Voestalpine invests in Mexico to fulfill US$ 600 million order
Austrian speciality steel producer Voestalpine has received an order worth almost US$ 600 million in the automotive sector from a premium manufacturer. Over US$ 31.6 million will now be invested in the construction and extension of sites in Mexico, Germany, Romania, and China in order to fulfill this order, leading to the creation of 165 new jobs, according to a press release.
The majority of the investment volume is allocated to Mexico’s booming automotive market where a new component manufacturing plant will be built in Aguascalientes. The automotive parts produced at the new and expanded Voestalpine sites in future will be used in the construction of a total of more than a million cars.
This major automotive order marks an important step for the Voestalpine Group’s Metal Forming Division expanding its activities in the mobility segment which is scheduled to account for around 50 percent of Group revenue by 2020.
Wolfgang Eder, Chairman of the Management Board of Voestalpine AGWolfgang Eder, Chairman of the Management Board of Voestalpine AG said “According to recent studies, Mexico is currently the world’s seventh largest automotive producer with plans to advance to fifth place by 2020. Over the past year around 3.4 million vehicles rolled off the production lines in Mexico; this figure is scheduled to rise to over 5 million within the next four years.”
The majority of the investment volume needed to fulfill the new order—around US$ 15.8 million—will go towards establishing a new production facility for high-quality automotive components in Aguascalientes, Mexico, creating 80 new jobs. The first complex assemblies for cars, including cross-members, roof frames, and components for the rear apron, will leave the new plant from fall 2017 onwards. The plant is scheduled for full operation in July 2018.
Peter Schwab, Member of the Management Board of Voestalpine AG and Head of the Metal Forming DivisionPeter Schwab, Member of the Management Board of Voestalpine AG and Head of the Metal Forming Division said “In the business year 2015/16 the eight existing Voestalpine locations in Mexico contributed US$ 65.4 million to the US$ 1.27 billion of revenue generated in the NAFTA region; this figure is scheduled to grow to around US$ 3.17 billion by 2020. Voestalpine currently has a workforce of 343 employees in Mexico.”