Mexican auto production has nearly doubled since 2009, and more growth is anticipated in the coming years. OEMs and auto parts manufacturers are setting up operations in Mexico, which the prospective venture would supply.

Kobe Steel, Partners Eye Mexico CHQ Project

March 8, 2014
Growing automotive market Processing wire products

Kobe Steel Ltd. is part of consortium of companies studying a project to build a joint-venture steel processing operation in Mexico. Under consideration is a new manufacturing concern that would process steel wire rod material into cold-heading quality (CHQ) steel, to supply automakers and their suppliers.

Joining Kobe Steel in the discussion are its affiliated trading company Shinsho Corporation; Metal One Corporation, a steel trading company co-owned by Mitsubishi Corporation and Sojitz Corporation; Osaka Seiko Ltd., a Japanese producer of steel wire for cold heading and cold forging processes; and Republic Engineered Steel, an integrated producer of hot- and cold-rolled steel long products that is a subsidiary of Mexican steelmaker Grupo Simec.

CHQ products are rolled and formed by force through tools and dies, in high volumes, to impart defined shapes and high strength, maintaining the mechanical qualities of the steel. They used in high volume to produce fasteners, in this case automotive quality fasteners.

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