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JFE Steel Corporation

California Steel Industries to Build Galvanizing Line

JFE Steel Corporation announced today that California Steel Industries, Inc. (CSI) has decided to build a new No. 3 Continuous Galvanizing Line (CGL) at its mill in Fontana, California. The new galvanizing line will serve construction end markets in the western United States and is expected to have an annual capacity of 400,000 tons. With this third line, CSI will have total hot dip galvanizing capacity of 1.2M tons per year. The investment is expected to cost approximately $370 million and take 30 months to construct following regulatory approvals. Importantly, the new investment is not expected to require additional capital infusions from either of CSI’s shareholders.

JFE Steel has invested in CSI since 1984 and Nucor Corporation became a new joint venture partner in 2022. JFE Steel has deepened our partnership with Nucor in various fields, including the joint establishment of NUCOR-JFE STEEL MEXICO in 2016.

Demand for construction materials in the Western United States remains strong, CSI will respond to the growing demand for high-quality, high-value-added products. With a strong partnership with Nucor, JFE steel will continue to strive for stable supply and expansion through the expansion of CSI’s business.


Overview of CSI

Name : California Steel Industries, Inc.
Establishment : 1984
Location : Fontana, California
President and CEO : Zach Moon
Capital : USD 40 million
Revenue : USD 2,073 million (2021)
Ownership share : Nucor Corporation (51%), JFE Steel Corporation (49%)
Business : Production and sales of steel products
Facilities : Hot-rolling mill (2 million st)
Cold-rolling mill (1.2 million st)
2 galvanizing lines (450,000 st and 325,000 st)
No. 2 ERW steel pipe mill (400,000 st)

Overview of No.3 CGL

Production capacity : 400,000 tons
Production start : 2025
Construction cost : Approximately USD 370 million

About JFE Steel Corporation

JFE Steel Corporation, one of the world’s leading integrated steel producers, was established through the consolidation of NKK Corporation and Kawasaki Steel Corporation in 2003. The company operates several steelworks in Japan and numerous branch offices and affiliates throughout the world. JFE Steel leverages world-class technologies and know-how to produce a wide range of products based on its “Only One, Number One” strategy of focusing on unique and best-in-class products. The company reported consolidated sales of 2,255 billion yen and consolidated crude steel output of 23.96 million tons in the fiscal year ended March 2021.

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