Nippon Steel Corp., Sumitomo Pipe & Tube Co., Sumitomo Corp. and Metal One Corp. announced on Aug. 6 the formation of a joint-venture company in Mexico to build a manufacturing and sales base for automotive steel pipes and tubes.
Nippon Steel, Sumitomo Pipe & Tube, Sumitomo and Metal One have long discussed entry into the Mexican market to help meet demand for automotive steel pipes/tubes in this country. Recently, they agreed to jointly establish a corporation in Mexico and begin the construction of a plant in Silao, in the state of Guanajuato.
The joint-venture company is scheduled to begin production in June 2013 and will supply products to Japanese, North American and European automakers and auto parts manufacturers in Mexico.
The company name will be Nippon Steel Pipe Mexico, S.A. DE C.V. It will have start-up capital of about $24 million (1.88 billion yen) and have about 200 employees.
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