ThyssenKrupp Steel Expands Alliance with JFE Steel in U.S.A.

Karl Ulrich Kohler, president of ThyssenKrupp Steel made known on Tuesday he think that the firm may expand the partnership with JFE Steel, Japanese major steel maker, in North America. He is continuing conversation with JFE Steel for the expansion of their alliance based their alliance in Europe and Japan. At least for the present, he think to develop in American market on its own, which brings the establishment of rolling plant in U.S.A. into view following the takeover for Dofasco in Canada. The firm will move in the expansion of the production volume for securing of 10% in high-grade common steel sheet market for mainly automobile at 250 million tonnes per year in the world. The firm’s crude steel output was at 16.5 million tonnes in 2005. The firm produced common steel at 14 million tonnes in 2005. The firm will establish the slab plant of production capacity at 5 million tonnes per year in Brazil, which expand the capacity of the blast furnace by relining by 250,000 tonnes, and which may reach the production capacity of common steel products at 20 million tonnes per year. If the firm successes the takeover of Dofasco, he bring to increase the capacity of slab plant in Brazil by double. New slab plant in Brazil started the construction in the ending of September 2006, and will start the operation in spring of 2009. ThyssenKrupp Steel will advance the research for the construction of hot rolling mill, cold rolling mill and hot dip zinc coating line which is the capacity at 4.5 million tonnes per year by the investment at 1.8 billion euro in U.S.A. with the takeover of Dofasco, which think get the share of 5% in high-grade steel sheet market in North America by using for slab from Brazil new plant. The firm will select new plant site from Alabama, Arkansas and Louisiana in the beginning of 2007.