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United States Steel Corporation, Kobe Steel Invest in AHSS Capabilities



United States Steel Corporation and Kobe Steel, Ltd. have announced their agreement to begin construction of a new continuous galvanizing line (CGL) at their subsidiaries' joint venture, PRO-TEC Coating Company in Leipsic, OH, in response to an increased demand for advanced high-strength steels (AHSS). The new CGL, an investment of approximately $400 million, will have a yearly capacity of 500,000 tons. This line, which will utilize a proprietary process, will be capable of coating steel that will help automakers manufacture economically lightweight vehicles to meet increasing fuel efficiency requirements while maintaining high safety standards. The line is expected to commence startup in 2019.

U.S. Steel provides its exclusive cold-rolled Generation 3 steels, which provide enhanced formability and high-strength properties while using a low-alloyed approach for robust weldability. The new CGL line will allow PRO-TEC to produce these Generation 3 steels with a hot-dipped zinc coating. Automakers can utilize these steels with their existing stamping and assembly methods to produce safe, strong and cost-effective structural components for vehicle bodies.

Of the announcement, U. S. Steel President and CEO David B. Burritt said, "This line will be the first of its kind and utilizes proprietary technology capable of producing the high-quality, cutting-edge advanced high-strength steels that will meet our automotive customers' needs and solve some of their most pressing challenges. Our Generation 3 steels continue to reinforce why steel remains the lowest cost, strongest, safest and most environmentally efficient material of choice."

Burritt added, "We are proud to be taking this step toward the future with Kobe. We thank the JobsOhio team and Ohio's regulatory authorities as well as the local, state and federal elected officials for their support of our investment."

For more information contact:

PRO-TEC Coating Company

5500 PRO-TEC Parkway

Leipsic, OH 45856-9234

419-943-1100

info@proteccoating.com

www.proteccoating.com

United States Steel Corporation

www.ussteel.com

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