ArcelorMittal’s
MT
subsidiary, ArcelorMittal Dofasco announced the additional capability for the production of ArcelorMittal’s patented Usibor Press Hardenable Steel for automotive applications.
The investment in the coating addition of No.5 hot-dipped galvanizing line in Hamilton will enable ArcelorMittal Dofasco to be the only Canadian producer of Aluminium Silicon (Alusi) coated Usibor. It is in line with North America developments announced earlier, including a new Electric Arc Furnace (“EAF”) at AM/NS Calvert in the United States and a new hot strip mill in Mexico. The investment further strengthens Arcelor Mittal’s leadership position in the North America automotive market.
The project cost amounted to C$24 million. The first product is expected to come on stream in the second half of 2022. The No.5 line has an expected capacity of 160,000 tons of Alusi coated steel.
Shares of ArcelorMittal have gained 33.6% in the past year compared with the 17% rise of the
industry
.
The company, on its third-quarter earnings call, stated that it has been witnessing improvement in activity levels due to the easing of lockdown measures. However, the demand is below normal and the pace of recovery continues to be uncertain.
The company is also restarting hot-idled capacity as market demand improves. It is maintaining the flexibility to quickly adapt production as the situation evolves. ArcelorMittal is also focusing on cost reduction initiatives to support profitability amid evolving demand. It will increase production as economic activity recovers.
Zacks Rank & Key Picks
ArcelorMittal currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are
Bunge Limited
BG
,
BHP Group
BHP
and
Clearwater Paper Corporation
CLW
.
Bunge has a projected earnings growth rate of 43% for the current year. The company’s shares have gained 13.3% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here
.
BHP has an expected earnings growth rate of 32.4% for the current year. The company’s shares have gained around 20.5% in the past year. It currently flaunts a Zacks Rank #1.
Clearwater has an expected earnings growth rate of 1,960.9% for the current year. The company’s shares have surged 75.4% in the past year. It currently sports a Zacks Rank #1.
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