In May 2007, ThyssenKrupp AG of Germany initiated the construction of a steel mill at a cost of US$3.7 billion in Alabama. Initially, the company had planned an investment of US$2.9 billion. But later on, ThyssenKrupp decided to increase its steel and stainless steel capacity, and installed additional equipment to support diversification of its product portfolio, which increased the project cost. The plant is being jointly built by ThyssenKrupp Steel AG and ThyssenKrupp Stainless AG (Both subsidiaries of ThyssenKrupp AG). The new plant is a part of the company’s strategy to attain profitable growth in Europe and North America.
The plant will be built on a 150 acre land, and will produce steel slabs, carbon steel and rolled stainless steel for the auto, appliance and construction industries. The new plant will obtain crude steel from another plant being established in Brazil, which will become operational in 2009. The Alabama plant includes multiple mills for producing various types of steel and a melt shop for producing 1 million metric tons of slabs annually.
The plant connects to the North American Free Trade Agreement area, and shall take advantage of the same for inflow and outflow of goods and raw material. The company further plans to expand its operations in the free trade area.
|Project Name||ThyssenKrupp AG Steel Mill in Alabama|
|Estimated Investment||US$ 3.7 billion|
|Key Players||ThyssenKrupp Steel AG, ThyssenKrupp Stainless AG|