Mexican steel products manufacturer Grupo Deacero is developing a joint venture with Japanese producer Summit Steel Corporation aimed to establish a production facility in Nuevo Leon to supply wire rod for Mexico’s automotive industry, the Nuevo Leon-based company revealed to local media in recent days.
Raul Gutierrez Muguerza, CEO of Deacero, said that by adding value to steel products in Mexico with more specialized products hinders or prevents the entry of other competitors.
Gutierrez added that before thinking about exports, it is important to develop the domestic market since there’s still a lot of imported steel.
"We have analyzed the flat steel market, but it requires very large investments and we feel that we still do not have the capacity to carry them out," he said. “But these partnerships allow us to give a greater added value and compete in a niche that we did not have, such as the automotive."