U.S. Steel (X) and Japan’s Kobe Steel, Ltd. have commissioned the new continuous annealing line at their joint venture PRO-TEC Coating Company. Some of the strongest and most formable grades of steel in North America will now be processed by PRO-TEC.
The 500,000-ton PRO-TEC continuous annealing line will produce the next generation of Advanced High Strength Steels (:AHSS) and Ultra High Strength Steels (:UHSS) from 590 mega-pascal and higher. The new grades of steel will possess superior strength, flatness and formability that were earlier not available at these levels.
These better-quality steels will offer the customers critical design solutions as automotive companies minimize the weight of component materials in their line to improve fuel economy while enhancing strength to improve passenger safety.
The PRO-TEC joint venture will enable the customers of both U.S. Steel and Kobe to overcome the challenges associated with the 54.5 miles per gallon regulation, as the new grades will enable the automotive manufacturers to reach the 2025 Corporate Average Fuel Economy (CAFE) standards of 54.5 miles per gallon for their passenger vehicle fleet and maintain the safety standards their customers demand.
The products processed at PRO-TEC's new continuous annealing line will offer the customers affordable, highly advanced options that will position them for perpetual success.
The commissioning event is a result of a capital investment of $400 million by U.S. Steel and Kobe in PRO-TEC, which created 500 temporary construction jobs as well as 80 full-time jobs.
U.S. Steel currently carries a short-term Zacks Rank #5 (Strong Sell).
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