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Value Chain Definition on the Aluminium in Mexico.

The aluminium industry value chain in Mexico is significantly shaped by the country's limited domestic bauxite reserves and negligible primary aluminium production. As a result, the initial stages of the global aluminium value chain, bauxite mining and alumina refining, are largely absent in Mexico. The Mexican value chain primarily begins with the importation of primary aluminium and, importantly, a robust secondary aluminium production (recycling) sector. This is followed by various fabrication processes that transform the raw and recycled aluminium into semi-finished and finished products for a range of demanding end-use industries, such as automotive, construction, and packaging.

Value Chain outline

The aluminium value chain in Mexico can be outlined as follows, focusing on the prominent activities within the country:

  • Importation of Primary Aluminium and Scrap: This is the entry point for a significant portion of the aluminium supply in Mexico due to the lack of domestic primary production. Both primary aluminium ingot and scrap are imported.
  • Secondary Aluminium Production (Recycling): A crucial step in the Mexican value chain, involving the collection, sorting, and processing of aluminium scrap to produce recycled aluminium alloys.
  • Semi-Fabrication: This step involves transforming primary and secondary aluminium into various semi-finished product forms like extrusions, flat-rolled products (sheets, plates, foil), and billets for casting and forging.
  • Further Fabrication/Manufacturing: In this stage, the semi-fabricated aluminium products are processed into finished components and products for specific applications in various industries.
  • End-Use Industries: The sectors that consume the fabricated aluminium products.

Identification and description of each step in the value chain.

1. Importation of Primary Aluminium and Scrap

  • Identification and description of segments: This step doesn't have distinct segments in terms of processing but rather relates to the type of aluminium imported:
    • Primary Aluminium Import: Importing raw, unalloyed aluminium in various forms, such as ingots, directly from other countries.
    • Aluminium Scrap Import: Importing waste and scrap aluminium for recycling.
  • List of types of players in each segment:
    • Trading companies
    • Aluminium producers (importing for their own processing)
    • Recycling companies (importing scrap)
    • End-users (importing specific forms for their manufacturing)
  • Detailed description of the main activities within each segment:
    • Primary Aluminium Import: Activities include sourcing primary aluminium from international producers, logistics (shipping, customs clearance), and distribution to domestic fabricators and manufacturers.
    • Aluminium Scrap Import: Activities involve sourcing various grades of aluminium scrap from international markets, inspection, logistics, and delivery to secondary production facilities.
  • List examples of key players with detailed profiles: Specific companies primarily focused only on import are less visible; often, manufacturers and recyclers handle their own imports. However, international metal traders play a role. Due to the nature of the data, detailed profiles of import-specific players are not readily available.

2. Secondary Aluminium Production (Recycling)

  • Identification and description of segments:
    • Scrap Collection and Sorting: Gathering and separating different types of aluminium scrap (e.g., Used Beverage Cans - UBCs, industrial scrap, automotive scrap).
    • Melting and Alloying: Processing collected and sorted scrap in furnaces to melt it down and create specific aluminium alloys.
    • Casting: Producing recycled aluminium in various forms like ingots, billets, or molten metal for further processing.
  • List of types of players in each segment:
    • Scrap collectors and aggregators
    • Recycling facilities/companies
    • Secondary aluminium producers
  • Detailed description of the main activities within each segment:
    • Scrap Collection and Sorting: This involves establishing collection networks, sorting scrap based on purity and alloy type, and preparing it for melting (e.g., shredding, baling).
    • Melting and Alloying: Operating furnaces to melt scrap, removing impurities, and adding alloying elements to achieve desired material properties for different applications.
    • Casting: Pouring molten aluminium into molds to create solid forms like ingots or billets, or transporting molten metal directly to nearby customers.
  • List examples of key players with detailed profiles:
    • ARZYZ, S.A. DE C.V.: A Mexican company founded in 1980, dedicated to the manufacturing of aluminium alloys and the commercialization of non-ferrous metals. They are committed to aluminium recycling and the circular economy, operating three manufacturing facilities for crushing scrap, smelting, casting, and distribution. Their products include continuous casting ingots, traditional ingots, slabs, molten metal, sows, and cones, serving industries like automotive, construction, steel, and packaging.
    • AMISSA: Established in 1991, AMISSA is described as one of the most important secondary aluminium recyclers in Mexico. They specialize in the production of secondary aluminium alloys using rotary furnaces and Industry 4.0 technologies, aiming for a reduced CO2 footprint. They produce a variety of alloys (e.g., 380, 413, 356, 319, ADC12, DM104) for the automotive, electrical, and home appliance industries.
    • REAL ALLOY: A leading company in aluminium recycling and alloy production with facilities in North America, including Mexico. They specialize in converting aluminium scrap and by-products into reusable aluminium in various forms like molten metal, ingot, RSI, or cone, serving clients across North America.
    • Almexa: Mentioned as one of the largest recycling companies in Mexico (information is from 2017).
    • Almetek: Mentioned as a large processor of recycled aluminium (information is from 2017).
    • Alretech: Mentioned as a large processor of recycled aluminium (information is from 2017).
    • Alucal: Mentioned as a large processor of recycled aluminium (information is from 2017).
    • Aluminicaste: Mentioned as a large processor of recycled aluminium (information is from 2017).
    • Lince - Aluminum & Alloys: Provides aluminium casting services with an installed capacity of 650 tons per month, using reverberatory furnaces for specific alloys. They produce high-quality secondary aluminium for different industries.

