PRO-TEC Coating Company, an equal stake joint venture (JV) between United States Steel Corporation and Japanese steel maker Kobe Steel, is set to build a new continuous galvanising line in its steel plant in Leipsic, Ohio.
United States Steel Corporation and Kobe Steel have inked an agreement for the construction of the project, which will boost output capacity of high-strength steel to meet growing demand from automakers.
The new production facility, which is scheduled to commence operation in 2019, will be capable of producing 500,000 tonnes of steel per annum. Construction is likely to start during the fourth quarter of 2017.
Using a proprietary process, the new line will enable PRO-TEC to produce Generation 3 steels with a hot-dipped zinc coating that will help automakers manufacture economically lightweight vehicles to meet increasing fuel efficiency requirements while meeting high safety standards.
U. S. Steel President and CEO David 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.
“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.”