ArcelorMittal Chairman and CEO, Mr. Mittal, was invited to participate the 5th Global CEO Council meeting with Premier Li at the Great Hall of the People on 7th Jun 2017. During the meeting, Mr. Mittal talked about ArcelorMittal has invested heavily in leading R&D centers, most advanced production facilities to meet high requirements of clients. Automotive steel is one such example where we are the leading supplier worldwide to automotive manufacturers.


ArcelorMittal Chairman and CEO, Mr. Mittal, was invited to meet with Premier Li
▲ Group photo for ArcelorMittal Chairman and CEO, Mr. Mittal with Premier Li and other representatives.


ArcelorMittal has extended automotive steel franchise to China, with major production facility (VAMA, in partnership with Hunan Valin Group), in Hunan province, with investment of around $ 1bn. High strength light weight steel for automotive can make automotive industry more environmental friendly and enhance passenger safety.


VAMA is an example of supply side reform – whereby it takes hot rolled coils (which are in excess supply) and using high technology process to convert into high strength automotive steel (which are in short supply).


ArcelorMittal Chairman and CEO, Mr. Mittal, was invited to meet with Premier Li
▲ Group photo for Premier Li and participating members.














▲ Coverage by CCTV news program.




















On the morning of May 4, a technology interconnection and innovation exchange meeting between GAEI and VAMA&GONVVAMA was held in the GAEI building. In spite of the rain, more than 130 guests arrived at the venue, a multi-functional conference hall that can accommodate only 100 people formerly.


GAEI is the first stop of VAMA&GONVVAMA technology interconnection and innovation exchanges in 2017. VAMA&GONVVAMA introduce weight lightening steel solutions, door ring and other technical exhibitions, S-in Motion ® technical posters, etc. at the GAEI.attracting more than 200 representatives fromGAC Motor, GAEI and others, covering materials, body, NVH,vehicle integration, R&D, stamping, welding, safety and other fields.


Fan Jiachun, Vice-President of GAEI,attended the meeting and delivered the greeting remarks, welcoming on-field technical exchanges from VAMA&GONVVAMA and expressing expectations for future cooperation.




VAMA CEO Fernando made an address to the participants that VAMA&GONVVAMA, one of the few full-range automotive steel products and solutions providers in China, would be committed to supplying the most advanced and comprehensive automotive steel solutions for the automotive industry in China, helping carmakers cope with the challenges of lightweight, safety and environmental protection.


VAMA CEO费尔南德向参会嘉宾致辞


"VAMA and GONVVAMA always put customer’s demand at core position. We will invest the available resources and technologies into the current and potential projects in GAC, to fully support the future development of GAC."


· Venue and exhibition layout



· Vice-President Fan Jiachun visited exhibition area



· VAMA&GONVVMA advanced automotive steel products and solutions are presented in various forms at the exchange site, attracting a great number of GAC guests.



· Technical experts from ArcelorMittal, VAMA&GONVVAMA make themed presentations to the customers.



· Customer representatives listen to the presentation carefully and exchange with the technical experts.



New Audi A8 follows recent trend of automakers to increase the use of advanced steels


Audi’s A8 switches back to steel after experimenting with aluminium in its luxury models. Scheduled for release in 2018, the body structure of the new A8 will be made up of over 40 percent steel, following the trend to use more advanced steels. That’s a marked turnaround on the all-aluminium body-in-white which Audi developed for the A8 in 1994.


Audi A8: steel makes a comeback

Aluminum sheet
  Ultrahochfester Stahl (warmumgeformt)
Ultra-high strength(hot-formed)
 Aluminum section
  Konventioneller Stahl
 Conventional steel
 Aluminum castings
  Kohlenstofffaserverstarkter Kunststoff (CFK)
 Carbon fiber-reinforced plastic(CFK)



Press hardenable steels lead in safety


Steel has moved on dramatically since the 1990s. Around 17 percent of the new A8 body structure will be comprised of press hardenable steel (PHS), some of which will be supplied by ArcelorMittal. These steels have yield strengths up to 1500 MPa after press hardening. The strength-to-weight ratio of these grades outperforms even the most advanced (and costly) aluminium.


