Steel giant ArcelorMittal (MT - Free Report) announced that it is expanding its global portfolio of automotive steels by launching a new generation of advanced high strength steels (“AHSS”). The innovative steels include the launch of press hardenable steels (“PHS”) Ductibor 1000 and Usibor 2000 as well as martensitic steels MartINsite M1700 and M2000. Both Ductibor 1000 and Usibor 2000 are available for OEM qualification testing in Europe.
Further, the company is planning to expand its family of third-generation advanced high strength steel (3G AHSS), which currently includes Fortiform 1050 in Europe, beginning in 2017. The launch of these steels is in sync with the company’s Action 2020 program that aims to achieve targeted financial improvements for the company by 2020. The Action 2020 program includes plans to optimize costs and increase steel shipment volumes, along with improving the portfolio of high added value products. These products will ensure that it is best positioned to meet customer requirements via a strong technical and product portfolio.
ArcelorMittal is able to provide samples of Ductibor 1000 to customers for qualification testing in North America. Ductibor 1000 is a high-strength press hardenable steel that provides good energy absorption capacity.
Usibor 2000, an aluminum-silicon coated PHS that allows the automakers to fabricate parts with complicated geometry at a very high strength without formability or springback challenges. Usibor 2000 can be applied for strength-critical passenger compartment parts such as rockers, pillars, roof rails and cross members. Usibor 2000 will be available in North America in early 2017 with commercial production expected in late summer 2017.
Moreover, ArcelorMittal is expanding its MartINsite family of products to include MartINsite M1700 and M2000. The steel maker will have MartINsite M1700 and M2000 available for OEM qualifications by the middle of next year, while the grades will be available for commercial production in early 2018.
ArcelorMittal will make cold-rolled and galvanized/galvannealed versions of HF 980 and HF 1180 in North America, targeting OEM qualifications by mid-2017. Commercial production, beginning with the cold-rolled grades, will take place in late 2017.
ArcelorMittal’s shares rose roughly 9% to close at $6.96 on Nov 9.
ArcelorMittal currently carries a Zacks Rank #2 (Buy).
Other favorably placed companies in the basic materials space include Innophos Holdings Inc (IPHS - Free Report) and POSCO (PKX - Free Report) sporting a Zacks Rank #1 (Strong Buy) and Celanese Corporation (CE - Free Report) carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Innophos has an expected earnings growth of 51.4% for the current year.
POSCO has an expected earnings growth of 914.3% for the current year.
Celanese has an expected earnings growth of around 9.4% for the current year.
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