ArcelorMittal and SAIL sign MoU on automotive steel joint venture in India - Seite 2

Mr. C.S. Verma, Chairman, SAIL, added:  "SAIL is on the verge of completing a comprehensive modernisation and expansion program to increase its hot metal capacity from 14 million tons per annum (MTPA) to 23.5 MTPA, with a quantum jump in production of value added steels. Furthermore, we have drawn up a Vision 2025 plan to further increase capacity to 50 MTPA. Product enrichment is an integral part of this plan and the MoU with ArcelorMittal will pave the way for a new chapter in the indigenous production of high-quality automotive steel in India. It will also aid a broader effort by SAIL to help fulfil the high-quality steel requirements of the rapidly growing infrastructure and manufacturing sectors in India."

The combination of significant demand growth and limitations in India's existing domestic automotive steel production capabilities provides a compelling opportunity for both ArcelorMittal and SAIL. In the coming months, a working group with representatives from both companies will work on evaluating a structure for the proposed JV and carry out feasibility studies as part of a comprehensive due diligence process.

ArcelorMittal is the world's leading steel supplier to the global automotive sector, with a market share of approximately 17 per cent. In 2014, the company shipped over 13 million tonnes of steel to automotive customers globally, resulting in revenues in excess of $12 billion. The company has a proven track record of delivering innovative solutions to global automotive manufacturers, with six of its 12 research and development laboratories across the globe dedicated to developing new steels for auto manufacturers, focusing on: optimising the weight and cost of vehicles; helping auto manufacturers to meet stretching carbon emission targets; and ensuring high standards of safety. Recent innovations include the group's S-in-motion® range of steel solutions, applying advanced high-strength steels that can collectively reduce a vehicle's weight by up to 23 per cent and reduce carbon emissions by 14 per cent during a vehicle's use phase. ArcelorMittal's global footprint for automotive steels was recently expanded through the acquisition of AM/NS Calvert in 2014, a state-of-the-art finishing facility located in Southern USA that is servicing the growing NAFTA automotive market, and the opening of VAMA, a joint venture with Hunan Valin that established an inaugural production presence in China. VAMA produces high-strength automotive steel in China, the world's largest and fastest growing automotive market.