Nucor Corporation announced is forming a 50/50 joint venture with JFE Steel Corporation of Japan to build and operate a plant in central Mexico to supply that country’s automotive market. The plant is expected to have a cost of $270 million and a capacity of 400,000 tons per year of galvanized sheet steel.
“JFE Steel is a natural partner for us. They are a premier supplier of high-quality products to the automotive industry and share our focus on long-term growth,” said John Ferriola, chairman, chief executive officer and president of Nucor.
Automotive production in Mexico is projected to increase from 3.4 million vehicles to 5.3 million by 2020. The joint venture positions Nucor with improved geographic reach and expanded product offering to address this roughly 50 percent growth in automotive demand and builds on JFE’s commitment to serve the NAFTA market. Nucor and JFE will each supply an equal amount of substrate to be further processed at the new facility.
The companies are currently working to secure required conditions to move to completion, including but not limited to regulatory approvals. Operations are expected to begin in the second half of 2019.
JFE Steel Corporation is one of the world’s leading integrated steel producers. The company operates several steel mills in Japan, as well as technical research centers dedicated to the development and application of the most advanced steelmaking technologies in the world. JFE has established business partnerships with many leading companies in order to expand its presence in markets around the world.
Published in the August 2016 Edition of American Recycler News