Automaker KIA Motors expects to consume about 80,000 mt of CRC at its Pesqueria plant in the state of Nuevo Leon by 2018, according to a Mexico’s government document made available this week.
KIA Motors expects to produce some 110,000 units in 2016, following the plant’s start up in mid-May, as previously reported by SteelOrbis. The first model to be produced in 2016 at the recently inaugurated plant will be 100,000 units of the KIA Forte.
According to a Mexican government resolution, which is reviewing a CRC quota import deal signed between POSCO and Hyundai Hysco, KIA Motors should need 10,000 mt of CRC of automotive quality in 2016, 30,000 mt in 2017 and 40,000 mt in 2018.
According to the document, Ternium is expected to become a provider of steel products, including CRC, for KIA Motors in Mexico, however, the Mexican steelmaker can’t provide the product within the specifications provided by Hyundai Steel México, one of the Hyundai Motor Group companies.
KIA Motors could use Ternium’s CRC, since there have been on-going negotiations with Ternium, so the Mexican steelmaker could provide growing volumes of CRC between 2016 and 2018. However, KIA Motors would still need then to test the material for quality purposes.
According to the document, Ternium isn’t producing CRC of certain sizes, particularly High Strength Low Alloy Steel (HSLAS) below 45kg, 1 ton or above 60kg or Pickled & Oil (P&O) below 2 tons.