Mexico steel plant enters production

Thursday, October 13, 2016

An automotive steel wire plant began production in Mexico, according to JV partner Kobe Steel.

The Kobelco CH Wire Mexicana (KCHM) plant, in the city of Silao, Guanajuato state, will produce cold heading (CH) quality steel wire, used to make automotive fasteners – such as nuts and bolts – and cold-forged products for carmakers.

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KCHM is a JV between Japan's Shinsho Corporation (40%), Metal One (25%), Kobe Steel, Grupo Simec and Osaka Seiko (10% each) and O&K American (5%).

The plant, plans for which were announced in 2014, has a capacity of 40,000t/y. Construction was expected to require US$41mn of investment, with KCHM capitalized at US$11.9mn, according to the 2014 announcement.

Mexico's steelmakers are seeking to increase participation in domestic sectors, including the growing automotive industry, amid a tough international market.