Thyssenkrupp Plans Investment in Auto-Grade Steel Production

By Nathan Allen

Thyssenkrupp AG (TKA.XE) is planning to invest in a new production line at its Dortmund plant that would nearly double the site's total output and boost its production of automotive-grade steel, according to papers published in a local government gazette on Saturday.

The steelmaker said it plans to invest several hundred million euros in a new vertical hot-dip galvanizing line, which would increase crude steel production to 1.3 million tons a year from 700,000 tons a year.

Hot-dip galvanized steel is resistant to corrosion and is commonly used in the production of automotive exteriors.

Most of the steel produced at the site would be destined for the European market, the company said.

Local government has been aware of the plans for a year, but the company's supervisory board still needs to sign off on the investment, a Thyssenkrupp spokesman said.

The company is currently seeking a new supervisory board chairman after the former occupant of the post Ulrich Lehner left suddenly in July.

Write to Nathan Allen at nathan.allen@dowjones.com

(END) Dow Jones Newswires

August 14, 2018 06:19 ET (10:19 GMT)

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