Luxembourg-based steel giant ArcelorMittal has announced that it will increase its shareholding in its automotive steel joint venture VAMA (Valin ArcelorMittal Automotive) with Chinese Valin Group from 33 percent to 49 percent. VAMA will focus on supplying high-strength steels and value-added products for China's fast growing automotive market.
According to the new shareholding agreement, Valin and ArcelorMittal will increase their planned capacity by 25 percent from 1.2 million mt to 1.5 million mt. Capital investment will also increase by 15 percent to RMB 5.2 billion ($817 million). The joint venture is expected to become operational in the first half of 2014.
In addition, ArcelorMittal could also adjust its shareholding in Hunan Valin Steel by potentially selling up to 19.9 percent of 600 million shares it holds in Hunan Valin Steel to Valin Group. As a result, ArcelorMittal would own a 10.07 percent stake in Valin Steel within the scope of long-term strategic cooperation.