TOKYO, Dec 1 (Reuters) - Japan's Kobe Steel Ltd said on Wednesday it is in the final stage of talks with U.S. Steel Corp to add a $480 million car sheet steel line at their joint venture in Ohio as the U.S. automarket shows signs of recovery.
The investment by Kobe Steel, Japan's fourth-biggest steelmaker, will be the first by a Japanese steelmaker in the U.S. steel sector in nearly 15 years.
Bigger rival Nippon Steel Corp froze a plan to double the automotive sheet capacity at a U.S. joint venture with ArcelorMittal after the Lehman crisis of late 2008 hit the market.
Kobe Steel and U.S. Steel have been discussing boosting the production capacity of lightweight, fuel-efficient automotive sheet steel at their 50-50 joint venture Pro-Tec Coating Co by 50 percent by adding a line with capacity to produce 500,000 tonnes per year.
"The deal could be finalised shortly," a Kobe Steel spokesman told Reuters.
It will cost about 40 billion yen ($478.6 million) to create the new line.
The Nikkei business daily reported on Wednesday that construction of the new line will begin in 2011, with production starting in 2013.
The move is part of a plan by Kobe Steel to raise overseas sales to half of its overall revenues, the Nikkei reported. ($1=83.57 Yen) (Reporting by Yuko Inoue; Editing by Michael Watson)