“There will be no cars made of aluminium alone in the future. Press hardened steels (PHS) will play a special role in this development. PHS grades are at the core of a car’s occupant cell, which protects the driver and passengers in case of a collision. If you compare the stiffness-weight ratio, PHS is currently ahead of aluminium."

—— Dr. Bernd Mlekusch, head of the Audi’s Leichtbauzentrum


Change in composition of the A8 body structure


  Old A8 D4 (2009) New A8 D5 Change
Steel 8% 40.5% (17% PHS) +32.5%
Aluminium 92% 58% -34.0%
Other materials 1.5% +1.5%


One area that benefits is safety. Dr. Bernd Mlekusch, head of the Audi’s ‘Leichtbauzentrum’ (Lightweight Construction Center) was recently quoted as saying that the use of more steel in the new Audi A8 should help to improve the way cars are made lighter: “There will be no cars made of aluminium alone in the future. Press hardened steels (PHS) will play a special role in this development. PHS grades are at the core of a car’s occupant cell, which protects the driver and passengers in case of a collision. If you compare the stiffness-weight ratio, PHS is currently ahead of aluminium.”

(source: Frankfurter Allgemeine Zeitung, ‘Audi: more steel in cars in the future’, published 11 April 2017)


Growing trend to use advanced steels


The use of AHSS in today’s vehicles is outpacing the steel industry’s own forecasts:


Year Forecast (kg) Actual (kg) Change (kg) Increase of AHSS (%)
2012 88.0 93.0 5.0 +5.7%
2013 96.6 106.6 10.0 +10.3%
2014 105.2 115.2 10.0 +9.5%
2015 113.9 124.7 10.9 +9.6%

Increase in the use of AHSS grades in automotive 2006-2015 (source: Steel Market Development Institute – SMDI):


Audi A8: steel makes a comeback

  2014 Additional AHSS Pounds per Vehlcle AHSS continues its growth trajectory with 254 pounds per vehlcle in 2014, surpassing our estimates in 2010 for 2014 by over 20 pounds per vehlcle (prior 2014 estimate was 232 pounds)
  2010 Release


New joining technologies


With the advent of new joining technologies, it has never been easier for automakers to incorporate advanced high strength steels into their vehicles. As these technologies mature and are adopted by carmakers, the use of PHS in the multi-material vehicles of the future is set to grow strongly.


Life Cycle Analysis benefits


ArcelorMittal and the steel industry as a whole have been working collaboratively to educate automakers and stakeholders on the importance of life cycle analysis, or LCA. LCA looks at total emissions generated during the three stages of a vehicle’s life – production, drive phase and disposal.


“Right now, regulations only consider tailpipe emissions generated during the drive phase,” said Brad Davey, chief marketing officer, NAFTA and global automotive for ArcelorMittal. “However, each material used in vehicle production contributes to lightweighting and improves fuel economy, but each does so at a different cost to the manufacturer – and to the environment.”


Studies show that aluminum emits four to five times more GHGs than steel. “If we want to know how “green” a vehicle really is, we have to measure emissions over its entire life cycle. Otherwise, choosing an alternative material over advanced steel will result in a huge and irreversible environmental mistake,” said Davey.

The coated hot stamping steel Usibor®1500 is a mainstream automotive steel solution for enhancing light-weighting and safety in Chinese automotive industry.


With the objective of being transparent and traceable to the customers in the process of taking current and future decisions in adopting Usibor®1500, VAMA has made a decision to implement this policy of announcing base price. 


VAMA has also decided, due to increase in raw materials costs, to set the standard price of Usibor®1500 in H1 of 2017 as RMB 8,350 / T Basis Price Ex Work VAMA factory. Extras will be added for different spec and logistics upon delivery point.  


The base price of RMB8,350 /T is an ex works base price without VAT for Usibor®1500, and does not include any extras for specific sizes, tolerances, surface treatment, coil weight, packing, transport and financial costs.


Aiming to be the best light-weighting solution provider, VAMA is to provide the price logic for Usibor®1500 and the most cost effective solution to customers.

Follow the Trend for Further Cooperation


10 January 2017, Loudi, Hunan, VAMA board of directors met with general secretary of Loudi CPC Li Jianguo and Loudi municipal government mayor Yang Yiwen and shared steady development in product homologation, market sales increase through replacing imports and auto parts for running and new car models. With continuous support and commitments by Loudi government in building world class infrastructure, VAMA is positioned as premium automotive steel brand and world class enterprise that will be new pride of Hunan province.


