« Insights > Maquiladora

Steel Boom Thanks to Assemblers

Admin | 14.05.2013

Steel manufacturers in Mexico are red-hot and they will therefore invest US$11.5 billion here within the next four years, to be in the position to supply automobiles assemblers, according to the Mexican Chamber of Iron and Steel Industry, Camara Nacional de la Industria del Hierro y del Acero (Canacero).

Steel manufacturers in Mexico are red-hot and they will therefore invest US$11.5 billion here within the next four years, to be in the position to supply automobiles assemblers, according to the Mexican Chamber of Iron and Steel Industry, Camara Nacional de la Industria del Hierro y del Acero (Canacero).

Canacero said that its members want to substitute the industry’s imports, since currently 2 out of the 6 million tons of steel imported into Mexico every year are for automobiles assemblers. 

Nissan, Honda, Mazda and Audi will open new plants in Mexico, while Volkswagen, General Motors and Ford will increase their production; therefore, vehicles manufacture will grow 40% in the next four years. 

This will lead to a higher demand for steel, especially high resistance rolled steel, which is imported. 

Leopoldo Orellana, CEO Mazda, said that currently all the steel used in manufacturing the body of the cars leaving their new plant in Salamanca is imported, because they do not find the raw material in Mexico with the required quality. 

“We know that significant investments are being made and we may start working with Mexican steel in the near future; it will be a huge step”, he said.

Source

Insights

Top