Ternium S.A. and Nippon Steel Corp. 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). Tenigal plans to build a hot-dip galvanizing plant in the vicinity of Monterrey City that will feature state-of-the-art equipment and technology with an annual production capacity of 400,000 metric tons.
The new facility, which will require a total investment of approximately $350 million, 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. Ternium will hold 51% of the interest and Nippon Steel will hold the remaining 49%. Tenigal will serve the demanding requirements of the Mexican automotive industry, including those of the Japanese automakers.
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