According to media reports, US Steel said it still plans to move forward with a new $400 million continuous galvanizing line for advanced high-strength steels at the PRO-TEC Coating Co. subsidiary in Leipsic, Ohio. The joint project with Kobe Steel was announced in September.
Weeks later, Kobe Steel became the center of a scandal after admitting to falsifying data about the quality of some of its aluminum, copper, iron ore and steel products. The company estimates it has shipped substandard products to as many as 500 customers, including copper tube, wire, plane and bullet train makers.
"US Steel remains committed to our new Advanced High Strength Steel CGL and bringing solutions to our customers," US Steel spokeswoman Meghan Cox told local media.
However, Cox did not specify whether the line would still be built as a joint venture with Kobe Steel, with news reports pointing out the threat of serious lawsuits against the Japanese company.