News, Insights and Best Practices for Manufacturing in Mexico

ThyssenKrupp expands it operations in Mexico

30 Apr 2015

Category: Automotive Manufacturing, Manufacturing in Mexico

"Mexico's automobile manufacturing industry is a key reason for the growth of the country's economy."

For a number of years, Mexico has seen foreign companies come and begin setting up manufacturing operations in the country. With a relatively low barrier to entry and a cheap but highly skilled labor force committed to producing quality products, expanding to Mexico has become a major point of emphasis for organizations that already have offshore operations and those that might be considering setting up an operation of this kind.

Companies across a variety of industries - from aerospace to automotive - are currently doing business in Mexico. Some of those organizations make sizeable capital investments to build their own standalone factories, while others elect to work with shelter companies that make it easier for firms to quickly get their operations up and running in Mexico.

Because the Mexican government is aggressively encouraging foreign companies to consider moving their production efforts to the country, it seems that there is news almost daily of organizations either moving to Mexico or existing corporations building upon the presence they've already established in the country.

ThyssenKrupp opens its fourth Mexico plant
ThyssenKrupp is a multinational company that has its headquarters in Germany, but has more than 670 companies across the globe operating under its corporate umbrella. ThyssenKrupp is one of the largest steel producers in the world and makes metal components for everything from elevators to automobiles.

According to a Canadian Manufacturing report, ThyssenKrupp recently announced the opening of a new factory in Mexico that will build parts for vehicle steering units. The company invested $97.8 million to build this facility.

"Our order books are full so we are constantly expanding our production capacities in Mexico," Dr. Karsten Kroos, who serves as ThyssenKrupp's CEO of components technology, said in a press release. "To fulfill new orders we are planning further investment in North America averaging around 80 million euros [$87 million] a year up to 2020. Around half of this will go into expanding and building new plants in Mexico."

The company's latest facility was constructed in Puebla, Mexico and will give ThyssenKrupp the ability to make 45 million steering parts that are cold-forged, seven million steering shafts and approximately 1 million steering columns, all on a yearly basis.

ThyssenKrupp is one of the largest steel manufacturing company in the world. ThyssenKrupp is one of the largest steel manufacturing companies in the world.

ThyssenKrupp's history in Mexico
Mexico's automobile manufacturing industry is a key reason for the growth of the country's economy. There are a number of major automotive companies that produce a variety of vehicles in the country. This has opened the door for organizations who serve as unofficial partners to these firms to establish a presence in Mexico as well. ThyssenKrupp is one of them.

The component technology division of ThyssenKrupp currently employs roughly 4,500 people in its 11 North American locations, according to a report from The Yucatan Times. Of this number, half of these people live and work in Mexico. The new plant in Pueblo is the company's fourth location in Mexico, making crucial automotive components such as axle modules, springs and stabilizers, as well as engine and steering parts.

However, ThyssenKrupp is also constructing a factory in San Jose Chiapa that will assemble axles that will be used in the manufacturing of Audi vehicles by next year.

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