Nucor and JFE Steel form plate joint venture to supply growing demand in automotive market in Mexico
Nucor Corporation 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.
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% 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.
Nucor and its affiliates are manufacturers of steel products, with operating facilities primarily in the US and Canada. Products produced include: carbon and alloy steel in bars, beams, sheet and plate; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; steel grating; and wire and wire mesh.
Nucor, through The David J. Joseph Company, also brokers ferrous and nonferrous metals, pig iron and HBI/DRI; supplies ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is North America’s largest recycler.