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ArcelorMittal Vega targets auto mart with coating technology investment

Keywords: Tags  ArcelorMittal, Vega do Sul, Brazil, coating technology, galvanized steel

SÃO PAULO — ArcelorMittal SA has installed new post-treatment technology on the No. 1 galvanizing line at its Vega do Sul flat-rolled steel mill in Brazil’s southern Santa Catarina state following a $10-million investment.

"The new technology improves Vega’s coated sheets for the stamping process, making the line particularly attractive to car manufacturers worldwide," the steelmaker said March 21.

In the new coating process, a liquid solution is applied to the galvanized sheets. Because of improved lubrification, steel goods can be more easily processed in the stamping line, the company said.

With a capacity of 540,000 tonnes per year, the sheets from Vega’s No. 1 galvanizing line can be used in all parts of a vehicle, depending on its design and technical requirements.

"The new technology will bring the greatest improvements to car parts that require extra deep drawing, such as door panels, side panels and hoods," Luxembourg-based ArcelorMittal said.

Vega supplies steel products to such car manufacturers as Japan’s Honda Motor Co. Ltd., the Renault-Nissan Alliance, Italy’s Fiat SpA, Detroit-based General Motors Co. and France’s PSA Peugeot Citroën.

ArcelorMittal’s plans to expand steel output capacity at Vega remain on hold. The steelmaker had planned to increase galvanizing capacity, which is now at 850,000 tonnes per year, by 600,000 tonnes, as well as raise cold-rolled capacity, now at 600,000 tonnes annually, by 700,000 tonnes.

A version of this article was first published by AMM sister publication Steel First.

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