Monday 20 May 2013
Tokyo.- Nippon Steel, the Japanese steel company has incorporated a joint-venture with other Japanese companies to establish in 2013 a components plant for the automotive industry in Guanajuato, a state in central Mexico, Nikkei newspaper informed. The project, which total investment is expected to be around US$39.6 million, focuses on establishing in June 2013 a factory in Silao, where 200 people will be employed and which will have the capacity to produce around 24,000 tons of steel pieces per year.
The plant will supply the growing sector of vehicles assemblers in Mexico, where significant investments have been recently received, made by Japanese companies such as Nissan Motor or Honda Motor, which production volume will be increased this year.
The pieces will also be supplied to other manufacturers with presence in Mexico, such as General Motors that has its own plant in Silao, in addition to Ford Motor and Volkswagen Group.
Nippon Steel will hold 55% of the new company’s shares, the other corporations in this joint venture are Sumitomo Group and Sumitomo Metals, as well as Metal One, a Mitsubishi subsidiary, which announced last July they will open a steel sheets plant in Atitalaquia, Hidalgo (in central Mexico as well).
The plant in Guanajuato will manufacture steel pipes with electric resistance welding, that will be mainly used to manufacture tailpipes, fuel filler necks, steering axles and motorcycle yokes.
Nippon Steel, fourth steel producer in the world as far as volume is concerned, is planning to ship raw materials from Japan and the United Stats.
This Japanese company has similar plants in China, Thailand, India and Indonesia, and only in Asia it has capacity to produce around 180,000 tons of these steel pipes for the automotive industry.
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