voestalpine opens two new automotive plants in the booming Mexican market

For many years now, Mexico has been one of the world’s fastest growing automotive markets. Almost all the major brands are represented in this southernmost NAFTA country, with up to four million vehicles rolling off the production lines each year.

According to Eder, it is not yet possible to determine the potential impact on voestalpine activities of the new agreement between the USA and Mexico announced early this week.

In August 2018 the serial production of body and structural components used in vehicle cross-members, roof frames, and rears began at the new site in Aguascalientes, which was established primarily in response to having secured a major contract for a premium automotive manufacturer worth USD 600 million. voestalpine Automotive Components Aguascalientes also has unique expertise in wheel housings, manufacturing the Group’s most complex automotive component to date consisting of 20 individual parts.

Since 2016 voestalpine has invested EUR 15 million in developing the new plant, and capacity will be expanded further by 2019 with a similar level of investment. Once complete, around 80 employees will operate ten assembly lines in the 10,000 m² plant.

Another Metal Forming Division automotive site has now been officially opened a further 120 kilometers to the north at Zacatecas. voestalpine Rotec Inc. has already been producing highly sophisticated tube components used in vehicle undercarriages, steering systems, and car bodies at the 3,000 m² plant here since November 2017. Forty employees work at the plant, operating five high-tech production lines. “Opening our own production facilities in Zacatecas allows us to serve local automotive manufacturers even better than before, also in the tube components product segment,” says Schwab.

565 employees at a total of 13 voestalpine sites in Mexico generated overall revenue of EUR 274 million in the business year 2017/18. In addition to the automotive industry which accounts for the largest share of revenue at over 28 percent, the Group is also active in the country’s railway infrastructure, mechanical engineering, energy, construction, and consumer goods industries.

The Metal Forming Division of the voestalpine Group achieved a total sales volume of EUR 2.7 billion and an operating result (EBITDA) of EUR 325 million in the business year 2017/18. The division has a workforce of around 12,000 employees and does business with almost all European car manufacturers. Within the Group, it constitutes the center of competence for highly refined sections, tubes and precision strip steel products and ready-to-install system components made of pressed, stamped and roll-formed parts. Its combination of material expertise and processing competence, which is unparalleled throughout the industry, and its global presence make the division the preferred partner to customers looking for innovation and quality.