses. On top of that, we will aim at further growth by developing businesses which are needed and doing so in a profitable way.
We are anticipating more intensified competition in the East Asia region and ASEAN countries where steel demand is expected to increase. I wish earnestly that we survive in this competition and continue to prevail in the global market. In order to do so, we have to capture demand, command the market, and be regarded highly by customers and markets, not only in the automotive market where we have already achieved a significant presence in Japan and overseas, but also in resources and energy, transportation, infrastructure and other areas where demand is expected to increase and where we could leverage on our competitiveness.
I also think that it is important that we contribute to development of the countries where we have a presence and help promote their growth. In satisfying the needs of our customers and markets, we must always be mindful of the importance of working to have optimal production systems, which includes local sources of iron. We also must make efforts to improve the supply chain, work jointly with group companies in facility maintenance, logistics, systems, and other areas., and build a stronger network with local partners and administrative authorities.
What I mentioned here is incorporated in our Corporate Philosophy, which was adopted when Nippon Steel & Sumitomo Metal was integrated. I firmly believe that a truly global company is one that strives for development of the countries it does business in, and to be trusted and respected worldwide. The NSSMC Group will be committed to “pursue world-leading technologies and manufacturing capabilities” and “provide products and services that benefit society, or, in order words, help develop the world.”
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]]>The post NSSMC – Establishment of the Dubai Office appeared first on Core Sector Communique.
]]>In the Middle Eastern & African regions, there are expectations of the medium and long-term growth of steel demand, chiefly for oil-country tubular goods and line pipe in the exploration of energy sources, as well as for other steels for infrastructure.
To broaden our firsthand information gathering capacity, and to secure a business base for providing sales support and technical services for steel demand in the region, we are going to reorganize the Dubai Branch of our European Office and establish the Dubai Office, to be effective as of April 1st, 2014.
Outline of the Dubai Office;
Location: Level 10, JAFZA View 18, Jebel Ali Free Zone, Dubai, U.A.E. (P.O. Box 262517)
Telephone: +97-1-4-8865900 Facsimile: +97-1-4-8865901
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]]>The post NSSMC and Mitsui to Invest in West Angelas Mine Expansion in Western Australia appeared first on Core Sector Communique.
]]>Nippon Steel & Sumitomo Metal Corporation (“NSSMC”, head office: Chiyoda-ku, Tokyo; Chairman & CEO: Shoji MUNEOKA) and Mitsui & Co., Ltd. (“Mitsui”, head office: Chiyoda-ku, Tokyo; President & CEO: Masami IIJIMA) are pleased to announce that Robe River Iron Associates (“Robe River J/V”, Rio Tinto 53%, Mitsui 33%, NSSMC 14%) has agreed to invest in the development of Deposit B (“the Deposit”) in West Angelas mine and expansion of its production capacity, owned by Robe River J/V in the Pilbara region of Western Australia.
The Deposit is expected to start production in January 2015. Upon completion, total production capacity at West Angelas, from the Deposit together with existing deposits, will be expanded from the current 29 million tons per annum (“mtpa”) to 35 mtpa (“Mine Expansion”). Mine Expansion will increase Robe River J/V nameplate capacity by 6 mtpa.
Total capital cost for Mine Expansion is estimated to be A$642 million (57.8 billion yen), of which NSSMC will invest A$90 million (8.1 billion yen) and Mitsui will invest A$212 million (19.1 billion yen), in proportion with their respective ownership interests.
Through Robe River J/V, NSSMC and Mitsui will continue their effort to enable a stable supply and procurement of iron ore for which the global demand is expected to further grow.
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]]>The post Expansion of Crankshaft Forging Business in the U.S.- International Crankshaft Inc. will build No.4 Forging Press Line appeared first on Core Sector Communique.
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International Crankshaft Inc. (“ICI”), a joint-venture subsidiary of Nippon Steel & Sumitomo Metal Corporation (“NSSMC”) and Sumitomo Corporation (“Sumitomo Corp.”) that forges crankshafts in the U.S., decided to build a new forging press line.
The car sales in North America are expected to grow by 7% for the next five years. Japanese and Korean automakers are shifting their production to North America from their home countries. Detroit three automakers are shifting from cast crankshafts to forged ones as they downsize and improve the performance of the engines to meet higher fuel efficiency requirements.
ICI, after operating in the U.S. for twenty years, currently runs its three forging press lines at full capacity to respond to robust North American demand, producing approximately 2.7 million crankshafts per year. ICI decided to add a fourth forging press line to meet the customers’ demand. With this investment, ICI’s annual capacity will grow from current 2.7 million crankshafts to 4 million per year.
NSSMC forges crankshafts at four sites globally: Japan, US, China and India. Its combined annual capacity is approximately 11 million crankshafts with a estimated global market share of 10%. NSSMC will continue to meet the growing car market demands, improve its technological innovation capability and cost competitiveness, and accelerate its global business development.
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| Overall View of ICI | No.3 Press Line (6,000-ton high-speed press) |
Crankshafts for passenger cars
Specifications of No. 4 forging press line
(1)Capital Expenses: Approximately US$46 million (46 billion yen)
(2)Production Facility: one 5,000-ton forging press line
(3)Production Capacity: Approximately 1.3 million
crankshafts per year
(4)Start of Operations: November 2015 (scheduled)
Outline of ICI (as of the end of November 2013)
Place of Business: 101 Carley Court, Georgetown, Kentucky 40324, U.S.A.
