JFE Shoji to open joint venture pipe plant in Mexico

JFE Shoji Trade Corp, the trading arm of Japanese steelmaker JFE Steel, plans to build a steel pipe manufacturing plant in Mexico targeting the local automotive industry.

Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.

The plant will produce cold drawn tube under a joint venture between JFE Shoji, Mexican steel pipe manufacturer Productos Laminados de Monterrey (Prolamsa), and Japanese tube manufacturer Sankin Corp, JFE Shoji said this week.

The project – called A4C-Sankin Precision Tube, S.A.de P.I. – is expected to benefit from the “rapidly increasing” investments by Japanese and Western carmakers in Mexico.

“In the auto-parts industry, demand for higher quality cold drawn steel tube has been increasing, prompting the shift to local purchasing,” JFE Shoji said.

The scheduled date for the establishment of the joint venture is April this year, with Prolamsa set to hold a majority stake in the company.

The plant will be located in the suburbs of Monterrey city, Mexico, near Prolamsa’s main factory, the Japanese company said.

“The company is expected to capture these demands of not only Japanese customers, but also American and European customers as well, with responding to the customers’ requirement, and exercising manufacturing and sales activities on the forefront of the market,” it added.

No information about the timeframe or production capacity of the plant was disclosed, however.

What to read next
Market participants are cautiously optimistic about a rebound in iron ore concentrate premiums, with steelmakers around the world set to ramp-up production in line with an anticipated increase in demand for steel products, Fastmarkets understands
General Motors (GM) is investing $650 million to develop the Thacker Pass mine in Nevada, the largest known source of lithium in the US and the third largest in the world
Electrolysis processes developed by Boston Metal and Electra that eliminate the need for coal in steel production could be key to a net-zero emissions future for the metallics industry, attendees learned at Fastmarkets’ conference on January 17-19 in Dallas
Low supply, strong demand to spur scrap prices higher in Feb, market says
US deep-sea ferrous export prices from the East Coast to Turkey have plateaued, with a Turkish mill purchasing a cargo at prices stable from the last-reported sale
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
Proceed