Nucor-JFE Steel Mexico, a prominent steel company in Mexico, has made a significant stride by increasing its production capacity of galvanized sheet from 20% to 30%, according to insiders familiar with the production process. This joint venture between Nucor Corporation from the United States and JFE Steel Corporation from Japan is poised for higher output in the upcoming months.
The state-of-the-art plant, situated in Silao, Guanajuato, commenced operations in March 2020, coinciding with the outbreak of the Covid-19 pandemic, which brought the Mexican and global economies to a standstill. Despite these challenging circumstances, the company has invested a substantial sum of $270 million in the facility, which boasts an impressive annual capacity of 400,000 metric tons.
Nucor-JFE Steel Mexico primarily caters to the automotive industry, supplying galvanized sheet for various applications. However, due to the pandemic's impact on the automotive sector, the company has diversified its customer base and served industries such as construction. In the first four months of this year, the automotive industry witnessed a 6.7% decline in production compared to pre-pandemic levels, amounting to 1.22 million units.
As a joint venture between two industry-leading companies, Nucor-JFE Steel Mexico benefits from the expertise and technological advancements brought by Nucor Corporation and JFE Steel Corporation. This collaboration allows for the exchange of knowledge and best practices, ensuring the implementation of cutting-edge manufacturing processes and the maintenance of superior product standards.