WASHINGTON, DC – U.S. Sen. Sherrod Brown (D-OH) today applauded the announcement that U.S. Steel and Kobe Steel plan to invest $400 million in a new joint venture in Leipsic. The investment will fund a new continuous annealing line to produce high-strength, low-weight steel for auto parts at the PRO-TEC Coating Company, a joint venture of the two companies. New federal fuel efficiency standards (known as CAFE standards) have driven automakers’ demand for high-strength, low-weight steel.
“American automakers are back, with the demand for fuel-efficient cars higher than ever. The decision to invest in our auto industry was a tough decision, but today proves—once again—that it was the right one,” Brown said. “This new $400 million investment at PRO-TEC will mean nearly 600 new jobs for northwest Ohio. Ohio workers know better than any others how to make things, especially when it comes to steel and auto parts. Stronger federal fuel efficiency standards were intended to help our country meet the energy challenges of the future, but now they’ll also help put hundreds of Ohioans back to work doing what they do best—manufacturing.”
According to U.S. Steel, the new continuous annealing line will have an annual production capacity of 500,000 tons. Completion of the new line will take approximately two years.