Heat Treat Industry News
June 08, 2010
Delaco Steel forms joint venture with steelmaker ArcelorMittal
Dearborn-based Delaco Steel Corp. has formed a joint venture with a subsidiary of Luxemberg-based ArcelorMittal S.A., the world's largest steelmaker, to operate two laser welding plants that primarily serve the automotive industry.
The joint venture will be called Delaco AMTB and will be a Minority Business Enterprise, according to a statement announcing the deal today. The laser welding plants are in Dearborn and another in Tonawanda, N.Y. Delaco Steel is part of the Dearborn-based Diez Group, owned by Gerald Diez.
ArcelorMittal's subsidiary ArcelorMittal Tailored Blanks Americas Corp. will own 49 percent of Delaco AMTB and Delaco will retain the other 51 percent.
Terms of the deal were not disclosed.
The deal brings ArcelorMittal's laser welding technology and expertise to compliment Delaco’s blanking experience, Delaco President Don Crawford said. Crawford said the hope is that the deal will spur additional contracts and employment at the plants in Dearborn and New York, which currently employ about 25.
“With ArcelorMittal's background and business, we should be able to get additional work for these lines here,” he said.
Delaco Steel, which generates about $500 million in annual revenue, is the largest unit of the Diez Group.
By Ryan Beene
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