Aluminium in Mexico Strategic Priorities and Investments Analysis

Strategic Priorities

An analysis of the major players in the Mexican aluminium value chain reveals several key strategic priorities driving their activities in 2024 and 2025. A dominant theme across many players, particularly those serving the automotive sector, is the focus on lightweighting solutions and the shift towards e-mobility. Companies like Nemak, Bocar Group, Ryobi Die Casting, and Dynacast are prioritizing the development and production of complex, high-quality aluminium castings and components essential for modern vehicles, including battery housings and structural parts for electric vehicles. This requires significant technological expertise and investment in advanced die casting and machining capabilities. [Industry Key Players]

Another significant strategic priority is sustainability and the circular economy. Given Mexico's lack of primary production, maximizing the use of recycled aluminium is crucial. Players like Novelis, ARZYZ, AMISSA, and REAL ALLOY are heavily invested in secondary production (recycling), emphasizing efficient scrap collection, sorting, and processing technologies. Their strategies include increasing recycling capacity, improving the quality of recycled alloys, reducing their CO2 footprint, and pursuing certifications like the Aluminium Stewardship Initiative (ASI) Standard (ARZYZ, Nemak). [Industry Key Players, Value Chain Analysis] This aligns with growing demand from end-users, especially in the automotive and packaging sectors, for materials with lower embodied carbon.

Capacity expansion and increasing production volume are also clear priorities for several companies aiming to meet growing domestic and export demand. Almexa has a strategic plan to significantly increase its flat-rolled product volume, while ARZYZ is undertaking a major plant expansion. Ryobi Die Casting is increasing capacity specifically to meet demand from the automotive sector and the anticipated growth in EV production. Novelis is expanding its recycling and rolling capacity. [Industry Key Players]

Furthermore, companies are focused on technological advancement and process optimization. This includes utilizing advanced casting technologies (high-pressure die casting, semi-permanent mold), sophisticated furnace systems for recycling, and Industry 4.0 technologies to improve efficiency, quality, and material traceability. [Industry Key Players, Value Chain Analysis]

Serving specific, high-demand end-use sectors remains a core strategy. The automotive industry is paramount, but construction (Cuprum, Almexa) and packaging (Novelis, Almexa) are also key focuses, requiring tailored product offerings and strong customer relationships. [Industry Key Players, Value Chain Analysis]

Recent and Planned Investments

Company	Type of Investment/Project	Description	Amount (if available)	Timeframe/Status
Novelis	Recycling Capacity Expansion	Expanding aluminium recycling capacity in San Luis Potosí.	Not specified	Aiming for 400,000 tonnes/year capacity [Value Chain Definition]
ARZYZ	Plant Expansion	Significant expansion of their plant in Nuevo Leon.	$650 million	Announced September 2024 [Industry Key Players, Value Chain Analysis]
ARZYZ	Technology Adoption / Certification	Pursuing ASI certification; investing in hydrogen-ready furnaces.	Not specified	Ongoing pursuit [Industry Key Players]
Ryobi Die Casting	Capacity Expansion (Automotive/EV)	Investment in the Irapuato facility for additional capacity related to the EV market and increased demand.	$50 million	Announced May 2024 [Industry Key Players]
Almexa	Production Volume Increase	Strategic plan to grow flat-rolled product volume.	Not specified	Plan to reach 60 kt by 2027 (from 15 kt in 2023) [Industry Key Players]
Nemak	Certification	Seeking ASI Performance Standard certification for Mexico facilities.	Not specified	Ongoing effort [Industry Key Players]
Cuprum	Capital Spending	Involved in capital spending for expansion.	Not specified	General strategy, likely ongoing [Industry Key Players]

Evaluation of Alignment:

The analysis of recent and planned investments demonstrates a strong alignment with the stated strategic priorities of the major players in the Mexican aluminium value chain. Companies prioritizing sustainability and the circular economy, such as Novelis and ARZYZ, are making substantial investments in expanding recycling capacity and adopting cleaner technologies like hydrogen-ready furnaces. [Industry Key Players, Value Chain Analysis] Players focused on the automotive sector, particularly the growing EV market, are investing directly in capacity expansion and advanced die-casting capabilities to meet anticipated demand and produce complex components (Ryobi Die Casting). [Industry Key Players] Companies aiming to increase their market share and production volume, like ARZYZ and Almexa, have concrete expansion plans underway. [Industry Key Players] The pursuit of certifications like ASI by Nemak and ARZYZ directly supports the strategic priority of enhancing sustainability credentials. [Industry Key Players] While specific investment details for all players for 2024/2025 are not universally available, the significant announced projects clearly reflect the industry's strategic direction towards growth, sustainability, technological advancement, and serving key end markets, particularly the evolving automotive sector.

