Hyundai Steel, the steel unit of South Korea’s Hyundai Motor Group, is expected to commence production at its Mexican plant this month, the company said.
The company didn’t give a precise date for its Mexican plant to commence operations, however, it clarified it will run an operational test before it starts production of cold-rolled steel plates for the automotive industry. Hyundai’s Mexican plant is located in the city of Monterrey, in the state of Nuevo Leon.
Hyundai expects to meet the growing demand for steel from automakers, including Kia Motors, Hyundai Steel’s largest shareholder, with a 19.78 percent stake. Shareholders at Hyundai Steel include chairman Jung Mong-Goo (11.84 percent) and Hyundai Hysco (2.29 percent).
The Mexican plant will supply the automaker cold-rolled steel plates for up to 400,000 autos per year. Hyundai Steel spent about $44 million to build the facility.