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VAMAannounces intention to build new innovative coating line


 Investment grows VAMA’s advancedautomotive steel solutions capacity and ability to serve Chinese automarket


ValinArcelorMittal Automotive (‘VAMA’), a 50/50 joint venture betweenArcelorMittal, the world’s leading steel company and Valin Steel, aleading Chinese steelmaker, today announces an exciting expansion ofits facilities in Loudi, Hunan, through the addition of a newinnovative coating line which will enable the production of highlycorrosion-resistant steel. The coating line, which will come onstreamby July 2022,will increase VAMA’s capacity to produce high-quality,high-strength steels for the Chinese automotive industry by 450,000tonnes a year, to 2 million tonnes.


Theimportance of this event was emphasized by the presence of the HunanLeadership with Party Secretary Mr. Xu Dazhe and governor of HunanMr. Mao Weiming; the local Loudi government strongly supporting VAMAsent a delegation under the leadership of party secretary Mr. LiuFei. The whole ceremony was witnessed as well by both shareholders:ArcelorMittal chairman & CEO Mr. Lakshmi Mittal, ArcelorMittalEVP Mr. Brian Aranha, ArcelorMittal EVPMr. Bradley Davey, ArcelorMittal China CEO Mr. Sanjay Sharma, ValinGroup Chairman Cao Zhiqiang, Valin GroupCEO Mr Yi Zuo, Valin Lianyuan Party Secretary Mr. Xiao Zunhu and VAMAchairman Mr. Cheng PEixiang.

此次开工典礼受到了湖南省委省政府及娄底市委市政府的高度重视,湖南省委书记、省人大常委会主任许达哲、湖南省人民政府省长毛伟明、娄底市委书记、市人大常委会主任刘非先生率代表团一行到会了活动。两大股东方代表:安赛乐米塔尔董事长兼首席履行官Mr.Lakshmi Mittal(拉克什米·米塔尔先生),安赛乐米塔尔履行副总裁Mr.Brian Aranha(布莱恩·艾雷诺先生),安赛乐米塔尔集团履行副总裁Mr.Bradley Davey(布莱德利·戴维先生),安赛乐米塔尔集团我国区首席履行官Mr.Sanjay Sharma(桑杰·夏玛先生),华菱集团党委书记、董事长曹志强先生、华菱集团党委副书记、总经理易佐先生,华菱涟钢党委书记、履行董事肖尊湖先生和VAMA董事长成沛祥先生,一起见证了项目正式开工。

Sinceits inauguration in 2014, with the strong support of both local Loudigovernment and Hunan government, VAMA has grown into a leadingsupplier of advanced steel solutions for the Chinese automotivemarket. VAMA’s innovative, market-leading product range oflightweight steels is actively contributing to Chinese automanufacturers efforts to meet challenging CO2 reduction targets,while simultaneously enhancing vehicle strength and safety. Its presshardened steel, used for safety parts in the body-in-white, is thestrongest steel available on the Chinese market and can be found inalmost every car produced in China. Thanks to strong recognition fromits customers for its dedicated service, innovative product offer andhigh-quality standards, VAMA has been able to expand rapidly over thepast six years becoming one of the leading suppliers to Chinese OEMsincluding NEV carmakers. VAMA’s success in bringing innovativesolutions was recently emphasized when it received the innovationaward from NEVC, a leading New Energy Vehicle research association.


Thenew coating line will support VAMA’s ambition to become one of thelargest suppliers to China’s automotive market. China is alreadythe world’s largest automotive market, with forecasts indicatinganticipated annual growth of at least 6% in the coming decade.Alongside the anticipated volume growth, the sector is also focusedon further reducing its environmental footprint and transitioning toelectric vehicles. VAMA’s expansion will feature the most recentlydeveloped high strength steel grades and a new type of coating,allowing car makers to reach new quality standards. The new type ofcoating has been designed to allow for better corrosion-resistance ofboth inner and outer panels in the body-in-white. With these newproducts VAMA will also be positioned to support China’s automotivemanufacturers transition to electric vehicles through theintroduction of ArcelorMittal’s world leading S-in Motion steelsolutions for electric vehicles, toimplement the important announcement of General Secretary Xi Jinpingon "achieve carbon summit and realize carbon neutralization",make great contributions to the implementation of Hunan's "ThreeHighs and Four News” strategies.


Mr. Mittal said: “Today’sannouncement is an important development for VAMA. It builds on theimpressive progress the company has achieved in recent years, andfurther develops its ability to serve its customer base with highquality steel solutions.” He alsomentioned,” The Chinese automotivemarket is growing rapidly, with customers’ quality expectationsincreasing as they seek suppliers which can support their transitionto low-emissions vehicles. As the world’s leading supplier ofadvanced steel applications to the automotive market ArcelorMittal,through VAMA, is well placed to support this transition in China. Iwould like to thank the Hunan government for its ongoing support,along with our friends and partners at Hunan Valin. VAMA’s inherentstrength is built upon this partnership, and the investment we areannouncing today has been made possible through our combinedefforts.”


Mr.Cao Zhiqiang, Chairman and party secretary of Valin Steel, expressedhis sincere appreciation  on behalf of Valin Group to the leaders atall levels who have been concerned about and supported the growth ofValin and VAMA for a long time, and he mentioned that VAMA Phase IIproject aims at the world's cutting-edge technology of high-strengthand light-weighted automotive sheet, to build a new continuoushot-dip galvanizing line with 450 kt capacity per annum, which is amajor industrial project to develop "three hubs". Hunan CPCCommittee and Hunan provincial government attach significantimportance to the project, Loudi CPC Committee and Loudi municipalgovernment strongly support it, and both shareholders activelyadvance it. Today, the project kicks off construction as planned,which is just in time.


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