JFE Steel Corporation
JFE Steel, Nucor to Set Up Joint Venture Producing Auto Steel Sheet in Mexico
Tokyo --- JFE Steel Corporation announced today that it has agreed with Nucor Corporation, the largest steelmaker in the United States, to establish a joint venture in Mexico to manufacture and sell steel sheet for automobiles. The joint venture, named NUCOR-JFE STEEL MEXICO, will build a continuous galvanizing line in central Mexico that will start production in 2019.
The countries covered by the North American Free Trade Agreement (NAFTA) constitute the world’s second largest auto market. As one of the NAFTA countries, Mexico accommodates the plants of automakers from many countries, highlighting its attractiveness as a manufacturing base for the supply of cars to the United States and other parts of the world. Demand for high quality auto steel sheet is forecast to remain stable in the NAFTA region. JFE Steel has been seeking a manufacturing base in the region, the largest overseas market for Japanese automakers, and Nucor has been striving to expand its business into the supply of high-grade steel for automobiles.
Nucor has an established business base in the NAFTA region and expertise in the efficient running of steel plants, while JFE Steel has the technology to produce high quality auto steel sheet. This collaboration between the two firms is expected to meet the region’s demand for high quality steel sheet for automobiles. The two firms aim to provide equal amounts of substrate for processing by the joint venture.
Profile of the joint venture
|Name:||NUCOR-JFE STEEL MEXICO|
|Ownership:||JFE Steel 50%, Nucor 50%|
|Product:||Galvanized steel sheet for automobiles|
|Capacity:||Approximately 400,000 tons per year|
|Construction cost:||Approximately USD 270 million|
|Headquarters:||Charlotte, North Carolina, United States|
|CEO:||John James Ferriola|
|Products:||Sheet, Bar, Structural, and Plate|
|Crude steel output:||19.6 million tons per year (2015)|
|Net revenue:||USD 16,439 million|
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