LTV, Bethlehem form JV steel-processing firms
By Staff -- Purchasing, 9/2/1999
LTV Steel and Bethlehem Steel have created two 50-50 joint-ventures in Ohio to serve automotive customers: Columbus Coatings, a producer of high-quality, hot-dip galvanized and galvannealed sheet steel, and Columbus Processing, a steel slitting and warehousing operation.Columbus Processing is, in fact, a new name for the former Ohio-based Kanpoh Steel, which ceased operations in May. The facility is expected to resume operations in early 2000. Columbus Coatings will install state-of-the-art hot-dip galvanizing technology at an existing electrolytic galvanizing plant, L-S II, located in Columbus (formerly a joint venture of LTV and Sumitomo Metal Industries). The new company will have annual capacity to produce 500,000 tons of premium corrosion-resistant steel for exposed automotive applications. Production is scheduled to begin in the fourth quarter of 2000.
"The conversion of our existing electrogalvanizing facility offers a very cost-effective way for LTV to serve our automotive customers' growing needs for highest quality hot-dip galvanized steel," says Peter Kelly, CEO of Cleveland-based LTV Corp. (LTV Steel's parent). "This joint venture will enhance both companies' hot-dip-coating capacity while eliminating some excess electrogalvanizing capacity," notes Curtis H. Barnette, CEO of Bethlehem Steel.
In establishing the joint venture, Bethlehem acquired 50% interest in the L-S II electrogalvanizing joint venture from Sumitomo Metal Industries. LTV retains its 50% interest in L-S II and acquires from Bethlehem a 16.5% equity interest in Walbridge Coatings, an electrogalvanizing plant in Ohio. The Walbridge venture previously was a 50-50 partnership between Bethlehem Steel and Material Sciences Corp. of Elk Grove Village, Ill.
LTV Steel produces coated steel sheets at plants in East Chicago, Ind., Hennepin, Ill., and at its L-S Electrogalvanizing joint venture in Cleveland. In addition to the existing Walbridge line, Bethlehem produces coated steel sheets at Burns Harbor, Ind., and Lackawanna, N.Y.
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