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Nippon Steel, Ternium Sign MoU to Form Joint Venture in Mexico
05/18/2010 - Nippon Steel and Ternium have signed a memorandum of understanding to form a joint venture that is expected to build a hot-dip galvanizing plant in the vicinity of Monterrey City, and subsequently manufacture and sell high-grade, high-quality galvanized and galvannealed steel sheets.
Nippon Steel and Ternium have signed a memorandum of understanding to form a joint venture that is expected to build a hot-dip galvanizing plant in the vicinity of Monterrey City, and subsequently manufacture and sell high-grade and high-quality galvanized and galvannealed steel sheets, including outer-panel and high-strength qualities.
The plant, with a planned production capacity of about 400,000 tonnes per year, would be primarily intended to respond to customer demand (including that of Japanese car makers) for high-grade automotive steel sheets in Mexico. Nippon says the plant will be equivalent to the state-of-the-art equipment now in operation at its steelworks in Japan.
The joint venture would require an investment of approximately US$350 million over two and a half years.
The two companies will maintain exclusive negotiations toward a binding joint venture agreement, which is subject to final documentation, due diligence, feasibility studies, agreement on other issues, and regulatory and corporate approvals.
Nippon Steel, with its consolidated annual crude steel production of 40 million tonnes, is one of the leading steelmakers in the world.
Ternium is a leading steel company in Latin America, manufacturing and processing a wide range of flat and long steel products for customers active in the construction, home appliances, capital goods, container, food, energy, and automotive industries. The company has an annual production capacity of about 9 million tonnes of finished steel products.
