Mexico, Jun. 26 (Notimex).- In order to supply the automotive industry, the US company Nucor Corporation and Japan’s JFE Steel Corporation will invest 270 million dollars to build a steel sheet plant in Silao, Guanajuato.
According to the companies, an annual output of 400 thousand tons of galvanized steel sheet is expected, creating 300 direct and indirect jobs. The plant will start operations during the second half of 2019.
Nucor President John Ferriola noted that the automotive market in Mexico has experienced a tremendous growth, and is expected to continue expanding.
He explained that it is estimated that, by the year 2020, 40 percent new vehicle launchings will come out of the Bajio region.
This investment is possible thanks to an agreement in June 2016 between the two steel companies, each one of them with an equal investment. These firms seek to take advantage of the opportunities offered by Mexico as the largest producer of motor vehicles in Latin America and the seventh in the world.