Nucor and JFE steel’s joint venture, Nucor-JFE Steel Mexico (Nucor-JFE), has started producing hot dipped galvanized sheet at its steel facility.
The Mexican facility, which has an annual production capacity of 400,000mt will make steel sheets ranging from 0.4-2.6mm in thickness and 800-1,850mm in width. In a statement, Nucor said that the facility would begin full-scale sales and production after obtaining customer approvals for the samples produced during its trial production run.
The facility, according to Nucor, will cater to the needs of carmakers and auto parts suppliers who have constructed their manufacturing hubs in Central Mexico. The production announcement comes close on the heels of the US-Mexico-Canada agreement (UMSCA) which requires automakers in the region to use North American parts and products in its cars produced in American facilities.
The American steelmaker is looking to expand its presence in the Mexican automotive market through this JV and plans to use its local sales network to increase sales from the JV in the region, according to Leon Topalian, president and chief executive officer, Nucor.
Nucor has manufacturing facilities across US, Canada, and Mexico and produces various steel products like beams, sheets, and plates. The company, which is also considered North America’s largest recyclers brokers ferrous and non-ferrous metals, pig iron and other metals.