Shinsho Corporation and Kobe Steel have agreed to establish a joint venture in Mexico to produce steel wire of cold heading (CH) quality with Metal One Corporation, Osaka Seiko, Mexico’s Grupo Simec and O&k American Corporation in the United States.
Called Kobelco CH Wire Mexicana (KCHM), the new joint venture will process steel wire rod into CH steel wire for sale to automotive parts manufacturers in Mexico. CH steel wire is used to make automotive fasteners and cold-forged products. KCHM will be headed by President Mitsufumi Konishi, who will come from Shinsho. The company will be established in the Santa Fe Industrial Park in Silao, state of Guanajuato, Mexico. Total investment is anticipated to reach approximately USD 41M. KCHM will be capitalised at USD 11.9M.
Shinsho is anticipated to hold 40% of KCHM; Metal One, 25%; Kobe Steel, 10%; Osaka Seiko, 10%; Simec, 10%; and O&k American, 5%.
The joint venture will employee about 80 people when it reaches full production. Operations are to start at the end of 2015. The new plant, with a production capacity of 40,000 tons per year, will have wire-drawing machines, pickling equipment and heat treatment furnaces.
