Market Overview

ArcelorMittal Recalibrates Agreement With Hunan Valin Steel To Increase Exposure To Fast Growing Automotive Market

Share:
Related MT
ArcelorMittal Projects Lower 2015 Core Profit
Earnings Scheduled For February 13, 2015
Iron Ore Prices Continue To Weigh In On ArcelorMittal With No Relief In Sight (Seeking Alpha)

ArcelorMittal and the Valin Group today announce that ArcelorMittal will increase its shareholding in the downstream automotive steel joint venture, VAMA (Valin ArcelorMittal Automotive), from 33% to 49%. VAMA is focused on establishing itself as a premier supplier of high-strength steels and value-added products for China's fast growing automotive market.

In-line with the new shareholding agreement, Valin and ArcelorMittal will increase their planned capacity by 25% from 1.2 million tons to 1.5 million tons. Capital investment will also increase by 15% to RMB 5.2 billion and VAMA has signed purchase agreements totalling RMB 1.8 billion for key equipment including cold rolling facilities, continuous annealing and galvanizing lines. The joint venture is expected to become operational in the first half of 2014.

Posted-In: News Commodities Contracts Markets

 

Related Articles (MT)

Around the Web, We're Loving...

Get Benzinga's Newsletters

Our Experts vs. S&P 500Powered by Benzinga
Marketfy Products Return S&P 500
Morning Profit Maker 42.72% 6.69%
The Option Prophet 91.14% 6.69%
SecretCaps 26.55% 6.69%
Short-Term Trend Trading 11.89% 6.69%
View the highest rated products→