Japan Kobe Steel, Ltd. Plans to Sep up Wire Production Base in Mexico

Kobe Steel and Shinsho Corp. has signed a letter of intent with 3 corporations (Metal One Corp., Osaka Seiko, Republic Steel), in which they agreed to initiate discussion about setting up a joint venture in Mexico producing and selling cold press steel wires. Mexican car production has risen from 2009's 1.5 million units to 2013's 2.93 million units, and this growth is expected to continue in the future. Car component makers will follow up and enter Mexico, then attracting car fastener makers and cold forged part makers to join. Eventually this will stimulate Mexican demand for cold press steel wires. According to the letter, despite the wire export from the US and Japan has been able to cover Mexico's demand, the companies will prepare for demand expansion and establish local manufacturing and selling structure in Mexico in the future, in order to shorten delivery period of steel wires for clients.