U.S. Steel and a Japanese steel maker have agreed to start construction of a new production line at their joint venture in Ohio that represents an investment of about $400 million.
The Pittsburgh-based steel company and Kobe Steel of Japan issued an announcement Monday about the new continuous galvanizing line at Pro-Tec Coating Co. in Leipsic, Ohio. Leipsic is south of Toledo and about 250 miles west of Pittsburgh.
The new line, the announcement said, will have yearly capacity of 500,000 tons and be capable of coating steel to help automakers manufacture lightweight vehicles as they work to achieve new fuel efficiency standards.
The companies said the new line is justified by increased demand for advanced high-strength steel. Construction is set to begin later this year.
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.”
Mr. Burritt added, “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.”
Pro-Tec, according to the statement, is a privately held, 50/50 joint venture partnership of the two steel companies.
The announcement did not detail any potential impact on hiring at the joint venture.