High-strength steel products
Vehicles’ growing aluminum intensity concerned the steel industry. The steel industry reacted quickly to the situation. Major steel plays are investing massive amount of money in research and development projects. The objective is to work with automakers to produce steel products that weigh less. In this part of the series, we’ll analyze how major steel plays are positioning themselves.
ArcelorMittal launches a new product
ArcelorMittal (MT) has several lightweight steel products in its arsenal. Recently, it launched a new product—Fortiform. The new product will enhance its product portfolio. This product will help MT meet its customers’ lightweighting needs in automotive industry.
AK Steel works closely with automobile companies
Automobile companies account for more than half of AK Steel’s revenues. This makes it AK Steel’s (AKS) most important customer segment. AKS is also working closely with its customers to develop lightweight steel products.
US Steel announces new management team
US Steel Corp. (X) announced a new management structure. Under this structure, it will have James E. Bruno as the vice president of its automotive solutions. Before joining US Steel, Bruno worked with TRW Automotive for 20 years. It’s a very interesting development. US Steel appointed an automotive industry expert to lead its steel operations.
The above chart shows US Steel’s Carnegie Way program. The new management structure is the latest strategic initiative under the program. Carnegie Way was launched by Mario Longhi. He’s the company’s current CEO. Longhi spent 23 years with Alcoa (AA) before he joined US Steel.
The SPDR S&P Metals and Mining ETF (XME) has Alcoa and US Steel as its top holdings.
In the next part of this series, we’ll discuss why vehicle lightweighting can be an opportunity for steel and aluminum plays.