Date of Foundation: February 1990
Start of Operation: April 1992
President: Nobuaki Masuda
Capital: 22 thousand US dollars
Owners: NSSMC 80%, Sumitomo Corp. 20%
Production Facilities: No.1 Forging Press Line (6,000-ton press)
No.2 Forging Press Line (7,000-ton press)
No.3 Forging Press Line (6,000-ton high-speed press)
Production Capacity: Approximately 2.7 million crankshafts per year
Number of Employees: 227
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]]>The post ArcelorMittal acquires ThyssenKrupp Steel USA with Nippon Steel & Sumitomo Metal Corporation for US$1,550 million appeared first on Core Sector Communique.
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Luxembourg, Friday 29 November 2013 – ArcelorMittal today announces that it has entered into a 50/50 joint venture partnership with Nippon Steel & Sumitomo Metal Corporation (“NSSMC”) to acquire 100% of ThyssenKrupp Steel USA (“TK Steel USA”) from ThyssenKrupp for an agreed price of US$1,550 million.The post ArcelorMittal acquires ThyssenKrupp Steel USA with Nippon Steel & Sumitomo Metal Corporation for US$1,550 million appeared first on Core Sector Communique.
]]>The post Concentration of Production Bases/Unified Marketing of Specialty Stainless Steel Plate and Concentration of Production Bases of Titanium Plate appeared first on Core Sector Communique.
]]>Concentration of Production Bases/Unified Marketing of Specialty Stainless Steel Plate and Concentration of Production Bases of Titanium Plate
Nippon Steel & Sumitomo Metal Corporation (Chairman & CEO: Shoji Muneoka, “NSSMC”) and Nippon Steel & Sumikin Stainless Steel Corporation (President: Hitoshi Ito, “NSSC”), relative to specialty stainless steel plate, with a view to structuring an optimum business operation setup within the NSSMC group, have decided to concentrate its manufacture from NSSMC’s Naoetsu Works into NSSC’s Yawata Works, also unifying its sales functions into NSSC. NSSMC and NSSC will make explanations to their customers, putting this concentration and unification into effect at appropriate times from January 2014 onward.
Relative to titanium plate now being manufactured at NSSMC’s Naoetsu Works, from the standpoint of structuring an optimal production setup within the NSSMC group, its manufacture will be concentrated into NSSC’s Yawata Works. Following due explanations to the customers, this concentration will be implemented within fiscal 2014.
The NSSMC group will continue to further strengthen the titanium plate and specialty stainless steel plate businesses.
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]]>The post NSSMC: Capacity Expansion of the Automotive Steel Sheet Joint Venture in China appeared first on Core Sector Communique.
]]>Nippon Steel & Sumitomo Metal Corporation (“NSSMC”) and Baoshan Iron & Steel Co., Ltd. (“Baosteel”) have been planning to construct the fourth hot-dip galvanizing line at a site neighboring the existing lines in BNA (Baosteel-NSC Automotive Steel Sheets Co., Ltd.), the joint venture between Baosteel and NSSMC, which operates within the compound of Baosteel in Shanghai, responding to the growth in demand for galvanized steel sheet (GA) for automotive use mostly from Japanese auto makers further building up their capacities in China, and also responding to their needs for Advanced High Strength Steel to permit further weight reduction for better performance in fuel economy, with automotive demand expanding in China. BNA has now obtained approval of the project from the government of the City of Shanghai. This is a major investment for capacity increase following the third hot-dip galvanizing line, which was put into operation in 2010. This new line, though similar in type to the existing first and third hot-dip galvanizing lines, is additionally capable of manufacturing Advanced High Strength Steel materials (e.g. galvanized dual-phase 980 steel), with a production capacity of 420,000 tons/year of high-grade automotive galvanized steel sheet. The start of operation of the new line is slated for 2015.
<Outline of the new line>
– Name: No. 4 hot-dip galvanizing line (No. 4 CGL)
-Production capacity: 420,000 tons/year
-Investment: about 1,100 million yuan
-Location: site adjacent to the present BNA (within the compound of Baosteel)
-Start of operation: 2015 (plan)
(Reference) Profile of BNA
-Name: Baosteel-NSC Automotive Steel Sheets Co., Ltd.
-Establishment: July 2004
-Business: Manufacture and sale of automotive steel sheet (cold-rolled steel sheet, hot-dip galvanized steel sheet, etc.)
-Product: Cold rolled steel sheet, hot-dip galvanized steel sheet (primarily for automotive use, partly for electric appliances and construction materials)
-Equipment:
Pickling/cold rolling: 2.4 million tons/year
Continuous annealing (C.A.P.L.): 950,000 tons/year
No. 1 hot-dip galvanizing line (No. 1 CGL): 450,000 tons/year
No. 2 hot-dip galvanizing line (No. 2 CGL): 350,000 tons/year
No. 3 hot-dip galvanizing line (No. 3 CGL): 450,000 tons/year (operative in 2010)
-Employees: about 650
-Registered capital: 3,000 million yuan
-Equity ratio: NSSMC 50%, Baosteel 50%
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