Joint venture helps drive industry forward with its body, powertrain solutions

In addition to improving the powertrain system, lightweight automobile steel can also help vehicles improve energy efficiency without compromising safety, according to Valin ArcelorMittal Automotive Steel Co Ltd.

The company, also known as VAMA, is a 51-49 joint venture between Valin Steel Co Ltd in Hunan and ArcelorMittal, the world's leading integrated steel and mining company with its headquarters in Luxemburg.

VAMA last week debuted its lightweight automotive project "S-in motion" in China - a series of solutions to optimize the body weight of cars, while ensuring continued high-safety standards and increased levels of energy efficiency. The company said the project has been a breakthrough innovation in the global automotive industry.

"As China's automotive industry continues to grow rapidly, demand for automotive steel is also rising both in terms of volume and quality. VAMA is focused on the China market and is dedicated to providing globally leading high-end automotive steel and solutions," said Wang Jun, chairman of VAMA.

"We are committed to facilitating the sustainable development of China's automotive industry through offering safer and more environmentally efficient products. This is being done in close partnership with automakers and other partners in the supply chain."

With rapid growth in China's automotive market, demand for automotive steel - particularly high-end products - continues to rise.

However, domestic manufacturers can only supply steel with strength up to 1000 MPa, and China's automakers are dependent upon imported very-high-strength steel above 1000 MPa, as well as Usibor steel.

In recent years, China imported 1.5 to 2 million tons of automotive steel annually. VAMA is positioning its product offering in state-of-the-art steel and aims to replace the imported products demanded by the local market.

"As the product of a strong partnership between Valin Steel and ArcelorMittal, VAMA boasts strong technological expertise, management experience and brand strength. We are very confident in our ability to turn VAMA into a premier automotive steel manufacturer in China," said Sanjay Sharma, CEO of VAMA.

Automotive steel manufacturing relies on an entire industrial chain, starting from raw material procurement for steel making, hot rolling, advanced technology in cold rolling and galvanizing and finally sales and comprehensive services.

By leveraging the support of ArcelorMittal's global research and development centers, including resident engineers based in Asia, VAMA said it will work closely with automakers through involvement in the early stages of automotive design, and so be able to offer product customization.

It said the Chinese partner Valin is strengthening its quality-control systems and establishing a superior supply chain to provide world-class raw materials for VAMA.

In addition, VAMA will adopt ArcelorMittal's most advanced third-generation automotive steel production standards - including ultra-high-strength steel grades with levels up to 1200 MPa, and Usibor1500 press-hardened steel - for producing state-of-the-art grade steel.

This will meet the increasing demand for safety, lightweight, anti-corrosion and energy-saving standards in the automotive industry, according to the company.