Driving value to auto through investments, products and solutions, and co-engineering

01.22.2019

“As automakers continue to work toward lightweighting objectives, steel has held strong as the primary material in vehicles of today. Steel accounts for approximately 65 percent of the vehicle, compared to 68 percent in 2000 and 75 percent in 1990,” said Peter Leblanc, chief marketing officer for ArcelorMittal. “And that’s due to the innovation of steel and the evolution of our approach to deliver value to our customers.”

ArcelorMittal has four key approaches to delivering value to customers: investing in operations and research efforts; delivering cutting edge steel products; implementing game-changing co-engineering efforts; and creating unique yet adaptable steel solutions.

ArcelorMittal offers value by investing in operations and research efforts.

ArcelorMittal boasts some of the most advanced automotive-focused operations in the world. ArcelorMittal operates 26 facilities in North America alone that serve the automotive market.

In the last five years, ArcelorMittal spent nearly $2.5 billion on North America operations and Global R&D efforts in support of automotive. These investments help the company maintain its position as a market leader and deliver steel products and solutions. One major investment was the 2014 acquisition of AM/NS Calvert, a joint venture with Nippon Steel & Sumitomo Metals Corporation. An additional $1 billion was spent on operational improvements and R&D since 2014. More than one-third of that occurred in the last two years.

A sampling of recent capital investments in North America includes:

• Burns Harbor - installation of walking beam furnaces at the 80” hot strip mill to support the delivery of quality substrate for automotive customers
• Cleveland - upgraded gas jet cooling technology at its hot dip galvanizing line to enable production of new steels with increased bendability and strength
• Indiana Harbor - installation of a new tension leveler, quench system and strip transport control system at its No. 3 continuous annealing line to ensure consistent shape control
• Dofasco - hot strip mill modernization project to improve metallurgical capabilities and overhaul of No. 6 galvanizing line to produce heavy gauge advanced high strength steels (AHSS)
• AM/NS Calvert - significant investment in its continuous coating and galvanizing lines to allow for the evolution of 3rd generation advanced high strength steels (AHSS) and patented press hardenable steels, Usibor® and Ductibor®

New quench system at ArcelorMittal Indiana Harbor No. 3 continuous annealing line

Aside from its operational prowess, ArcelorMittal operates 11 major Global R&D centers in various regions around the world. Seven focus on automotive applications and processes including two in North America - East Chicago, Indiana and Hamilton, Ontario. 

“R&D activities help us to realize ArcelorMittal’s ambitions in technological innovation. They support our sustainability goals, and they ensure our continued growth and relevance,” said Bala Krishnan, director of automotive product applications, ArcelorMittal. “Our mission is to develop products that create value for customers and improve our competitiveness."

ArcelorMittal delivers value by launching new steel products.

ArcelorMittal’s North American operations contribute significantly to the company's global product and solutions portfolio. In the last two years, ArcelorMittal launched more than a dozen advanced and 3rd generation steel grades for auto in North America. These products include:

• HR 780 and HR 780 HHE (high hole expansion), high-strength hot-rolled grades that offer good stretch flangeability for frames, control arms, chassis and chassis parts
• CR 980HF and CR 1180HF, cold-rolled Gen 3 steels for upper body structural reinforcements and cross members
• GI and GA 980HF, Gen 3 galvanized and galvannealed steels used for cross members and underbody structure and front and rear energy absorption applications
• Ductibor® 1000 and Usibor® 2000, the next evolution of ArcelorMittal’s press hardenable steel family, particularly of value in tailor welded blanks such as b-pillars and door rings
• Ultragal® GI, a coated premium exposed steel used in super glossy body panels

“Beyond the products we’ve recently launched, we expect to announce a steady stream of new products for the automotive industry over the coming years,” said Krishnan. “These new products leapfrog today’s technologies – offering higher strength levels, formability levels, or a combination of the two.”

In fact, investments are being made now to enhance capabilities and product offerings to meet customer demand. These investments will expand steel's strength, improve weldability and include new Martensitic products.

ArcelorMittal drives value through co-engineering.

In 1990, ArcelorMittal was the first steel company to embed a resident engineer within an automotive customer. Today, the company has resident engineers within or near design centers of almost every major automaker. Co-engineering allows for direct involvement in projects several years before they launch.

Co-engineering on specific parts or platforms deliver industry-first, win-win solutions. A recent co-engineering marvel is the world’s first outer and inner door ring system in the 2019 Acura RDX. The door ring system balances strength and performance. It also removes weight from the vehicle.

World's first inner and outer door ring system (shown in red) on the 2019 Acura RDX

The innovation enhances vehicle performance and supports Honda's safety objectives. The door ring solution helped the RDX earn a five-star rating for the narrow offset crash test. It also enabled the application of a fleetwide panoramic moonroof and supported Honda’s aggressive lightweighting goals. Honda increased its use of ultra high-strength steels in the RDX by more than 50 percent, contributing to exceptional weight savings attributed to AHSS.

ArcelorMittal delivers value through S-in motion®.

S-in motion® steel solutions help to make vehicles lighter, safer and more environmentally friendly. The program includes solutions for key vehicle parts including the front, side and rear body structure, as well as closures, chassis parts and seats. Launched in 2010 for medium-sized passenger cars, the program continues to expand to include other types of vehicles and vehicle parts. Today, S-in motion solutions are available for pick-up trucks, mid-size sedans, SUVs and hybrid and electric vehicles.

The original S-in motion solution for C-segment vehicles provided savings up to 17 kgs or 19% of a typical C-segment vehicle's body-in-white and chassis weight.

“ArcelorMittal recently finalized two S-in motion® projects dedicated to plug-in hybrid vehicles and battery packs for battery electric vehicles. These projects are being rolled out through collaborations with automotive partners and tier one suppliers,” confirmed Jean-Luc Thirion, general manager, Global R&D. “On top of these projects, ArcelorMittal is developing dedicated holistic solutions for battery electric vehicles that will deploy in the second half of 2019.”

Today, more than a dozen unique automotive steel solutions now live under the S-in motion® program. These solutions help achieve the weight reduction automakers need, at a lower cost and with less environmental impact than competing materials. These solutions do not compromise safety, style or performance. And, they can be implemented without the need for major capital investment or new manufacturing infrastructure by the OEM.

“Steel is and always will be the complete package to help automakers achieve the fuel efficiency targets set before them,” said Brad Davey, chief executive officer, ArcelorMittal North America. “It’s the most affordable solution for our customers and the consumer, and it’s the best choice for the environment.”

“ArcelorMittal is in the best position to continue to deliver value to automakers and help them create vehicles that lead to a more sustainable future,” he said.

<< Back to Announcements