In the morning of June 9th, the signing ceremony of Automotive Sheet and Electric Steel Projects was held in Changsha, attended by the leaders of People’s Government of Loudi City, Hunan Province, Management Committee of Loudi Economic Development Zone, Valin Group, ArcelorMittal and Valin Steel. The signing of this agreement is a milestone of Valin and ArcelorMittal’s Automotive Sheet and Electric Steel Projects being established in Loudi Economic Development Zone.
Valin and ArcelorMittal signed the Automotive Sheet, Electric Steel and Stainless Steel Technical Cooperation Framework Agreement in 2007. And in June and August 2008, the Joint Venture Agreement of Automotive Sheet the Joint Venture Agreement of Electric Steel were signed by the two companies, to establish two JVs. The projects of automotive sheet and electric steel are aimed to supply high end steel products that is out of supply in the domestic market, such as the high strength car steel, high grade grain oriented silicon steel, high-grade non-grain- oriented silicon steel as the substitute of the imported steel products and to satisfy the demand for high tech products for automotives, power supply, home applicants etc. The total investment is estimated to be 10.5 billion yuan. The expected annual production capacity of high quality sheet will be 1.8 million tons, among which 1.2 million tons of automotive sheet, 0.4 million tons of non- grain- oriented electric steel and 0.2 million tons of grain- oriented electric steel.
After full discussion of experts, Loudi Economic Development Zone was chosen as the final location of the projects. As an important supply base of raw materials in Hunan province, with rich natural resources, complete industrial chain of thin sheet and excellent investment environment, Loudi is a good place of solid base, obvious advantages and huge potential to develop high class steel products. And Loudi government has also listed the two JVs projects of automotive sheet and electric steel as the first priorities for local investment cooperation activities, promising to give strong support in the terms of tax, auxiliary and energy supply, land for construction, logistics etc. Consensus has been reached among Loudi City Government, Loudi Economic Development Zone, Valin and ArcelorMittal, about the detailed conditions of the investment cooperation agreements, after several rounds of discussion. Mr.Li Xiaowei, Board Chairman of Valin Group, says the implementation of these two projects will create about 2000 jobs and effectively push forward the development of local public assistance and service industry. At the same time, the national and local fiscal income will be increased, with general economy boosted.