Nucor’s partner on the project is Japan’s JFE Steel Corp., which will hold a 50 percent share in the business. Nucor and JFE said the continuous mill, which is targeting the automotive market, will be capable of making 400,000 tons annually.

In a statement, Nucor said Mexican auto production is expected to grow 56 percent to 5.3 million vehicles over the next five years. The mill will give it improved geographic reach and expand its product offerings, it said.

 “Continued growth in Mexico's automotive production presents an opportunity for Nucor to increase our sales to this important market," Nucor chairman and chief executive John Ferriola said in statement. "This joint venture builds on our efforts to increase our production of differentiated and value-added products.”

The joint venture, named Nucor-JFE Steel Mexico, is to begin production in 2019. The mill will process steel made by Nucor and JFE facilities, with each supplying an equal amount of substrate.

JFE Steel said the venture will give it greater access to the NAFTA market, where it has been looking to establish a manufacturing presence. It added that the venture will combine the companies’ respective strengths -- JFE’s automotive steel production technology and Nucor’s expertise in running efficient steel mills.

The joint venture is the second JFE Steel has created in the last two years. In 2015, its trading arm, JFE Shoji Trade Corp., struck an agreement with Mexican tubemaker Prolamsa and Japanese cold-drawn producer Sankin Corp. to build a cold-drawn tube facility outside of Monterrey, Mexico.

The facility, which is being geared for the auto industry as well, is to come on-line later this year.