wiredinUSA October 2014

Wire rod joint venture

A joint venture between Shinsho Corporation, Kobe Steel, Metal One Corporation, Osaka Seiko Ltd, Grupo Simec and O&K American Corporation has been established to produce cold heading steel wire. The new venture, Kobelco CH Wire Mexicana, SA de CV (or KCHM), will process steel wire rod into cold heading steel wire for sale to automotive parts and fasteners manufacturers in Mexico. KCHM will be headquartered in Guanajuato, Mexico, and headed by president Mitsufumi Konishi from the

Shinsho Corporation. Total investment is anticipated to reach around $41 million with Shinsho the major shareholder. Operations at the plant, which will have wire drawing machines, pickling equipment and heat treatment furnaces, are due to begin at the end of 2015. Demand for cold heading steel wire is likely to increase in the coming years as many Japanese parts manufacturers establish operations in Mexico. There is expected to be a growing need for local sourcing of the material.

wiredInUSA - October 2014

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