PRODUCTOS LAMINADOS DE MONTERRY (Prolamsa), a steel pipe manufacturer in Mexico, Sankin Corporation, a manufacturer of cold drawn steel tube, and JFE Shoji Trade Corporation, agreed to establish a joint venture company for manufacturing and sales of cold drawn tube, especially focusing on automobile use. Upon conclusion of the joint venture agreement, the new company will be established in the suburbs of Monterrey city, Mexico, near to Prolamsa’s main factory.
Investments by Western and Japanese automobile and related businesses, backed up by extensive FTA network and relatively competitive labour costs, are rapidly increasing in Mexico. Also, in the field of auto-parts industry, the demand for higher quality of cold drawn steel tube has been increasing, urging the shift to local purchasing. The new JV is expected to capture these demands of not only Japanese customers, but also American and European customers as well, with responding to the customers’ requirement, and exercising manufacturing and sales activities on the forefront of the market.
