An investment in the future – Precision steel tubes for the NAFTA region

The Mannesmann Precision Tubes Group’s Mexican plant in Guadalajara is currently being expanded to the tune of some 30 million euros. The background of the capacity boost is the necessity to serve rising customer expectations through a broader product range. This also means greater opportunities to generate additional market shares in the North American automotive market.
The Mexican car market is developing into one of the most important growth markets in the NAFTA region. Many important volume and premium suppliers, as well as a number of automotive suppliers are investing in the construction and expansion of manufacturing capacities.
Reason enough for Salzgitter AG to ramp up its international precision tube activities through the subsidiary Mannesmann Precision Tubes (MPT) and to make a clear commitment to the site in Guadalajara, Mexico. In October 2007, Mannesmannröhren-Werke made the leap across the Atlantic when they took over Bresmex in order to be able to supply a major customer locally. MPT's investments in the expansion of its Mexican plant also grew out of the idea of increasing production close to the sites of their customers from the automotive and supplier industry. The capacity increase is focusing on welded precision steel tubes for chassis technology.

The groundbreaking ceremony for the factory expansion was held on October 25, 2017, with MPT executive board chairman Dr. Clemens Stewing presiding. After its completion, the Mexican production site will be able to produce welded precision tubes for the engine, transmission and drive train, as well as precision steel tubes for shock absorption technology. "We are currently not present in these segments because capacity bottlenecks in the factory prevent us from producing tubes with thicker walls. Once the new investment has been implemented, we shall be among the most attractive suppliers in a niche market with few local competitors," as MPTMX executive directors José Sanchez and Manuel Anchondo stated with certainty.
Completion and startup are planned for March 2019. Until then, there employee qualification investments will also be made: a further precondition to remain a leading manufacturer of high quality, welded precision steel tubes in Mexico and to expand this market position even further.