Thyssenkrupp Materials Services continues its expansion in Mexico to serve the aluminium and steel automotive component market

ThyssenKrupp Materials Services continues to expand in North America and plans to open a new facility for its Materials de Mexico division in San Luis Potosí. The company is investing around $37 million in a service centre in the city, which will support the future viability of the automotive supply industry, which is proliferating here. However, the new site will create jobs for around 65 employees. As a result of this step, the largest mill-independent materials distributor and service provider in the Western world strengthens its leading position in the North American market and aligns its service business with the evolving needs of its customers.

Martin Stillger, the CEO of ThyssenKrupp Materials Services, said, "The needs and requirements of the industry are changing rapidly. Against the background of the major transformation themes of electro-mobility, sustainability and supply chain resilience, Mexico is a clear growth market for us. Here we can support customers with our Materials as a Service strategy precisely in these key areas."

 Collectively, ThyssenKrupp Materials Services has invested around $102 million in the North American market in the last 12 months.

The new location features a Schuler blanking line for cutting aluminium and high-strength steel blanks for the automotive industry. Due to its low weight, aluminium helps to reduce emissions and is often used prominently in electric vehicles. The automotive industry is responding to increasing demand brought on by the faster transition to electric mobility and stricter emission standards planned by the US government. The USA is the biggest sales market for Mexican suppliers – around 80 per cent of sales are generated in this region.

Juan Carlos Valladares Eichelmann, the Secretary of Economic Development stated, “San Luis Potosí will be a key geographical site for this international company to reach the State, due to the enormous advantages of its infrastructure and its industrial vocation.”

Olaf Voss, the CEO of ThyssenKrupp Materials de Mexico, said, “With the opening of the plant, we will be able to further expand our unique position in this pre-processing service in the Mexican market.  We appreciate the good collaboration with the Secretariat of Economic Development of San Luis Potosí on this important project.

The new site joins the company's existing service center in Silao, 125 miles away, which already has an aluminium blanking line to become the only facility in the country offering this service. All aluminium blanks for the auto industry not produced at these sites will have to be imported as prefabricated parts from the USA.

The company currently has three service centers in Mexico, located in Saltillo, Silao, and Puebla, in close proximity to an array of OEMs and suppliers to the automotive industry. In the region in north-central Mexico (El Bajío) where the new branch is being built, other companies are planning to expand their activities. The short delivery routes and the connection to a railroad line at the new location in San Luis Potosí enable both cost-efficient and sustainable operations, with "just in time" delivery. Capacities and supply chain management can be flexibly adapted to customer needs. The new San Luis Potosí site is scheduled to start operations in mid-2023.

Ilse Henne, the Chief Transformation Officer of ThyssenKrupp Materials Services, said, "The new subsidiary makes a decisive contribution to our future strategy Materials as a Service in North America. We are offering new services, expanding our service portfolio and using our expertise in the processing of aluminium blanks at the Silao site to scale our business and tap into new customer groups."