Nucor's Mexico hot-dip galvanised sheet steel facility begins production

Nucor-JFE Steel Mexico has begun operating its continuous galvanising line, which will produce hot-dip galvanised sheet steel for the automotive market.

The production facility, which has an annual production capacity of 400,000 tonnes, is located in Silao, Guanajuato, in central Mexico. It can produce sheet thickness from 0.4 mm to 2.6 mm and widths of 800 mm to 1,850 mm.

Nucor-JFE has begun trial production and will move towards full-scale sales and production once customer approvals have been obtained.

"We are excited to expand our presence in Mexico and to use our local sales network to increase our sales into this important automotive market," said Leon Topalian, President and CEO of Nucor. "We are proud to partner with JFE Steel Corporation of Japan and to benefit from their experience as a premier supplier of high-quality products to the automotive industry."

Nucor-JFE is well-positioned to serve the large Mexican automotive market, with production in the region expected to continue to grow. The new United States-Mexico-Canada agreement (USMCA) increases the amount of North American content required in cars and trucks to avoid tariffs imposed by the US. Nucor and JFE will each supply an equal amount of substrate to be processed at the new facility.

Nucor and its affiliates are manufacturers of steel and steel products, with operating facilities in the US, Mexico and Canada.

Last month, Nucor Corporation announced consolidated net earnings of $1.27 billion compared to $2.36 billion in 2018. The group – reportedly America’s largest steel producer – saw Q4 2019 net earnings reach $107.8 million, compared with $646.8 million in Q4 2018