1. About VAMA shareholders
Hunan Valin Steel Co., Ltd
Hunan Valin Steel Co., Ltd (In short Valin Steel) is a listed company which is jointly invested by Hunan Valin Iron & Steel Group (Valin Group) and ArcelorMittal and has main business in iron and steel making. In 2013, Valin Steel is ranked #87 in Fortune China 500 companies and has the highest ranking among Hunan enterprises. Valin Steel has main operation facilities in Hunan Valin Xiangtan Iron & Steel Co., Ltd (Valin XTS), Hunan Valin Lianyuan Iron & Steel Co., Ltd (Valin LYS), Hengyang Valin Tube Co., Ltd (Valin HYT) and others. Also, Valin Steel has established production scale in niche products, i.e. sheets as representative product of LYS, plates, bars and wires as that of XTS and seamless tubes as that of HYS. Valin Steel has iron making capacity of 15.50 million tons, steel capacity of 18 million tons and steel products of 17 million tons per year.
During the “Eleventh Five-year Plan” period, Valin Steel accomplished 4 major strategic development projects with total investment up to RMB 37 billion, including 2250mm hot strip mill (HSM) and its auxiliary facilities of Valin LYS, 5-meter-wide heavy plate production line and its auxiliary facilities of Valin XTS, ø720 & ø180 steel tube project of Valin HYS. The said 2250mm HSM project lays a solid foundation for supply of high-quality hot-rolled substrates to downstream automotive steel project.
In 2012, Valin Steel completed production of 14.02 million tons crude steel, shipped 13.44 million tons of finished steel and recorded total revenue of RMB 59.3 billion with total assets reaches RMB 65.6 billion.
Arcelormittal is the world’s leading steel and mining company within Global Fortune 100 companies with its headquarter in Luxembourg. ArcelorMittal operates in 60 countries with 119 million tons of annual steel production capacity. ArcelorMittal employs about 245,000 people worldwide.
Guided by a philosophy to produce safe, sustainable steel, ArcelorMittal is the leader in all major global carbon steel markets, including automotive, construction, household appliances and packaging, with leading R&D and technology. The Group also has a world class mining business with a global portfolio of over 20 mines in operation and development, and is the world’s 4th largest iron ore producer. With operation in over 20 countries spanning four continents, the Company covers all of the key industrial markets, from emerging to mature, and has outstanding distribution networks.
ArcelorMittal is the leading automotive steel maker with worldwide presence, delivering a large scale of products, solutions and services to automotive customers with the same high quality focus in all regions. ArcelorMittal is rated as #1 supplier by 5 out of 6 global largest auto makers. ArcelorMittal extends its franchise to China through VAMA and provide global leading technology and management support.
Through its core values of sustainability, quality and leadership, ArcelorMittal commits to operating in a responsible way with respect to the health, safety and well-being of its employees, contractors and the communities in which it operates. It is also committed to the sustainable management of the environment. It takes a leading role in the industry's efforts to develop breakthrough steelmaking technologies and is actively researching and developing steel-based technologies and solutions that contribute to combat climate change.
In 2012, ArcelorMittal had revenues of $84.2 billion and crude steel production of 88.2 million tonnes, representing approximately 6 percent of world steel output.
ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).
2. VAMA Project history and status
Under great support of successive leaders of Hunan Government, the strategic framework agreement was signed off between Valin and ArcelorMittal. In Aug 2008, VAMA joint venture contract was finalized in Changsha. In 2009, formal Hunan Governor Zhou Qiang and Mr. Mittal, Chairman of ArcelorMittal, both participated foundation ceremony of VAMA in Loudi. In Jun 2010, VAMA project received approval from NDRC (National Development and Reform Commission) and this is one of rare projects approved by NDRC. On 27th Sept 2010, the Company VAMA was established. On 30th Mar 2011, VAMA convened the first board meeting. In Dec 2012, bidding for main equipment lines was completed.
After the announcement between Valin and ArcelorMittal to deepen strategic cooperation, VAMA project construction entered acceleration phase with 2 year construction time. VAMA project will start production on 6th Jun 2014 with <300 days remaining from today. So far, the project completed over 2 million safety hours and has zero accidents. On 21st Jul 2013, VAMA started to install equipments. In addition to building the hardware with world class assets, we also focus on building the modern software with developing a talented multi-cultural team, enterprise work culture, and strong brand. On 4th May 2013 under the theme of “One Team, One Dream”, VAMA had the first team building event. On 23rd Jul 2013, with participation of all VAMA employees, VAMA brand launch event was organized. Partners, Quality, People-centric, Corporate Responsibilities are core values of VAMA brand.
VAMA project construction plan