Nucor, JFE Steel enter joint venture in Mexico
The plant is expected to have a cost of $270 million and a capacity of 400,000 tons per year of galvanized sheet steel.
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 in automotive demand and builds on JFE's commitment to serve the NAFTA market.
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. ■