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Nippon Steel, Ternium to Establish HDG Joint Venture in Mexico
10/06/2010 - Nippon Steel and Ternium sign a definitive agreement to form a joint venture in Mexico for the manufacture and sale of hot-dip galvanized and galvannealed steel sheets to serve the Mexican automobile market. Ternium will hold a 51% interest in the new venture, with Nippon Steel holding the remaining 49%.
Nippon Steel Corp. and Ternium SA have signed definitive agreements to form a joint venture in Mexico for the manufacture and sale of hot-dip galvanized and galvannealed steel sheets to serve the Mexican automobile market.
The new joint venture will operate under the name of Tenigal SRL de CV (Tenigal), with Ternium holding 51% of the interest and Nippon Steel holding the remaining 49%.
Tenigal is expected to build a hot-dip galvanizing plant that will feature state-of-the-art equipment and technology equivalent to what is now in operation at Nippon Steel’s steelworks in Japan. The plant, which will be built in the vicinity of Monterrey City, will have an annual production capacity of 400,000 tonnes. Constructed at an estimated total investment of approximately US$300 to $350 million, the new facility is expected to commence production of high-grade and high-quality galvanized and galvannealed automotive steel sheets, including outer-panel and high-strength qualities, in 2013.
Tenigal is expected to serve the demanding requirements of the Mexican automotive industry, including those of the Japanese car makers. The Mexican automobile market represents a growing and important market for both Nippon Steel and Ternium, and continued growth is anticipated in the future.
Nippon Steel, one of the world’s leading steelmakers, operates consolidated annual crude steel production of 40 million tonnes. The company’s technical expertise and deployment of global and domestic strategic alliances allows it to hold an unchallenged position in the global market of high-end steel products.
Ternium, a leading Latin American steel company, manufactures and processes 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. With principal operations in Mexico and Argentina, Ternium serves markets in the Americas through its integrated manufacturing system and extensive distribution network. The Company has an annual production capacity of approximately ten million tons of finished steel products.