As an example of implementing “supply side reform” in the steel industry, VAMA’s stable development in 2016 laid a solid foundation for its ambition of becoming the most recognized provider of automotive steel solutions in China. VAMA is focusing on taking HRC as input, which is in excess capacity, and transforming into high end automotive steel, which is in shortage and relies on imports.


As of today, VAMA have passed the very strict audits by almost all the major automakers and completed homologation of mild steel, DP600, Usibor®1500 with key customers such as DPCA, Ford, BAIC, GAC FCA, Daimler, Geely, etc. VAMA has made significant progress in achieving stable production and market supply of high quality automotive steel grades including AHSS and patented products such as Usibor®1500.


Governments’ support in helping VAMA to build up necessary infrastructure and establish favorable surrounding environment carries on. The support allows VAMA to provide customers with stable supply of quality products and leading solutions. Hunan government and Loudi municipal government have supported timely implementation of infrastructure necessary for the project such as road network around VAMA, 220Kv substation, and construction of industrial gas pipelines and natural gas.


Loudi government reiterated during the meeting its continuous support to VAMA, including helping VAMA to build world class infrastructure by committing to undertake construction of railway and 50 meters greenbelt area around VAMA facility. Meanwhile, Loudi government supports VAMA to build into a world class factory, becoming a benchmark factory in Hunan even in whole China.


Follow the Trend for Further Cooperation


Aiming to bring the latest and most comprehensive advanced steel solutions to the automotive industry in China, VAMA has being equipped with capabilities of providing customers added value service because of strong support from ArcelorMittal for EVI service and readiness of downstream network GONVVAMA. Working together with GONVVAMA, VAMA can serve Chinese OEMs with expertise like LWB, the door ring solutions and new coating solutions.


Automotive customers acknowledge and value the unique position of VAMA being able to supply the full range of automotive products for car bodies, along with engineering support and tailored products obtained on GONVVAMA downstream lines. VAMA is now a reliable partner of Chinese automotive industry to take on challenges coming from increasing demand for quality vehicle, stricter emission regulation and more stringent safety requirements.


Visiting VAMA board of directors were consisted of ArcelorMittal Executive Vice President, Brian Aranha, Valin Steel General Manager & VAMA Chairman Yan Jianxin, ArcelorMittal CEO of China & India Sanjay Sharma and Valin LYS CEO Xiao Zunhu. VAMA CEO Fernando Teixeira and CPC Secretary & COO Jiao Guohua participated in the meeting.


About VAMA


Valin ArcelorMittal Automotive Steel Co., Ltd., is a joint venture between Hunan Valin Group and ArcelorMittal with 50% and 50% held by Valin Group and ArcelorMittal respectively. The company is headquartered in Loudi, Hunan with a distribution network throughout the country. Sales and service centers in Changsha, Beijing, Shanghai, Guangzhou, and Chongqing ensure close proximity to customers. With more than 700 employees throughout China, VAMA is committed to providing light weighted automotive steel products with high quality for the growing needs of the domestic automobile industry in China.

Follow the Trend for Further Cooperation


New grades will help automakers achieve mandated lightweighting targets and promote more sustainable lifestyles.


8 November 2016 – ArcelorMittal is expanding its global portfolio of automotive steels by introducing a new generation of advanced high strength steels (AHSS). These innovative steels include the launch of new press hardenable steels (PHS) Ductibor® 1000 and Usibor® 2000 – both of which are already available for OEM qualification testing in Europe – and martensitic steels MartINsite® M1700 and M2000. The company is also preparing to expand its family of third generation advanced high strength steel (3G AHSS), which currently includes Fortiform® 1050 in Europe, starting in 2017. Together, these new steel grades will help automakers further reduce body-in-white weight to improve fuel economy without compromising vehicle safety or performance.


“The launch of these steels aligns with our Action 2020 program, a strategic roadmap that aims to achieve targeted financial improvements for the company by 2020,” said Brian Aranha, executive vice president, global automotive, ArcelorMittal. “Action 2020 efforts include cost optimization and steel shipment volume increases, as well as an improved portfolio of high added value products. These products ensure ArcelorMittal is best positioned to meet customer requirements via a strong technical and product portfolio.”


