Armco Chosen as Steel Supplier for GM's Saturn Plant
May. 08, 1987
MIDDLETOWN, Ohio (AP) _ General Motors Corp. on Friday announced Armco Inc.'s Eastern Steel Division had been chosen as sole steel supplier for GM's Saturn auto plant being built in Tennessee.
At GM's directive, no details were released about the amount of steel to be supplied under the contract.
''We will not announce any other details, and we do not plan to in the future. Our business relationships are considered confidential, and we never make any formal announcement to anybody,'' GM spokeswoman Judy Merriott said.
Dan Sack, spokesman for Armco's Eastern Steel Division, said it was too soon to say whether the GM contract would allow Armco to hire more people for the division's steel mills in Middletown and in Ashland, Ky. The two plants now employ 9,600 people.
The $3.5 billion Saturn small-car assembly plant is scheduled to open in 1990 and employ about 3,000 workers. GM projects the plant will produce 240,000 cars a year.
Sack said the steel probably would be mostly of the galvanized, corrosion- resistant type that Armco already supplies to General Motors for other GM vehicles. Armco had about 10 percent of the automotive steel market in 1986.
Armco officials and union leaders from the Middletown and Ashland plants met with Saturn executives Friday to discuss the supply arrangements.
Armco officials said Friday the Saturn supply contract also could eventually provide work for a new steel-processing plant that Armco and the Japanese firm C. Itoh & Co. Ltd. operate in Tipp City, Ohio.