United States Steel Corporation and Kobe Steel Announce New Investment in Advanced High-Strength Steel Capabilities
September 25 2017 - 8:00PM
Today, United States Steel Corporation (NYSE:X) and Kobe Steel,
Ltd. have announced their agreement to begin construction of a new
continuous galvanizing line (CGL) at their subsidiaries’ joint
venture, PRO-TEC Coating Company in Leipsic, Ohio, in response to
an increased demand for advanced high-strength steels (AHSS).
The new CGL, an investment of approximately $400 million,
will have a yearly capacity of 500,000 tons. This line, which will
utilize a proprietary process, will be capable of coating steel
that will help automakers manufacture economically lightweight
vehicles to meet increasing fuel efficiency requirements while
maintaining exceptionally high safety standards. Construction is
expected to begin in the fourth quarter of 2017 and the line is
expected to commence startup in 2019.
U. S. Steel is a market leader in providing their exclusive
cold-rolled Generation 3 steels, which provide superior formability
and high-strength properties while using a low-alloyed approach for
robust weldability. The new CGL line will allow PRO-TEC to produce
these Generation 3 steels with a hot-dipped zinc coating.
Automakers can utilize these steels with their existing stamping
and assembly methods to produce safe, strong and cost-effective
structural components for vehicle bodies, further reinforcing
steel’s position as the economical choice for quality-focused
customers.
Of the announcement, U. S. Steel President and CEO David B.
Burritt said, “This line will be the first of its kind and utilizes
proprietary technology capable of producing the high-quality,
cutting-edge advanced high-strength steels that will meet our
automotive customers’ needs and solve some of their most pressing
challenges. Our Generation 3 steels continue to reinforce why steel
remains the lowest cost, strongest, safest and most environmentally
efficient material of choice.”
Burritt added, “We are proud to be taking this step toward the
future with Kobe. We thank the JobsOhio team and Ohio’s regulatory
authorities as well as the local, state, and federal elected
officials for their support of our investment.”
This news release contains certain information that may
constitute forward-looking statements within the meaning of Section
27 of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. We intend
the forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements in those sections.
All statements other than statements of historical fact are
forward-looking statements. Generally, we have identified
such, forward-looking statements by using the words "believe,"
"expect," "intend, " "estimate," "anticipate, " "project,
" "target, " "forecast," "aim, " "should," "will," and similar
expressions or by using future dates in connection with any
discussion of, among other things, trends, events or developments
that we expect or anticipate will occur in the future.
However, the absence of these words and similar expressions does
not mean that a statement is not forward-looking.
Forward-looking statements are not historical facts, but instead
represent only the Corporation's beliefs regarding future events,
many of which, by their nature, are inherently uncertain and
outside the Corporation's control. It is possible that the
Corporation's actual results and financial condition may differ,
possibly materially, from the anticipated results and financial
condition indicated in these forward-looking statements.
Management believes that these forward-looking statements are
reasonable as of the time made. However, caution should be
taken not to place undue reliance on any such forward-looking
statement because such statements speak only as of the date when
made. The Corporation undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by law. Forward-looking statements are subject to
certain risks and uncertainties that could cause actual results to
differ materially from the Corporation's historical experience and
our present expectations or projections. These risks and
uncertainties include those described in our Annual Report on Form
10-K for the year ended December 31, 2016, and those described from
time to time in our future reports filed with the Securities and
Exchange Commission.
United States Steel Corporation, headquartered in Pittsburgh,
Pa., is a leading integrated steel producer and Fortune 300 company
with major operations in the United States and Central
Europe. For more information about U. S. Steel, please visit
www.ussteel.com
PRO-TEC Coating Company, the 2007 Malcolm Baldrige National
Quality Award winner, is an innovative leader in technologically
advanced steel in coil form supplied primarily to the
quality-critical automotive market. The product helps to improve
vehicle crashworthiness as well as fuel economy through weight
reduction. PRO-TEC is a 50/50 joint venture partnership of
subsidiaries of United States Steel Corporation and Kobe Steel,
Ltd., of Japan. The company is privately held. For more
information about PRO-TEC Coating Company, please visit
www.proteccoating.com.
CONTACT:
Meghan Cox
Manager
Corporate Communications
T – (412) 433-6777
E – mmcox@uss.com
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