ArcelorMittal is now able to provide samples of Ductibor® 1000 to customers for qualification testing in North America. Ductibor® 1000 is a high-strength press hardenable steel that offers good energy absorption capacity. Typical applications for Ductibor® 1000 include energy absorption parts such as front and rear rails and lower B-pillars.


Usibor® 2000, an aluminum-silicon coated PHS and stronger than its predecessor Usibor® 1500, enables automakers to fabricate parts with complicated geometry at a very high strength without formability or springback challenges. Typical applications for Usibor® 2000 include strength-critical passenger compartment parts such as rockers, pillars, roof rails and cross members. Usibor® 2000 is currently available in Europe for OEM qualifications and will be available in North America in early 2017 with commercial production expected in late summer 2017.


Follow the Trend for Further Cooperation


“Usibor® is our key product in hot stamping and has been a major commercial and technical success in the global automotive industry,” said Mr. Aranha. “Looking ahead, the scope of hot stamping products in vehicles will continue to increase with the release of more advanced products like Usibor® 2000, which offers 10 to 15% weight savings when compared to existing hot stamping solutions.”


Usibor® 2000 is compatible with standard press hardening technologies and processes. Combining Usibor® 2000 with Ductibor® 1000 or other PHS into laser welded blanks (LWB) offers several significant advantages. These advantages include weight saving, improved crash behaviour and cost savings through material and manufacturing optimisation.


ArcelorMittal is also expanding its MartINsite® family of products to include MartINsite® M1700 and M2000, joining currently available MartINsite® M900, M1100, M1300 and M1500.


“MartINsite® is a very strong family of steels which are perfect for anti-intrusion parts such as bumper and door beams,” explained Mr. Aranha.


ArcelorMittal will have MartINsite® M1700 and M2000 available for OEM qualifications by mid-2017. The grades will be available for commercial production in early 2018.


All MartINsite® steels, Usibor® 1500 and 2000, and Ductibor® 500 and 1000 are all patented by ArcelorMittal.


Follow the Trend for Further Cooperation


ArcelorMittal is also investing in AM/NS Calvert, its joint venture with Nippon Steel and Sumitomo Metals Corp. in Alabama, USA, to produce 3G AHSS cold-stamping steels in North America. Currently available and branded as Fortiform® in Europe, these High Formability (HF) steels provide strengths similar to the strongest dual phase steels, but with higher ductility and cold formability.


ArcelorMittal will produce cold-rolled and galvanized/galvannealed versions of HF 980 and HF 1180 in North America, targeting OEM qualifications by mid-2017. Commercial production, beginning with the cold-rolled grades, will occur in late 2017. Thanks to their excellent mechanical properties, these HF grades are particularly suitable for components limited by energy absorption, such as front and rear rails and upper motor compartment rails.


In Europe, an investment program is underway at ArcelorMittal Gent and ArcelorMittal Liege in Belgium, to increase ArcelorMittal’s annual European production of 3G AHSS.


Globally, ArcelorMittal boasts some of the most technologically advanced automotive steelmaking operations and incorporates a range of modern steelmaking technologies. Approximately 30% of the company’s global R&D budget – $227 million in 2015 – is for automotive research. Half of ArcelorMittal’s 1,300 researchers focus on automotive.


"ArcelorMittal's current and emerging catalogue of automotive products and solutions supports carmakers in optimising vehicle weight and cost, while meeting stringent safety standards. We are also committed to manufacturing products that advance sustainable lifestyles. Steel helps cars to be lighter, which reduces carbon emissions, but it is also infinitely and easily recyclable. Additionally, compared to competing materials, steel has a significantly smaller environmental footprint.” concluded Mr. Aranha.

– VAMA committed to becoming a shining example of Sino-foreign joint ventures


Follow the Trend for Further Cooperation


On October 18, Mr. Xu Dazhe, Deputy Party Secretary and Acting Governor of Hunan Province, paid an official visit to Valin ArcelorMittal Automotive Steel Co., Ltd. (hereinafter referred to as VAMA or Auto Steel Company), highly praising the first-class automotive steel production lines and on-site management of the company. Meanwhile, he pointed out that VAMA should digest and absorb ArcelorMittal’s advanced technology and management expertise as soon as possible, actively implement the innovation-driven development strategy, and further enhance its market share and business efficiency.


