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
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