9/9/2014 3:01:00 AM
HEADLINES
CH Wire Rod Venture Eyes Mexican Operations
Steelmakers from Japan, Mexico and the U.S. agreed to establish a joint venture in Mexico to produce steel wire of cold heading (CH) quality for automotive fasteners and cold-forged products, Steel Orbis reports.
Japanese firms include Kobe Steel, Shinsho Corp., Metal One Corp. and Osaka Seiko Ltd. Other companies include Mexican firms Grupo Simec and S.A.B. de C.V., and U.S.-based O&K American Corp.
“The new joint venture called Kobelco CH Wire Mexicana (KCHM) will process steel wire rod into CH steel wire for sale to automotive parts manufacturers in Mexico,” according to Steel Orbis.
Total investment will top $41 million to establish operations with annual production capacity of 40,000 mt. The facility is slated to open in early 2015.
The move comes amid a doubling of Mexican auto production to 2.93 million units in 2013, which has prompted Japanese parts manufacturers to establish operations in Mexico, Steel Orbis reports.
“By producing in an area of increasing demand, KCHM will be able to quickly supply CH steel wire of outstanding surface quality and contribute to expanding the business of its customers.”
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