Nucor-JFE Steel Mexico, located in Silao, Mexico, has begun operating its continuous galvanizing line, which will produce hot-dip galvanized sheet steel for the automotive market. The facility has a production capacity of 400,000 tons annually. It can produce sheet thicknesses of 0.4-2.6 mm and widths of 800-1,850 mm. Nucor-JFE has started trial production and will move toward full-scale sales and production once customer approvals have been obtained.
Nucor-JFE is positioned to serve the large number of automakers that have built facilities in central Mexico. Nucor and JFE Steel of Japan will each supply an equal amount of substrate to be processed at the facility.
Automotive production in Mexico is expected to continue to grow and the new United States-Mexico-Canada Agreement (USMCA) increases the amount of North American content required in cars and trucks to avoid tariffs imposed by the U.S.