Arcelor Mittal opens new steel plant in China

Lakshmi Mittal opened his first facility in China through the VAMA joint venture. The new project with an investment volume of about $ 832 million is aimed at supplying the domestic automotive market. VAMA (Valin Arcelor Mittal Automobile Corporation), in which the Chinese steel company Hunan also has a stake in the production of high-strength automotive steel. The company said China is importing this kind of steel to meet its domestic needs.

The company announced that within the framework of this project, VAMA will produce coated steel using a new technology that ensures high surface quality after milling and cost-effective light weight, which will help meet the rapidly growing demand for advanced automotive steel in China. As a result, an annual production of more than 1.5 million tons will be added, which includes 800 thousand tons of CRC, 500 thousand tons of hot-dip galvanized coils and 200 thousand tons of coated aluminum coils.

These products will be supplied to international car manufacturers such as Ford, GM, Volkswagen, Honda, Toyota, BMW, Daimler-Benz, Nissan, Renault, Fiat, which have a presence in China. In addition, the demand of domestic car manufacturers such as Changan, Dongfeng, Chery and Geely will be met.

The company added that China has the fastest growing auto industry in the world. It is expected to contribute about 35 percent of global growth in the automotive sector by 2020. At the opening ceremony, billionaire Lakshmi Mittal said, "Completing a major project on schedule and on budget is a remarkable achievement that sets a new standard in our industry."