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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
Production start: 2019
 

Nucor Corporation

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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