CHARLOTTE, N.C., June 9, 2016 /PRNewswire/ -- Nucor
Corporation (NYSE: NUE) announced today that it is forming a
50-50 joint venture with JFE Steel Corporation of Japan to build and operate a plant in central
Mexico to supply that country's
automotive market. The plant is expected to have a cost of
$270 million and a capacity of
400,000 tons per year of galvanized sheet steel.
"JFE Steel is a natural partner for us. They are a premier
supplier of high-quality products to the automotive industry and
share our focus on long-term growth," said John Ferriola, Chairman, CEO and President of
Nucor. "This joint venture builds on our efforts to increase our
production of differentiated and value-added products. Continued
growth in Mexico's automotive
production presents an opportunity for Nucor to increase our sales
to this important market."
Automotive production in Mexico
is projected to increase from 3.4 million vehicles to 5.3 million
by 2020. The joint venture positions Nucor with improved geographic
reach and expanded product offering to address this roughly 50%
growth in automotive demand and builds on JFE's commitment to serve
the NAFTA market. Nucor and JFE will each supply an equal amount of
substrate to be further processed at the new facility.
The companies are currently working to secure required
conditions to move to completion, including but not limited to
regulatory approvals. Operations are expected to begin in the
second half of 2019.
JFE Steel Corporation is one of the world's leading integrated
steel producers. The company operates several steel mills in
Japan, as well as technical
research centers dedicated to the development and application of
the most advanced steelmaking technologies in the world. JFE has
established business partnerships with many leading companies in
order to expand its presence in markets around the world.
Nucor and its affiliates are manufacturers of steel products,
with operating facilities primarily in the U.S. and Canada.
Products produced include: carbon and alloy steel -- in bars,
beams, sheet and plate; steel piling; steel joists and joist
girders; steel deck; fabricated concrete reinforcing steel; cold
finished steel; steel fasteners; metal building systems; steel
grating; and wire and wire mesh. Nucor, through The David J.
Joseph Company, also brokers ferrous and nonferrous metals, pig
iron and HBI/DRI; supplies ferro-alloys; and processes ferrous and
nonferrous scrap. Nucor is North
America's largest recycler.
Certain statements contained in this news release are
"forward-looking statements" that involve risks and uncertainties.
The words "believe," "expect," "project," "will," "should," "could"
and similar expressions are intended to identify those
forward-looking statements. Factors that might cause the Company's
actual results to differ materially from those anticipated in
forward-looking statements are discussed in Nucor's regulatory
filings with the Securities and Exchange Commission, including
those in Nucor's fiscal 2015 Annual Report on Form 10-K, Item 1A.
Risk Factors. The forward-looking statements contained in this news
release speak only as of this date, and Nucor does not assume any
obligation to update them.
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SOURCE Nucor Corporation