Japan Steel Makers and Dealers Expand Car Related Investment in Mexico

Japanese steel makers and dealers are accelerating business investment in Mexico to secure expanding steel demand for automobiles. Nippon Steel is constructing a hot dipped galvanizing line. Maruichi Steel Tube decided construction of a steel tube plant. Mitsui Corporation and Marubeni-Itochu Steel plan to enlarge coil centers while Sumikin Bussan decided investment for automobile parts business in the country. Metal One, JFE Shoji and Hanwa Corporation examine new and additional businesses in Mexico.

Automobile production is strongly increasing in Mexico to supply to North and South Americas. Major car makers have established car assembly plants including Nissan Motor, Toyota Motor, Honda, GM, Volkswagen, Ford and Chrysler. Car production in Mexico totaled 2.17 million sets in 2008, the tenth in the world, temporarily decreased to 1.56 million sets in 2009 after Lehman’s fall, while hit record 2.56 million sets in 2011, the ninth in the world.

Mexico’s car export to North America and domestic car sales have recovered steadily. Domestic car production is expected to reach 3.5 million sets by 2015. Nissan Motor already announced the expansion plan to 1 million cars per year. Matsuda Motor and Honda plan expansion and construction of car assembly plants. Japanese component makers, Unipres and Topre decided construction of new plants in Mexico.