Although SteelOrbis reported earlier this week that Japanese steelmaker JFE Holdings still plans to build an automotive steel mill in Mexico despite the possibility of the US enacting a 20 percent tariff against all Mexican imports, JFE’s partner in the project, US-based Nucor, does not appear to be on the same page.
During Nucor’s fourth quarter conference call, Nucor CEO John Ferriola said the Trump administration's trade policy could change those plans. Ferriola told analysts that Nucor could have to “rethink” building the $270 million galvanized sheet mill, which is intended to supply the Mexican and US auto industries.
“There’s a lot of things going on in Washington so the situation is in flux, and we all need to be careful in making decision on where to move forward with a very good project,” Ferriola said. “We still expect it to be in Mexico, but we’ll watch that.”
Ferriola indicated a continued willingness to work with JFE, wherever the mill ends up. “When and if something changes and we have some definitive direction that says that’s not the place to put it, we do have options and we will work and will follow with one of those options,” he said.
Construction on the mill is scheduled to begin this summer.