United States Steel Corporation and Kobe Steel have reached an agreement for their PRO-TEC Coating Company joint venture in Leipsic, Ohio, to start construction on a continuous annealing line at the facility.
Capital investment for the project is around US$400m which is expected to create 500 temporary construction jobs as well as 80 full-time jobs once operating.
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PRO-TEC has obtained financing commitments for the project subject to final documentation and other closing conditions. Completion of the project will take an estimated 24 months.
US Steel and Kobe Steel, through their joint venture in PRO-TEC, have been supplying the automotive industry with hot dipped galvanised high strength steel since 1993.
With the addition of the continuous annealing line, PRO-TEC will now produce cold rolled high strength steels and ultra high strength steels for automotive structural parts. The new line will have an annual production capacity of 500,000 tonnes.
The line will process steel purchased from US Steel and will use both water quench technology and a rapid gas jet cooling system.
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By GlobalData“PRO-TEC is an industry leader in quality sheet steel products and we are pleased to bring another quality product to market,” said US Steel chairman and CEO John Surma.
With a 1m tonne annual capacity, PRO-TEC is one of the world’s largest facilities producing high end automotive sheet steel for the automotive industry.
