Steel Markets
Automotive Blanking Joint Venture Starting Up in Alabama
Written by Tim Triplett
August 10, 2021
Three companies with more than a century of experience in the U.S. steel and auto industries are teaming in a joint venture called Madison Metal Processing that will operate a new, $40 million factory near Huntsville, Ala. The companies collaborating in the venture are Toyota Tsusho America Inc., Southern Mobility Products and SteelSummit Holdings, a subsidiary of Sumitomo Corp. of Americas.
Beginning later this year, Madison Metal Processing (MPP) will supply steel blanks for up to 300,000 vehicles produced at the Mazda Toyota Manufacturing auto assembly plant in Huntsville. MMP will also provide steel products to other automotive suppliers.
Full production at the company’s 110,000-square-foot Alabama facility is planned for mid-2022, with trial production already under way.
As a full-service steel processing service center, MMP will specialize in blanking and warehousing steel products including hot rolled steel, cold rolled steel, and exposed and coated steel products. The company estimates it will process as much as 5,000 tons of steel per month onsite at the new Huntsville facility.
The collaboration of the three companies brings considerable expertise to the region, with SteelSummit’s 36-year history in the U.S. steel industry and Toyota Tsusho’s six decades of operation in North America. Todd Rollins, CEO and President of SteelSummit Holdings, said his company is excited about the venture in Alabama.
“MMP’s new state-of-the-art blanking operation provides us with the opportunity to support Mazda and Toyota’s new auto assembly operation and expands SteelSummit’s existing presence in North Alabama,” he said.
The $2.3 billion Mazda Toyota Manufacturing facility is scheduled to begin mass production this year, with Toyota assembling its new Corolla Cross sport utility and Mazda producing an SUV that has yet to be announced.
“The Mazda Toyota Manufacturing plant represents a game-changing project for the North Alabama region, and its vast economic impact continues to magnify when world-class suppliers include the area in their growth plans,” said Greg Canfield, secretary of the Alabama Department of Commerce. “With operations like Madison Metal Processing moving in, Huntsville is solidifying its status as the auto industry’s next dynamic production center.”
(Editor’s note: Information for this article comes from MadeinAlabama.com, a website of the Alabama Department of Commerce).
Tim Triplett
Read more from Tim TriplettLatest in Steel Markets
CRU: Sheet import demand softens as domestic price gains have slowed
US domestic sheet price gains have begun to slow as previously pulled-forward demand has led to a decline in orders.
CMC looks beyond Arizona micro-mill woes to long-term viability of construction mart
Despite the economic and geopolitical upheaval of the last five years, CMC President and CEO Peter Matt points out that the construction market has been an essential element of the way forward.
US importers face stricter rules under revamped S232 tariffs
“CBP expects full compliance from the trade community for accurate reporting and payment of the additional duties. CBP will take enforcement action on non-compliance," the agency said in a March 7 bulletin.
Steel exports rebound in January
US steel exports recovered to a five-month high in January after having fallen to a two-year low in December. This growth follows four consecutive months of declining exports.
Construction spending drops marginally in January
Construction spending edged down slightly in January, slipping for the first time in four months. The US Census Bureau estimated spending at a seasonally adjusted annual rate of $2,196 billion in January, down 0.2% from December’s downward revised rate. The January figure is 3.3% higher than a year ago. January’s result, despite the slight erosion, […]