Steel Mills
Nucor and JFE Holdings Announce Joint Venture in Mexico
Written by Sandy Williams
June 9, 2016
Nucor Corp. and JFE Holdings of Japan will enter a joint venture to build and operate a steel processing plant in central Mexico to supply the country’s automotive market. The 50-50 venture will cost $270 million to construct and have a capacity of 400,000 tons per year of galvanized sheet steel.
The substrate for processing by the facility will be equally supplied by Nucor and JFE. The companies are working to meet final required approvals and expect operations to begin in the second half of 2019. The new facility will be called Nucor-JFE Steel Mexico.
“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, CEO and President of Nucor. “This joint venture builds on our efforts to increase our production of differentiated and value-added products. Continued growth in Mexico’s automotive production presents an opportunity for Nucor to increase our sales to this important market.”
Automotive production is growing rapidly in Mexico with several U.S. plants relocating manufacturing facilities there. It is estimated that automotive production in Mexico will increase from 3.4 million vehicles to 5.3 million by 2020.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Report: Biden to decide fate of USS/Nippon deal after split CFIUS decision
Nippon Steel's purchase of U.S. Steel could lead to lower steel output domestically, and that presents “a national security risk," the Washington Post reported.
USS/Nippon deal: Who will have the happiest holidays?
Will Santa bring gifts for the leadership, employees, and shareholders of U.S. Steel and Nippon Steel, and lumps of coal for USW leadership and politicians opposed to the deal?
‘Orderly liquidation’ of AHMSA assets begins
A trustee has formally taken over AHMSA and begun the liquidation process of the bankrupt Mexican steelmaker.
Nippon buying stake in Canadian iron ore project
Nippon Steel and a Japanese trading company have entered an agreement to buy a 49% interest in a Champion Iron ore project in Canada.
USS anticipates Q4 loss on weak demand, BR2 start-up
Amid a challenging pricing and demand environment, and with the ongoing ramp-up of the Big River 2 mill, USS is anticipating a loss for the fourth quarter.