3. Semi-Fabrication

  • Identification and description of segments:
    • Extrusions: Producing aluminium profiles with specific cross-sections by pushing heated aluminium through a die.
    • Flat-Rolled Products: Manufacturing aluminium sheets, plates, and foil through rolling processes.
    • Castings: Producing shaped aluminium parts by pouring molten metal into molds (this can be an intermediate step for further machining or a final product).
    • Forgings: Shaping heated aluminium through localized compressive forces.
  • List of types of players in each segment:
    • Extrusion companies
    • Rolling mills
    • Foundries (Die casters, sand casters, etc.)
    • Forging companies
  • Detailed description of the main activities within each segment:
    • Extrusions: Heating aluminium billets, forcing them through dies using a press, stretching and cooling the extruded profiles, and performing finishing operations like cutting and heat treatment.
    • Flat-Rolled Products: Hot and cold rolling of aluminium slabs or ingots to produce sheets, plates, and foil of various thicknesses and specifications.
    • Castings: Designing molds, melting aluminium alloys, pouring molten metal into molds, and solidifying and cleaning the castings. This includes high-pressure die casting, a significant activity for the automotive sector.
    • Forgings: Heating aluminium stock and shaping it using hammers or presses.
  • List examples of key players with detailed profiles:
    • Nemak: A leading global provider of lightweighting solutions for the automotive industry, specializing in the development and manufacture of aluminium components for powertrain and body structure applications. They are a large consumer of secondary aluminium products. Nemak has facilities worldwide, including in Mexico, and focuses on advanced automotive die casting technologies.
    • Cuprum: A large manufacturer of industrial and architectural aluminium products, including ladders, windows, and profiles. Located in Nuevo Leon, they are mentioned as a large consumer of secondary aluminium products.
    • Bocar Group: A significant player in the automotive parts aluminium die casting market in Mexico. They are a manufacturing company with a location in Mexico City.
    • Dynacast: A large corporation with a presence in Mexico, specializing in manufacturing small engineered precision components using proprietary die-casting technology. They have a large production capacity and serve the automotive market.
    • Ryobi Die Casting: Another key company in the Mexico automotive parts aluminium die casting market, with a location in Guanajuato.
    • Canalum: The National Chamber of the Aluminium Industry in Mexico, representing the interests of companies in the sector, including extruders.

4. Further Fabrication/Manufacturing

  • Identification and description of segments: This step is highly diverse and depends on the final product application. Segments align closely with the end-use industries:
    • Automotive Components Manufacturing: Producing a wide range of aluminium parts for vehicles (e.g., engine blocks, cylinder heads, structural components, wheels).
    • Construction Products Manufacturing: Fabricating aluminium frames for windows and doors, curtain walls, roofing, and structural elements.
    • Packaging Manufacturing: Producing aluminium cans, foil containers, and flexible packaging.
    • Consumer Goods Manufacturing: Manufacturing aluminium components for appliances, furniture, and other consumer products.
    • Electrical and Machinery Manufacturing: Producing aluminium parts for electrical systems and industrial machinery.
  • List of types of players in each segment:
    • Automotive parts manufacturers
    • Construction material manufacturers
    • Packaging companies
    • Appliance manufacturers
    • Machinery and equipment manufacturers
  • Detailed description of the main activities within each segment: Activities include machining, stamping, welding, assembly, surface treatment, and finishing of aluminium components to meet the specific requirements of the final product.
  • List examples of key players with detailed profiles:
    • Nemak: (See profile under Semi-Fabrication - they also perform further fabrication of automotive components).
    • Cuprum: (See profile under Semi-Fabrication - they also perform further fabrication of construction products).
    • Stellantis (Monterrey plant): An automotive manufacturer that sources aluminium billet locally for vertical integration in producing automotive parts.
    • Tesla (Nuevo León gigafactory - under construction): Expected to be a significant consumer of aluminium for structural components in automotive manufacturing.
    • Grupo Bimbo: A major food industry player that utilizes aluminium packaging for its products.
    • CCL Container: A contract manufacturing company with a location in Mexico focusing on container production.
    • Salzburger Aluminium Group: A large contract manufacturing company in Santa Catarina, Mexico, involved in aluminium processing.
    • MES, Inc.: A contract manufacturing company in Ciudad Apodaca, Mexico, involved in aluminium processing.

