Nucor Corp., Charlotte, N.C., announces a 50-50 joint venture with JFE Steel Corp. of Japan to build and operate a plant that will produce 400,000 tons per year of galvanized sheet steel in central Mexico. The plant is expected to have a cost of $270 million, and will supply the Mexican automotive market.
“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,” says 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 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. 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.
