ArcelorMittal, Nippon Steel defer US project
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Two of the world's leading steel makers ArcelorMittal and Nippon Steel will delay their $240 million joint venture project in the US following a dip in demand for the alloy from the carmakers.
Taking into consideration the downturn in North American automotive market, both the companies have agreed to defer construction of the new continuous galvanised line, supposed to double the capacity of auto steel sheets manufacturing, at Indiana US, a statement from Nippon Steel said.
"Both companies have agreed on defferal of construction of the new line until such time when the partners will gain a perspective of recovery of North American auto production," Tokyo-based Nippon Steel said.
Stating that North American automotive steel sheet market is one of the most important destinations for ArcelorMittal and Nippon Steel, the Japanese steel major added that the two companies would enhance their presence by augmenting supply.
"Both companies continue to carefully analyse the market situation and to discuss the market forecast and resumption of construction of the new line," the statement said.
In April 2008, global steel maker ArcelorMittal had announced expanding its joint venture project with Nippon Steel by building a new continuous galvanising line entailing an investment of $240 million in the US.
Taking into consideration the downturn in North American automotive market, both the companies have agreed to defer construction of the new continuous galvanised line, supposed to double the capacity of auto steel sheets manufacturing, at Indiana US, a statement from Nippon Steel said.
"Both companies have agreed on defferal of construction of the new line until such time when the partners will gain a perspective of recovery of North American auto production," Tokyo-based Nippon Steel said.
Stating that North American automotive steel sheet market is one of the most important destinations for ArcelorMittal and Nippon Steel, the Japanese steel major added that the two companies would enhance their presence by augmenting supply.
"Both companies continue to carefully analyse the market situation and to discuss the market forecast and resumption of construction of the new line," the statement said.
In April 2008, global steel maker ArcelorMittal had announced expanding its joint venture project with Nippon Steel by building a new continuous galvanising line entailing an investment of $240 million in the US.
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