References

• Mexico's Aluminum Industry - MeetBuyers (2017-03-23)
• Understanding Aluminium Premiums in Mexico: Market Trends 2025 - discoveryalert.com (2025-04-10)
• VASCONIA: Initiation of Coverage (2021-10-11) - mirandagr.com
• Amissa: Revenue, Competitors, Alternatives - Growjo
• Review of Almexa's Strategic Plan for its Mexican Assets - Grupo Vasconia (2024-04-19) - vasconia.com
• Arzyz metals - Email Address & Phone Number - Lusha
• Arzyz - Copper Cathodes, Aluminum, Alloy - ec21.com
• Novelis - 2025 Company Profile, Funding & Competitors - Tracxn
• FORM S-4 - sec.gov (2011-07-19)
• Top Aluminum companies in Mexico by Gross Profit | StockViz.com
• Nemak - Wikipedia
• Nemak S.A.B de C.V | Members | About ASI - Aluminium Stewardship Initiative - aluminiumstewardship.org
• Arzyz 2025 Company Profile: Valuation, Funding & Investors | PitchBook
• Amissa 2025 Company Profile: Valuation, Funding & Investors | PitchBook
• Almexa Aluminio 2025 Company Profile: Valuation, Investors, Acquisition | PitchBook
• 10-K - sec.gov (2013-03-15)
• For personal use only - asx.com.au (2014-08-28)
• Interim Financial Report Half Year Ended 31 December 2014 - Fleetwood Australia (2014-12-31) - asx.com.au
• Ryobi Die Casting - Manufacturing Today (2017-06-27) - manufacturingtoday.com
• Basic Aluminum Industry in Mexico - marketdatamexico.com
• Ryobi Die Casting: Revenue, Competitors, Alternatives - Growjo
• Mexico-based aluminium auto components supplier Nemak to seek ASI Performance Standard certification - alcircle (2022-08-01)
• Ryobi Ltd Company Profile - Ryobi Ltd Overview - GlobalData
• Nemak - Acicae - acic colabora.org
• Aerospace and Defence Materials Market Report 2031 | Size & Share - Kings Research
• Rising scrap costs negatively impact Novelis profits despite strong demand (2025-02-12) - metalbulletin.com
• Grupo Cuprum 2025 Company Profile: Valuation, Funding & Investors | PitchBook
• Novelis Q1FY22 Results - Hindalco (2023-02-09) - hindalco.com
• La 13e édition de la Tropicale Amissa Bongo verra la participation de 15 équipes (2017-12-10) - lenouveaugabon.com
• VASCONIA: 4Q21 Results - Miranda Global Research (2022-02-23) - mirandagr.com
• Ryobi | Aluminum Die Casting | Shelbyville, IN (2024-05-07) - ryobidiecasting.com
• Ryobi Financial Results Presentation for the First Six Months of Fiscal 2024 (2024-08-08) - ryobi-group.co.jp
• BOCAR - 2025 Company Profile & Competitors - Tracxn
• Sales Volume and Prices of Main Business Increased - Lizhong Group (2024-06-24) - doc.irasia.com
• Dynacast International Inc. Form 10-K Annual Report Filed 2013-03-15 - SECDatabase
• Consulting GmbH - Johannes Messer (2019-12-04) - messer-cg.com
• Mexico Metal Injection Molding Market Size & Outlook, 2030 - Grand View Research
• AFP Cuprum SA, CUPRUM:SGO profile - FT.com
• 10-K - 05/06/2024 - Novelis Inc. - sec.gov
• Status quo killer: Dynacast | Grant Thornton - grantthornton.global
• Nordural - Key Figures 2016 - Norðurál (2017-03-28)
• Aluminum Alloy Market Size, Share & Growth Report 2035
• ARZYZ - Overview, Competitors, News, and Employees | Clodura.AI
• Bocar Group - bocar.com
• Annual Report - sec.gov (2003-06-13)
• NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - Grupo Carso (2024-03-22) - carso.com.mx
• May 6, 2024 - EX-21.1 - 10-K: Annual report pursuant to Section 13 and 15(d) - Novelis Inc. - sec.gov
• Almexa 2025 Company Profile: Valuation, Funding & Investors | PitchBook
• Fujian nanping aluminum co. LTD. - npncl.com
• Arzyz Metals to launch $650 million Mexico plant expansion - mining.com (2024-09-30)
• Mexico relies on imported aluminum - WEDC - Wisconsin Economic Development - wedc.org
• Mexican tariffs said to already be affecting aluminium supply chain and premiums (2024-05-07) - metalbulletin.com
• SMM: Latest News - Mexico Cancels Additional Tariffs on Imported (2024-05-08) - news.metal.com
• AMISSA | Aluminum smelting and smart recycling - amissamx.com
• ARZYZ, S.A. DE C.V. | Members | About ASI - Aluminium Stewardship Initiative - aluminiumstewardship.org
• Real Alloy - The Real Standard for Recycled Aluminum - realalloy.com
• Mexico Automotive Parts Aluminum Die Casting Market Report | Industry Analysis, Size & Forecast - Mordor Intelligence - mordorintelligence.com
• Increasing container costs and tight scrap availability concerns for aluminium industry (2024-06-13) - metalbulletin.com
• Canalum stands firm defending Mexico's aluminium integrity amidst US allegations (2024-02-22) - alcircle.com