Mr. Du Jiahao, current Party Secretary of Hunan Province, also stated in the media interview that Hunan should focus on the development of high-strength lightweight automotive steel and high-strength corrosion-resistant shipbuilding plate, so as to promote high-quality steel industry in the pursuit of better product portfolio through years of efforts.


It can be seen obviously that Hunan has attached great importance to the development of automotive steel. Moreover, a set of data recently released by Hunan Province appears to have boosted the confidence of Hunan in the growth of automotive steel: since 2013, Hunan’s automotive manufacturing industry has recorded an industrial added-value significantly higher than the average level of scale-sized industries of the whole province. From January to September this year, the added value of Hunan’s automotive manufacturing industry presented a year-on-year increase of 39.7%, contributing 19.1% to the growth of scale-sized industries of the whole province. The rate of 39.7% is far higher than the average level of the growth of national automotive sector. In 2015, the automotive production in Hunan reached 636,000 units, and is expected to exceed 900,000 units in 2016. In 2016, enterprises in the province such as Shanghai Volkswagen, GAC Fiat Chrysler, BYD, Geely, Changfeng and BAIC Zhuzhou are expected to reach RMB10 billion.


Follow the Trend for Further Cooperation


As Valin Steel is transforming itself from steel enterprise to enterprise in finance services and power generation, through major asset restructuring, ArcelorMittal decided to exit Valin Steel as future business of Valin Steel are not the core business of ArcelorMittal. On August 2, Valin Steel announced that the company’s second-largest shareholder ArcelorMittal had signed a share transfer agreement with Hunan State-owned Enterprise Innovation Private Equity Fund Co. Ltd., in which ArcelorMittal transferred all of its shares in Valin Steel, which were 303,939,125 shares, to Hunan State-owned Enterprise Innovation Private Equity Fund at the trading price of RMB3.63 per share.


ArcelorMittal and Hunan Valin continue to strengthen their strategic partnership on high technology oriented business of automotive steel. ArcelorMittal plans to enhance its commitment to VAMA through increasing its shareholding in VAMA from 49% to 50%, participation in management team, bringing new products to VAMA portfolio and providing the loan for working capital. VAMA has introduced ArcelorMittal’s most advanced automotive steel technology in the world and transformed the excess capacity of hot rolling to process and produce high-end automotive steel that is in shortage in the market and has relied upon imports for a long term. VAMA’s total investment in the first phase amounts to RMB5.2 billion, and the construction scale is based on 2.3 million tons, of which the construction project in the first phase is 1.5 million tons and has been approved by the National Development and Reform Commission and become a key project of Hunan Province.


Follow the Trend for Further Cooperation


“ArcelorMittal continues to deepen and strengthen its cooperation with Hunan Valin Group in the auto steel project. To serve highly demanding automotive customers, the excellence and efficiency of entire supply chain is critical: Upstream plant of Lianyuan Steel to VAMA to Downstream facilities of Automotive Lightweight Technology Solution Center located at various automotive clusters. The weakest link in the entire supply chain decides the highest possible efficiency so it becomes critical to have highest level of performance across the entire supply chain. ArcelorMittal’s technical experts are working closely with upstream facilities of Lianyuan Steel which provides input Hot Rolled Coils substartes to VAMA and similarly a strong focus is on downstream facilities which produce the value added products for delivery to automotive manufacturers.” ArcelorMittal China and India CEO Sanjay told the reporter.


It is known by the reporter that VAMA’s not only has access to world class technology but also to modern management practices and operating know-how. ArcelorMittal has provided many senior managers and technical experts to facilitate the technology and know-how transfer to VAMA.


According to reports, ArcelorMittal’s lightweight auto steel solution can reduce 19% of the weight of the body in white and 14% of carbon emissions by optimizing the weight of 43 parts of the vehicle. VAMA’s core product, Usibor® 1500, is a hot-stamping steel used for automotive structure and safety components. The final part after hot stamping features very high mechanical strength and is 30-50% lighter than conventional cold-stamping parts. At present, VAMA has obtained ArcelorMittal’s exclusive patent in China and can steadily produce the unique Al-Si coated hot-forming steel Usibor®1500 and the Ductibor used with laser welding. The combination of both can be used to manufacture “B-pillar with soft zone”, and when the strength of B-pillar reaches 1,500 MPa, the need of energy absorption can be satisfied to protect the safety of passengers to the greatest extent.


