Hyundai Steel has said that it will start operating a plant in Mexico in March to provide the steel necessary for North American production, reports Yonhap News Agency. Construction of the plant is due to be completed within the month, and it will begin to produce cold-rolled steel plates for cars after a test operation. Hyundai Steel said the plant is result of a USD44 million investment, and will provide the Kia assembly plant being constructed in Mexico with enough cold-rolled steel plates to produce 400,000 cars per year. The report also notes that Hyundai Steel said similar facilities are under construction in Chongqing and Tainjin, China, to be completed later in 2016 and first half of 2017.
Significance: According to the IHS Automotive production forecast, the Kia plant in Monterrey, Mexico, is scheduled to see production begin in May 2016. The Kia Forte will be the first vehicle to be assembled at the all-new facility, followed by the Kia Rio and Hyundai Accent in 2017. Production in Mexico is forecast to be near 300,000 units in 2018, but will pull back somewhat in 2019 and 2020. The new plant will increase Hyundai Motor Corporation’s North American production from 755,988 units in 2015 to 1.23 million units in 2018. Along with the additional plant, Hyundai is adjusting the output of its US plants to better match vehicle production to US market trends, adding production of the Santa Fe Sport to Hyundai’s Alabama plant.
