At the Lintel Industrial Park in Mexico, Where NST Serves as the Sole Agent, Conducting a Column Setting Up Ceremony for the Construction of a New Coil Center for Electrical Steel Sheets

Feb 27, 2024

Nippon Steel Trading Co., Ltd. (hereinafter "NST") announces that a Column setting up ceremony was held on January 24th for the construction of the "NIPPON STEEL TRADING COIL CENTER MEXICO S.A. DE C.V."* (located in Apaseo El Grande, Guanajuato State, Mexico, hereinafter referred to as "NSTCCM"), a coil center currently under construction at the Lintel Industrial Park in Mexico, where our Industrial Supply & Infrastructure Division serves as the sole agent. NSTCCM is a coil center specialized in the processing and sales of electrical steel sheets and will become a crucial supply base for capturing the steadily anticipated demand related to electric vehicles in North America.

During the ceremony, we celebrated the successful completion of the earthworks for the new NSTCCM factory and the commencement of construction on the factory building. The ceremony included rituals such as signing the column heads, erecting the columns, and purification, all to pray for the safety and success of everyone involved in the construction work and the project. It was also a valuable opportunity to express our gratitude for the tremendous support from both internal and external stakeholders, which has enabled the transition to the building construction phase.

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Collaboration between the Steel Division and the Industrial Supply & Infrastructure Division in the NSTCCM Construction Project

■ The Industrial Supply & Infrastructure Division provides extensive supports

In the construction of NSTCCM, the Infrastructure, Machinery & Railway Department of the Industrial Supply & Infrastructure Division, along with the Lintel Industrial Park, have been collaborating with the Steel Division from the project's planning and survey stages, working together to advance the construction project while leveraging synergies between the divisions.

○ During the survey stage

Providing geopolitical basic information about Mexico

Proposing industrial land

Introducing and supporting construction companies using local networks

Conducting risk surveys for natural disasters

Researching Mexico's logistics environment and costs

Supporting negotiations with local state governments

○ At the time of establishment

Providing information on procedures and schedules related to the establishment of NSTCCM

Introducing talent agencies for local employee recruitment

Introducing real estate companies for securing residences for expatriates

Supporting the installation of solar power generation equipment at the factory

Introducing necessary companies for operations, such as leasing companies and industrial waste disposal firms

■ Aiming for factory operation commencement in April 2025 and full-scale expansion

NSTCCM aims to achieve an annual production of 120,000 tons in the future and will play a crucial role in the supply chain for supplying electrical steel sheets to the huge North American market, the world's second-largest auto market where the shift to EVs is rapidly progressing. The Steel Division and the Industrial Supply & Infrastructure Division will continue to strengthen their collaboration and prepare for the factory's operation commencement in April 2025 and full-scale expansion.

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○ Notice regarding Changes in Specified Subsidiaries

○ Studying the Possible Establishment of a New Steel Service Center for Electrical Steel Sheet in Mexico

*The Industrial Supply & Infrastructure Division

* Inquiries regarding this release:

 Corporate Communications Section

 General Affairs & Corporate Communications Department


 TEL: +81-3-6772-5003 FAX: +81-3-6772-5401