Japanese steelmaker Nippon Steel Corporation has announced that it has established a joint venture company in Silao in the Mexican state of Guanajuato to build a manufacturing and sales base for automotive steel pipes/tubes with other Japan-based steelmakers Sumitomo Pipe & Tube Co., Ltd, Sumitomo Corporation and Metal One Corporation.
The joint venture company to be called Nippon Steel Pipe México, S.A. de C.V. is scheduled to begin production in June 2013 and will supply products to Japanese, North American and European automakers and auto parts manufacturers in Mexico. The automotive steel pipes plant to be established with an investment of approximately $39 million will have a monthly output capacity of 2,000 mt.
The joint venture aims to respond to the demand for such products in the Mexican market, which is expected to grow significantly in the future, leading to a rapid expansion of demand for middle- to high-grade steel pipes/tubes in which Nippon Steel and Sumitomo Pipe & Tube have competitive strength.