California Steel Industries to build $370m galvanizing line at Fontana mill

California Steel Industries (CSI), a joint venture between American steel producer Nucor and JFE Steel of Japan, will construct a continuous galvanizing line at its mill in Fontana, California, to cater to the construction end markets in the western US.

The new galvanizing line with 400,000 tons of annual capacity will help California Steel Industries to achieve a total hot dip galvanizing capacity of 1.2 million tons per annum.

CSI anticipates completing the construction of the $370 million galvanizing line in 30 months subsequent to regulatory approvals.

Leon Topalian — Nucor Chair, President, and CEO said: “With recent closures of galvanizing capacity in the western region, CSI is seizing an opportunity to provide the high-quality value-added products that our customers have requested.

“This investment continues the strong partnership we have cultivated with JFE Steel of growing together in North America.”

California Steel Industries manufactures over two million tons of finished steel and steel products per year and serves end-use markets such as construction, service center, and energy markets.

The flat-rolled steel converter with over 800 full-time and temporary employees, has five product lines namely hot rolled, cold rolled, pickled and oiled, galvanized, and ERW pipe.

In December 2021, Nucor acquired a 51% stake – a 50% stake from a subsidiary of Vale and a 1% equity ownership stake from JFE Steel – in California Steel Industries, marking its second partnership with JFE Steel.

In 2020, Nucor and JFE Steel partnered to form their first 50/50 joint venture company Nucor JFE Steel Mexico to manufacture hot-dip galvanized steel sheets for automobiles.