Nippon Steel Corp., Sumitomo Pipe & Tube Co. Ltd., Sumitomo Corp., and Metal One Corp. have established a joint-venture company in Silao, Guanajuato, Mexico, to build a manufacturing and sales base for automotive steel pipes and tubes. Approximately 2.6 million four-wheeled automobiles were produced in Mexico in 2011. Automobile production in Mexico is expected to increase substantially in the future as a result of new entry into the Mexican market and the increase in production capacity of Japanese automakers. This increase in automobile production is expected to lead to a rapid expansion of demand for middle- to high-grade steel pipes and tubes. The joint-venture company, scheduled to begin production in June 2013, will supply products to Japanese, North American, and European automakers and auto parts manufacturers in Mexico.