Japanese steelmaker JFE and American heavy metal giant Nucor are setting up a joint venture to produce automotive steel sheet in Mexico. The plan is to manufacture 400kt of sheet from 2019, according to a report by Business Korea.
Mexico is already home to South Korean steelmaker POSCO, which set up a steel processing centre in 2007, and continuous galvanising lines (CGLs) in 2009. In fact, the company operates two CGL lines and five processing centres plus a technical service centre.
Mexico is a hotbed of automotive steel manufacturing. Hyundai Steel completes construction of its steel service centre this month (April) while Nippon Steel & Sumitomo Metal, Japan’s largest steelmaker, runs CGLs producing 400kt/yr since 2013, according to Business Korea.
An estimated 80% of all cars produced in Mexico are exported and 70% of that figure goes to the North American market.
Most global automotive players have manufacturing facilities in Mexico, according to the Mexico Auto Industry Association.