Valin ArcelorMittal Auto Plate Project officially put into operation in China

On June 15, 2014, the automotive plate project of the Valin ArcelorMittal Automotive Panel Co., Ltd. (VAMA) in Loudi City, Hunan Province, China was formally put into operation, marking the beginning of a new era for China's automotive steel industry. The project construction lasted for two years and received full support from more than 2,000 staff. The overall project was completed and put into operation on schedule as promised. It successfully achieved 6 million safe working hours and became one of the safest steel projects in China.

Valin ArcelorMittal Auto Plate Project officially put into operation in China

VAMA is jointly funded and established by ArcelorMittal, a leading global integrated automotive and mining company, and Hunan Hualing Iron & Steel Co., Ltd., a comprehensive service provider of steel products in China. The company is located in Loudi Economic Development Zone and is a National Development and Reform Commission and the Ministry of Commerce. One of the large approved investment projects. The total investment is 5.2 billion yuan (about 832 million U.S. dollars) and the annual output is about 1.5 million tons. VAMA focuses on the Chinese automotive market and strives to provide OEMs and Tier 1 suppliers with safer, more environmentally friendly solutions for high-end automotive panels. The production of automotive panels will further satisfy China's growing market demand.

Wang Jun, chairman of VAMA, stated: “The successful operation of VAMA benefits from the strong support from investors, government, suppliers, construction parties and local communities. This project will promote the further steady development of the Chinese auto industry.” Jimmy, Lakshmi Mittal, Chairman and Chief Executive Officer of ArcelorMittal, and Cao Huiquan, Chairman and CEO of Valin Steel attended the launching ceremony, highlighting the future of this project for the Chinese automobile industry. The importance of development.

Helping China create safer, more environmentally friendly cars

China is the world’s fastest-growing auto market. Last year, the country’s auto sales reached 18 million units, which is a 16% increase from the same period last year. From now until 2020, it is expected to account for 35% of the world’s auto growth in the same period. At the same time, car exhaust emissions have become more and more of a concern, accounting for 20% of China's total PM2.5, and in large cities such as Beijing [1], this proportion is as high as 31%. With VAMA's lightweight automotive steel solutions, it is possible to further reduce vehicle exhaust emissions and reduce environmental pollution caused by vehicle exhaust.

The automotive panels produced by VAMA are safe, efficient, lightweight, and have excellent surface quality to meet China's rapidly growing demand for high-end automotive panels. VAMA high-strength steel products will provide the automotive industry with stronger, safer and thinner automotive panels. The data shows that by using VAMA high-strength steel, the total weight of a Class C vehicle can be reduced by 19%, and the carbon emissions can be reduced by 14% throughout the entire automotive life cycle.

Sanjay Sharma, chief executive of VAMA, said: “The annual import volume of Chinese auto plates has reached 1.5-2 million tons in recent years. Targeting this market demand, VAMA will soon produce high-strength automotive plate products of the same type. The goal of import substitution is to target products to high-tech steel, and in the world, the use rate of such products exceeds 70%.VAMA focuses on providing high-strength steel and other value-added products to the fast-growing automobile market in China and becomes the same field. The leading suppliers are committed to supporting energy conservation and emission reduction, improving vehicle safety and promoting the further development of the entire industry."

ArcelorMittal provides VAMA with the world's leading automotive sheet production technology, including advanced high-strength steel (AHSS) and ultra high-strength steel (UHSS) up to 1200 MPa and Usibor® 1500. In addition, ArcelorMittal has also helped VAMA establish a strict quality control system and continue to provide globalization support in terms of technology and services. In China, ArcelorMittal's R&D engineers and 1,300 experts in 11 R&D centers around the world provide full support for VAMA. These advantages enable VAMA to provide world-class products, customer support, and quality services to customers in the Chinese market and in other regions.

VAMA is committed to providing high-end automotive panel products to domestic and foreign automakers and Tier 1 supplier networks, and to promote corresponding solutions. Including ArcelorMittal’s major customers in China such as Volkswagen, General Motors, Ford, PSA Group, Daimler-Benz, BMW, Toyota, Honda, Renault, Fiat and Nissan, and leading domestic manufacturers such as Geely, Chery, Dongfeng, Guangzhou Automobile, SAIC Motor and Changan Automobile.

Improve the overall value chain of the domestic automobile industry

Many automobile manufacturers such as GAC Fiat, GAC Mitsubishi, BYD, and Geely have gathered in Hunan. VAMA will add an important weight to the automotive value chain of the local automobile industry and play an important role in further investment promotion in the future. Benefiting from the local production of high-quality automotive panels, OEMs will enjoy greater flexibility, streamline logistics and respond more quickly to local demand. VAMA's investment will directly or indirectly promote the development of the entire automobile industry chain in Hunan Province.

As one of the largest investment projects in Hunan Province, VAMA has a registered capital of 2.6 billion yuan, and Loudi has an investment of 5.2 billion yuan. Before 2016, VAMA's sales revenue is expected to reach 10 billion yuan, which will not only bring tax revenue to the local government, but also bring further investment across the board.

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