Nidec plans to expand steel press machinery output for Mexican market
With an eye on growing demand for high-tensile steel used in automobiles, Kyoto-based manufacturer Nidec announced plans to produce large servo press machines and market them in the U.S. and Mexico.
The company will build a plant in Ohio in order to supply both markets. Two plants in northern Spain are also in the works, according to Japanese media.
As automotive trends demand to reduce car weight, original equipment manufacturers (OEMs) are turning to light-weight, high-tensile steel for use in vehicle construction.
In a path to diversify its motor-related businesses, Nidec plans to build servo presses that offer greater versatility in pressure and speed than hydraulic models and are better suited to work with thin steel of very high strength.
The plants are estimated to cost US$ 88.1 million and will come on line by 2020.
The company entered the press machinery market in 1997 with the acquisition of a Japanese press maker and now considers the business a medium and long-term strategic segment.
The Nidec group is believed to rank third worldwide in press machines, after Germany’s Schuler and Japanese rival Aida Engineering.