Nippon Steel, the world’s second largest steelmaker, and Latin America’s Ternium have confirmed details of a deal inked to form a joint venture in Mexico, mainly to supply Japanese carmakers there.
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The two firms will spend US$350m over two and a half years on the Tenigal joint venture, which will have a capacity of 400,000 tonnes a year.
Ternium will have 51% of the venture and Nippon the remaining 49%, Ternium said in a statement.
The deal was announced in May, but at the time the capital ratio had not been decided, Reuters noted.
Nippon Steel currently supplies high end galvanised sheet steel to Japanese automakers operating in Mexico, including Toyota, Nissan Motor and Honda, through exports.
Ternium, based in Luxembourg and listed on the New York Stock Exchange, is part of privately held Argentine conglomerate Techint and its main operations are in Argentina and Mexico, the report said.
