ArcelorMittal Chairman and CEO, Mr. Mittal, was invited to meet with Premier Li

The global automotive manufacturing industry operates within a busy regulatory environment. This is certainly the case here in China. Things are moving very quickly, with a regulation framework that is becoming more stringent and demanding. So the challenge for suppliers is not only to match the regulation but to do so within the very short timescales set by the authorities.


There are two main aspects. One is to drastically improve fuel efficiency in China’s car fleet, with the target to reach an average consumption of no more than 5 litres per 100 kilometres by 2020. A further target of a maximum of 4.5 litre per 100 kilometre is anticipated for the period after.On emission standards, China wants to achieve a Euro 6 equivalent by 2020.


Then comes safety regulations. It is very likely that new crash management standards will be in place in China by next year, raising the requirements here to match those of the US.


A further issue to consider is supply chain reform. The government wants to see China’s industry move from pure manufacturing base to one with more high technology content, and that there be greater domestic ownership of the key developments that are driving the industry.


The latter particularly resonates with China’s domestic car makers who are receiving a strong push and pull from the government to upgrade technology content in the products they are developing and selling domestically.


There is also an enormous impact on the supply side.China’s government wants to make sure that solutions and products are available locally to support its initiative.In other words, they want the automotive industry to strive for self-sufficiency in innovation and supply components rather than rely on the need to import.


In all of these aspects around innovation, advancement and supply, VAMA is ready to play a key role.


As a joint venture between ArcelorMittal and Valin Group,VAMA covers a full range of steels commonly used in car design. The ArcelorMittal-owned and patented family of steels start from mild steel grades and extends to steels that have very high strength limits, e.g. Dual Phase products DP980 and DP1180HY.



Across the automotive manufacturing industry, cost control and a streamlined supply chain are crucial aspects. In recent years, Gonvarri has successfully developed these competences to build an expansive network of distribution centres in Europe and other regions of the world, including China.


VAMA and Gonvarri have formed a new company – GONVVAMA– run as a joint venture in China. Its first service centre, based close to the VAMA headquarters in Loudi, Hunan Province, began operations last year. Two more centres opened in March 2017,in Shenyang and Changshu. Later this year a Chongqing service centre will be added to the portfolio.


The network means that VAMA is bringing supply and service closer to its customers in many of China’s main automotive clusters. The scope of GONVVAMA is to manage the supply chain.Then, in addition to this, the service centres are adding value by shaping the steel and providing welding operations that combine sheets of differing thickness and grade. The mix of hot stamping and laser welding is again delivering weight reduction so that the car makers can tailor the steel grade and thickness of a component to their own specification.

In addition, new product launches for the Chinese market
will include the hot stamping steel grades, Usibor 1500 and
Ductibor 500. It is steel technology that has been used in
the past by international car makers and VAMA’s aim is
to ensure that these solutions are now available locally in


Hot stamping


Over a relatively short period of time, hot stamping technology has forged a path with impressive speed into the Chinese market. It was first introduced by the international OEMs and has quickly been adopted by the domestic car makers over the past three or four years.


“The role of AHSS in EV productionis becoming more important, thesecars are a high priority in China”


The situation now is that the number of hot stamping lines in China is equivalent to that of the rest of the world combined.


VAMA has been developing new steel grades in this hot stamping family. The Usibor 2000 steel grade is a new and even stronger steel, due to come to market next year. It will assist OEMs reduce the weight of cars even further. From a

car that is, say, 300kg, Usibor 2000 can win back around 20-30kg, helping to meet environmental regulations but, as the grade is stronger, without jeopardising safety.


ArcelorMittal Chairman and CEO, Mr. Mittal, was invited to meet with Premier Li

VAMA will be licensed to produce ArcelorMittal’s latest grades for hot stamping, Usibor 2000 and Ductibor 1000, for the Chinese market


Looking at other grades, Ductibor 1000 is being developed to combine high strength with high ductility helping OEMs produce parts with a complex shape. They can still use hot stamping technology and retain the high crash resistance and energy absorption qualities.


As one example, VAMA is working with OEMs on a door ring, a body side reinforcement made from hot stamped steel grades. VAMA is able to supply blanks, pre-welded, that the OEM’s press shop can stamp — in a single operation —to create the part.


In addition, VAMA and ArcelorMittal have been working on steel technologies for parts such as visible panels (boots,roofs, doors) where car makers require higher quality surface standards.

ArcelorMittal Chairman and CEO, Mr. Mittal, was invited to meet with Premier Li

As a joint venture between ArcelorMittal and Valin Group, VAMA covers a full range of steels commonly used in car manufacturing


EV car production


The role of AHSS in EV production is becoming more and more important and these cars are a high priority in China.In 2020, China’s target is to produce two million electric cars; and to double that by 2025. Weight savings in this type of vehicle are crucial as the battery itself accounts for much of car’s overall weight.


Looking specifically at the requirements for electric vehicles, the battery and the battery cover also come with significant safety and crash protection considerations. There will be strong push to get AHSS into this type of car.


Meeting demand in China


As a major VAMA shareholder, ArcelorMittal offers great support on a technology level and VAMA will be licensed to manufacture the latest grades, Usibor 2000 and Ductibor 1000, for the Chinese market. ArcelorMittal also brings competence in co-engineering. As regulation becomes
more stringent, OEM design centres in China are working quickly to make the next generation of cars safer and lighter.ArcelorMittal works with these design centres, bringing its expertise to the efforts on weight reduction, crash protection and the other aspects where steel technologies assist.


VAMA’s other major shareholder is Hunan-based supplier Valin Group, which provides the primary material.Upgrades and technology transfer at the production facility means that VAMA can be sure that the base material it receives from Valin successfully matches the requirements and standards expected within the automotive industry.


VAMA Announces New Usibor®1500 Price


VAMA – Valin ArcelorMIttal Automotive – leading supplier of hot stamping material in Chinese market announces a price adjustment to be valid for the H2/2017.


New base price for Usibor® 1500 is RMB 8,700 /T Basis Price Ex Works VAMA factory. Extras will be added for different spec and logistics upon delivery point.


The base price of RMB 8,700 /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.


The key drivers for this price adjustment are related to the consistent raw material prices increase (iron ore, coking coal, metallic scrap) as well as to Aluminum raw material price increase.


VAMA confirms its commitment  in serving the market with high technology products enabling our customers to achieve challenging targets in terms of weight and emission reductions as well as increasing the safety of the vehicles.


Start of validity: September 01st 2017

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.