5. End-Use Industries

  • Identification and description of segments: These are the major sectors driving demand for aluminium in Mexico:
    • Automotive Sector: The largest consumer, using aluminium for lightweighting initiatives to improve fuel efficiency and performance.
    • Construction Sector: Utilizes aluminium for structural elements, windows, doors, facades, and other architectural applications.
    • Packaging Sector: Employs aluminium for beverage cans, food containers, and flexible packaging due to its barrier properties and recyclability.
    • Aerospace Sector: Uses high-strength aluminium alloys for aircraft components.
    • Electrical Engineering: Utilizes aluminium in cables, conductors, and electrical components.
    • Consumer Goods: Incorporates aluminium in appliances, furniture, and other durable goods.
    • Machinery & Equipment: Uses aluminium in various industrial machinery components.
  • List of types of players in each segment:
    • Automotive manufacturers (OEMs) and their supply chain
    • Construction companies and developers
    • Food and beverage companies
    • Aerospace manufacturers
    • Electrical equipment manufacturers
    • Consumer goods manufacturers
    • Industrial machinery manufacturers
  • Detailed description of the main activities within each segment: Activities involve the design, assembly, and utilization of products that incorporate aluminium components.
  • List examples of key players with detailed profiles: Companies like Nemak and Cuprum (detailed above as fabricators), and automotive companies with manufacturing presence in Mexico (e.g., Stellantis, Tesla), and packaging companies like those utilizing aluminium cans. Due to the vastness of these sectors, providing detailed profiles for a comprehensive list of end-users is beyond the scope, but the key types of players are listed.

Show estimates of volumes and sizes of each step in the value chain.

Providing precise volume and size estimates for each specific step (especially for the highly fragmented fabrication and end-use stages) with up-to-date data is challenging based on the provided sources. However, the overall market size and some volume indicators are available:

  • The Mexican aluminium market was valued at USD 3.86 billion in 2023 and is projected to reach USD 6.36 billion by 2030, with a CAGR of 6.7% from 2024 to 2030. Another source estimates the market size at USD 3.74 billion in 2024, projected to reach USD 6.33 billion by 2034 with a CAGR of 5.40%.
  • Mexico's aluminium industry contributed about $7 billion to Mexico's GDP (information from 2016/2017).
  • In 2022, Mexico's aluminium imports totaled approximately 27 million metric tons.
  • Secondary aluminium production grew 9.3% in 2024. Novelis is expanding recycling capacity in San Luis Potosí to 400,000 tonnes/year.
  • Estimates from 2017 suggest that 97% of scrapped aluminium cans are recycled in Mexico.
  • In 2018, Mexico produced 645,000 metric tons of aluminium, with ingots making up 60.2% and profiles 32.2%.
  • Mexico was the main exporter of aluminium products to the US market, accounting for USD 660 million of US extruded aluminium imports in 2022.
  • The automotive sector's lightweighting initiatives require increasing amounts of aluminium per vehicle, projected to be 180 kg per vehicle, up from 140 kg in 2020.
  • Packaging demand is significant, with canned beverage production consuming an estimated 450,000 tonnes of aluminium annually by 2025.

Due to the import-dependent nature and the significant recycling activity, the "volumes and sizes" at the initial stages (mining, refining, primary smelting) within Mexico are negligible or zero. The volumes become significant from the import stage onwards and are reflected in the secondary production, semi-fabrication, and consumption data.

