¡Que viva México! voestalpine is participating in the economic boom currently underway in the Central American country, and sees much future potential in the automotive and special steel sector.
There’s certainly cause to prick up your ears when you read that Mexico could be exporting more cars than Germany by 2018 (study by Deloitte & Touche GmbH). Automotive manufacturers from around the world will be investing around USD 17 billion in this country over the next five years, expanding the industry’s role in supporting Mexico’s economy. Good reasons for voestalpine to continue to drive forward its activities in this market.
According to a study by Roland Berger (“Automotive boom in Mexico”, March 2016), the strategy consultants attest that Mexico’s positive economic climate will continue. The producers in established automotive industry parks can use the advantages of proximity to the North and South American markets and the excellent logistics: airports and more than 150 international ports on the Atlantic and Pacific coasts offer cost-effective transport connections. Mexico is also a world champion when it comes to free trade, with 11 free trade agreements covering 46 countries.
Cars, cars, cars
Mexico is one of the most promising markets in America, especially for the automotive industry. Over the past year around 3.4 million vehicles rolled off the production lines in Mexico, and by 2020 this number is forecast to rise to over 5 million. Premium manufacturers play an increasing role in this growth. Yet the growth is greater than suitable local suppliers can cope with. A technology gap requiring almost USD 50 billion in investment to fill opens up opportunities for further market players, including those offering high-gloss parts, laser cutting, and hot forming. Consequently, the Metal Forming Division is increasingly shifting its focus towards the Mexican automotive market.
voestalpine is also considering further investments in the special steel sector. To date the Special Steel Division is represented by four local Aceros Bohler Uddeholm subsidiaries. As early as 2008 voestalpine company Nortrak acquired DAMY, the Mexican market leader for turnouts, as a means of strengthening its presence in Latin America. With voestalpine Böhler Welding México S.A. de C.V., the Group’s welding specialists are also well positioned in the country.
During the business year 2015/16 the eight voestalpine sites in Mexico contributed EUR 62 million of the EUR 1.2 billion in revenue generated in the NAFTA region. This figure should grow to at least EUR 3 billion by 2020. Continuing to expand activities in Mexico will contribute to achieving this ambitious goal.