New production site in Mexico: Waelzholz is filling a gap in the North American market
Anyone driving through the Chuy Maria Amistad Industrial Park near Saltillo today – about 85 km (approx. 53 miles) west of Monterrey – won’t see any signs of this yet. Just dusty ground and open terrain. Only a well-constructed road gives any indication that, starting in mid-2028, Waelzholz will produce up to 50,000 metric tons of customized, cold-rolled steel materials per year on a site covering approximately 60,000 square meters (approx. 15 acres).
Mexico: A growing market driven by industrial demand
The needs of leading international industries have shaped Waelzholz’s strategy for decades. The automotive industry has traditionally played a central role in this regard, while systematic diversification into other sectors has also contributed significantly to the company’s global growth. Close collaboration with customers from various industries laid the foundation for the construction of our facility in China. High-performance electrical steel strip is one example of how we are responding to new technological demands – from electric vehicles to applications in energy and industrial technology. Many of these decisions have been driven by the same conviction: companies that understand and anticipate industrial developments early on can successfully enter into new markets over the long term.
North America is the next logical step. 16 million vehicles1 were produced in the region in 2024. The Mexican automotive supply sector grew by more than 33 percent between 2019 and 2024, reaching $125 billion2. Simultaneously, industrial demand is growing rapidly in other key sectors. At the same time, stricter trade and origin regulations, as well as geopolitical shifts, are fundamentally changing the business environment. Anyone who wants to supply this market must increasingly produce here as well.
This is exactly where our new production facility comes in – it will be a regional source of high-quality steel materials with short delivery routes and technological expertise for the North American market.
We have been engaged in in-depth discussions with customers in North America for years. They all want the same thing: the ability to reliably plan ahead, fast delivery times, and technical support nearby. Thanks to our new location in Mexico, we’ll be able to offer exactly that.
Location advantages for a stable supply chain
We know the market inside out. Since the early 2000s, Waelzholz has been active in North America through its own service center in Cleveland, Ohio, USA. Since 2019, it has also operated its own sales company including a warehouse in Mexico.
The new cold-rolling mill is being built in the Chuy Maria Amistad Industrial Park in Ramos Arizpe, Coahuila, centrally located within one of the country’s most important industrial clusters. Major OEMs and suppliers operate in the immediate vicinity as well as in the southern US states. These short distances enable close technical collaboration with our customers from development through to high-volume production and reduce dependence on global supply chains.
Together with our service center in Cleveland, we are building a regional network that encompasses manufacturing, distribution, and service. The two locations complement each other perfectly and significantly expand our delivery and service capabilities in North America.
In addition to being close to our potential customers, access to reliable raw material sources was a key factor in our decision to establish our site in Ramos Arizpe. High-quality raw materials form the basis for producing high-quality finished products. Waelzholz has traditionally positioned itself here as the link between raw material suppliers and the manufacturing industry. Our localization strategy is therefore based on integrating regional hot-rolled steel strip suppliers with Waelzholz’s technological expertise. To this end, we have already launched initiatives aimed at evaluating and developing local sources of raw materials, and we are driving these projects forward in partnership with the suppliers.
Faster availability and shorter distances. Our new facility, along with our service center in Cleveland, will allow us to serve our customers in North America more effectively than ever before.
Scalable concept, end-to-end process chain, consistent quality
Rolling, heat treatment, slitting – the new facility will cover the entire cold-rolling technology process chain. The concept has been designed for growth from the outset and allows for a gradual increase in capacity to up to 100,000 metric tons per year. The focus is on high-quality cold-rolled steel strip for demanding applications. Specialty grades will be sourced as needed through our global production network.
The same quality and process standards will apply just like at any other Waelzholz location. Our production parameters and testing systems are standardized worldwide. This ensures that customers in the North American market receive steel materials of consistently high quality, with reproducible material properties within extremely tight tolerances.
North America as part of the company’s global strategy
Today, Waelzholz operates production facilities in Europe, Brazil, and China. By opening the new site in Mexico, the company is adding another strategic component to its global development and production network. The underlying belief driving this decision is that global markets are best served through a local presence. Each of these locations not only ensures that we remain close to our customers, but also safeguards the future viability of the entire company.
The facility in Mexico strengthens the regional supply chain, particularly within the North American automotive industry. And the scalable concept makes it possible to gradually increase capacity as needed, thereby supporting the growth of this dynamic market.
For Waelzholz, internationalization means securing a bright future for the company for many decades to come. Our new production facility in Mexico will enable us to systematically expand our global network into an economic region that is strategically important to our customers and strengthen regional supply chains.