Value Chain Summary Table

Value Chain Step Main Activities Key Segments (if applicable) Types of Players Examples of Main Players
Importation of Primary Aluminium & Scrap Sourcing, Logistics, Distribution Primary Aluminium Import, Aluminium Scrap Import Trading companies, Aluminium producers, Recyclers, End-users (Less specific players publicly identified, often integrated activities of other players)
Secondary Aluminium Production Scrap Collection & Sorting, Melting & Alloying, Casting Scrap Collection, Melting & Alloying, Casting Scrap collectors, Recycling facilities, Secondary producers ARZYZ, AMISSA, REAL ALLOY, Almexa, Almetek, Alretech, Alucal, Aluminicaste, Lince
Semi-Fabrication Extruding, Rolling, Casting, Forging Extrusions, Flat-Rolled Products, Castings, Forgings Extrusion companies, Rolling mills, Foundries, Forging companies Nemak, Cuprum, Bocar Group, Dynacast, Ryobi Die Casting, Canalum
Further Fabrication/Manufacturing Machining, Stamping, Welding, Assembly, Surface Treatment Automotive Components, Construction Products, Packaging, etc. Automotive parts manufacturers, Construction material manufacturers, Packaging companies, etc. Nemak, Cuprum, Stellantis (partially integrated), Tesla (future), Grupo Bimbo (as consumer)
End-Use Industries Design, Assembly, and Utilization of products containing aluminium components. Automotive, Construction, Packaging, Aerospace, Electrical, Consumer Goods, Machinery & Equipment Automotive manufacturers, Construction companies, Food & beverage companies, Aerospace manufacturers, etc. Stellantis, Tesla, Grupo Bimbo

Examples of Main Players

  • ARZYZ, S.A. DE C.V.: A prominent Mexican company specializing in secondary aluminium alloys and non-ferrous metals trading. They operate integrated facilities covering scrap crushing, smelting, casting, and distribution, serving diverse industries including automotive, construction, and packaging with products like ingots, slabs, and molten metal.
  • AMISSA: Recognized as a key secondary aluminium recycler in Mexico with 30 years of experience. They focus on sustainable recycling practices using advanced technologies to produce secondary aluminium alloys for the automotive, electrical, and home appliance sectors, aiming to reduce the carbon footprint.
  • REAL ALLOY: A significant player in aluminium recycling and alloy production across North America, with a presence in Mexico. They process aluminium scrap and by-products into various forms like molten metal and ingots, emphasizing technologically advanced furnace systems for efficiency and handling contaminated scrap.
  • Nemak: A global leader headquartered in Mexico, providing lightweight aluminium solutions primarily for the automotive industry. They are involved in the development and manufacturing of complex aluminium castings for powertrain and body structure applications, being a major consumer of secondary aluminium.
  • Cuprum: A notable Mexican manufacturer of aluminium products for industrial and architectural applications. Based in Nuevo Leon, they produce items like ladders, windows, and profiles, indicating significant downstream fabrication activities and consumption of aluminium.

Volumes and Sizes

  • The overall Mexican aluminium market size was valued at USD 3.86 billion in 2023, with projections to reach USD 6.36 billion by 2030.
  • Aluminium imports by Mexico were around 27 million metric tons in 2022.
  • Secondary aluminium production is a significant volume contributor, with a 9.3% growth in 2024. Novelis's expansion aims for 400,000 tonnes/year of recycling capacity.
  • While specific volumes for each fabrication segment are not readily available, flat-rolled products and extrusions are significant. In 2018, ingots (largely from secondary production) accounted for 60.2% of Mexico's aluminium production, and profiles (extrusions) accounted for 32.2%.
  • The automotive sector is a major demand driver, with an increasing amount of aluminium per vehicle.
  • The packaging sector, particularly canned beverages, is estimated to consume 450,000 tonnes of aluminium annually by 2025.

Market shares for individual players across all segments are not comprehensively available in the provided data. However, companies like Nemak and Bocar Group are identified as major players in the automotive parts aluminium die casting market in Mexico.

Current bottlenecks and challenges in the Mexican aluminium industry include:

  • Reliance on Imports: Due to limited domestic primary production, Mexico is heavily reliant on importing primary aluminium and scrap, making the industry vulnerable to international price fluctuations, trade policies (like tariffs), and logistics disruptions. Recent tariffs imposed by Mexico on aluminium imports have impacted the supply chain and increased premiums.
  • Scrap Availability and Quality: While recycling is significant, there are mentions of scrap shortages impacting secondary supply and increasing reliance on primary imports. Ensuring consistent scrap quality and sorting is also a challenge.
  • Logistics and Infrastructure: Bottlenecks in domestic infrastructure can complicate the collection, processing, and transportation of scrap. Increased freight costs and container shortages also pose challenges for imports and exports.
  • Environmental Regulations and Sustainability: Compliance with environmental regulations regarding emissions control, waste management, and energy efficiency can increase operational costs for producers.
  • Trade Policy Volatility: Changes in trade policies, such as tariffs, create uncertainty and can impact regional trade flows and competitiveness.
  • Lack of Transparent Trade Data: Difficulty in accessing official, reliable trade data in Mexico is highlighted as a challenge for industry monitoring and analysis.
  • Technological Bottlenecks: While some players adopt advanced technologies, small and medium-sized enterprises can face idle capacity due to technological limitations.

References

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