Nippon Steel Starts No.2 CGL in UNIGAL, Brazil

Nippon Steel announced on Thursday UNIGAL, a joint company with Usiminas, Brazilian steel maker, to produce automotive steel sheet, started no.2 continuous galvanizing line (CGL) on May 18. UNIGAL introduced no.2 CGL with output capacity at 550,000 tonnes per year by R$ 914 million (approximately 45.6 billion yen) investment. UNIGAL will raise the operation ratio to full during July-September 2011 and increase the total output capacity to 1.03 million tonnes per year.

Mr. Shinichiro Taniguchi, vice president of Nippon Steel, said at a completion ceremony on Wednesday UNIGAL can contribute to Brazilian automobile industry with high quality products supplied by no.2 CGL. Mr. Taniguchi offered Nippon Steel continues provision of technological supports and human resources to UNIGAL.

No.2 CGL is adopted to wider size lineup and processing of 980 MPa class high tensile steel sheet which contributes to weight saving of automobiles. UNIGAL introduced Nippon Steel’s L-type surface treatment technology to No.2 CGL and became able to can supply steel sheet with high pressing formability.

Nippon Steel recently decided construction of a new CGL in Thailand and plans to start the operation in 2013. Nippon Steel will become to operate 8 CGLs at 5 overseas plants including another CGL scheduled to enter operation in 2013 and existent CGLs in the U.S.A. and China in order to expand supply capacity of automotive steel sheet.