Follow the Trend for Further Cooperation


In addition to the advantages of the product, VAMA is currently working with Gonvarri, a global leader in automotive sheet processing services, by means of a joint venture GONVVAMA and is building a processing and distribution base. GONVVAMA is headquartered in Changshu, and four major processing and distribution bases in Loudi, Changshu, Shenyang and Chongqing are well under construction and will be put into operation by the end of this year or early next year. VAMA and GONVVAMA will bring leading-edge solutions to the Chinese market, such as Tailor Welded Blank technology, integrated door ring forming, new coating solutions for automotive steel and lightweight body solutions. The introduction of above solutions will mainly help the automotive industry achieve lightweight body, reduce greenhouse gas emission, and enhance passenger safety.


VAMA has obtained technical support from ArcelorMittal’s global R&D centers, and ArcelorMittal has also set up an early vendor involvement (EVI) team for car models in China and sent experts from its R&D departments who have over 20 years of service experience in the automotive industry. EVI team provides support of the latest technology and solutions to OEMs in the early stage of model design, and serve VAMA’s automotive customers. “VAMA is in a business of enhancing passenger safety and making cars more environmental friendly. VAMA has strong technical advantage, managerial experience and brand strength, and we are confident to jointly with Hunan Valin, to build VAMA into a high-caliber leader among Chinese automotive steel suppliers.” Sanjay told the reporter.


It is reported that, from April to October, VAMA & GONVVAMA has made five technical roadshows around the country, and all the international and Chinese-branded OEMs and major first-tier suppliers in the Chinese market have sent representatives to participate in the events, and more than 560 relevant customer representatives have attended the roadshow activities.


Follow the Trend for Further Cooperation


So far, VAMA has successfully passed almost all the certifications for OEMs, and has completed the certifications of steel grades and trademarks such as ultra-high strength steel and Usibor®1500 for important customers including Dongfeng Shenlong, Ford, GAC Fiat Chrysler, Daimler, Toyota, Honda, FAW-Volkswagen, Nissan, BAIC and Geely.


“ArcelorMittal and Valin join hands in the automotive steel, but they are not limited to the automotive steel. As Lianyuan Steel provides automotive substrates to VAMA, ArcelorMittal has provided Lianyuan Steel with a full range of technical quality support in upgrading process technology, innovating grade R&D and improving the physical quality of products. ArcelorMittal’s technical team also insists on carrying out technical exchanges and seminars once a week with relevant personnel of Lianyuan Steel in order to achieve rigorous quality control over developed products, improve management of all aspects in an all-round way, and focus on the development of independent innovation capability of Lianyuan Steel.” Mr. Cao Huiquan said.


The Acting Governor of Hunan Province Visited VAMA


On 18th October, the acting governor of Hunan province Xu Dazhe, paid an official visit to VAMA.


At VAMA,Xu Dazhe visited the PLTCM, CGL and CAL lines as well as communicated with the management team,praising the advanced production facilities. He stated that as a sample of the reform of supply front in steel industry,VAMA should absorb the advanced technologies from ArcelorMittal to actively implement the innovation-driven strategy and explore the high end automotive steel market. Xu Dazhe expected VAMA to make contributions to the development of the automotive industry cluster and the new-type industrialization in Hunan.


The Acting Governor of Hunan Province Visited VAMA


VAMA is a joint venture between Valin Group and ArcelorMittal, targeting at the high end automotive steel market, as a provider of the most advanced products and solutions, helping create lighter, greener and safer vehicles. VAMA has an annual capacity of 1.5 million tons automotive steel products, thanks to the quality hot rolled coil supply from Valin LYS and the advanced technologies and knowhow from ArcelorMittal.


VAMA is a result of seamless cooperation among partners. GONVVAMA, the joint venture between VAMA and Gonvarri, has brought to Chinese automotive industry the advanced technology and service like LWB and door ring. Gonvarri is a world leading steel processing service provider, obtained recognition from a wide range of international OEMs.