Steel Mills
Is U.S. Joint Venture Galv Line in Jeopardy?
Written by Tim Triplett
October 15, 2017
U.S. Steel reportedly still plans to construct a new continuous galvanizing line (CGL) at its PRO-TEC Coatings Co. subsidiary in Leipsic, Ohio. In doubt is whether joint venture partner Kobe Steel will still be involved.
A U.S. Steel spokesperson told the Northwest Indiana Times on Friday that “U.S. Steel remains committed to our new Advanced High Strength Steel CGL.” Steel Market Update has reached out to U.S. Steel for comment.
U.S. Steel and Kobe Steel announced Sept. 25 that as joint venture partners they planned to begin construction on the new CGL line in fourth-quarter 2017. The $400 million line, with an annual capacity of 500,000 tons, would utilize a proprietary process to coat advanced, Generation 3 lightweight steels for the auto industry.
Soon after the announcement of the joint venture investment, Kobe Steel admitted it sold copper, aluminum and steel products (wire and powders) that had failed quality control tests to about 500 customers, and falsified data to cover it up. The questionable materials have been used in products ranging from automobiles to aircraft. The investigation continues into whether any of the materials pose a danger as applied, but the Japanese steelmaker undoubtedly faces a host of lawsuits. The company’s stock price has plummeted as a result of the scandal, putting its commitment to the PRO-TEC project, and even the company’s viability, in jeopardy, say analysts.
Tim Triplett
Read more from Tim TriplettLatest in Steel Mills
U.S. Steel sues Algoma over iron pellet shipments
U.S. Steel is suing Algoma over the Canadian flat-rolled producer's rejection of iron pellet shipments, arguing it has breached its contract.
August US mill shipments slip but still higher than last year
The American Iron and Steel Institute reported a decline in the monthly shipments of US mills from July to August.
TransPod, Algoma, Supreme Steel linkup anchors Canadian steel in high-speed transit build
The three Canadian companies have announced a strategic partnership to support the development of an ultra-high-speed transit line from Edmonton to Calgary.
Metallus, USW agree to tentative four-year labor deal
Metallus and the United Steelworkers (USW) have agreed to a tentative four-year labor contract.
ArcelorMittal Dofasco resumes cokemaking after emergency maintenance
The Canadian steelmaker reported on Sept. 30 that “urgent maintenance” was needed in its coke plant off-gas systems. The work required coke oven gas from the No. 2 coke plant to be flared for most of that week.