Doing Business In Mexico

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Mining and Steel

Success Story

Since the opening of their Mexico office, steel company Vesuvius has raised its profile and expanded its business in the country. The company, which provides steel makers, foundries and even oil refineries with materials, services and technologies that are used in high-temperature industrial processes, is now working hard to improve its productivity and expand its business in Mexico as more private steel companies move into the area.

"We are one of Vesuvius' lowest cost locations around the world," says Andres Delfino, Business Unit Manager in Vesuvius Mexico. "We have taken advantage of being in a place that has many skilled workers, allowing us to grow quickly and efficiently. Our goal in the near future is to attract more business within Mexico as the market here expands. We want to be seen as one of our company's top offices."

 

Key Fact

According to the 2011 edition of "Ranking of Countries for
Mining Investment" by BEHRE DOLBEAR, Mexico occupies
fifth place worldwide in the lowest risks for mining investment
table, after Canada, Australia, Chile and the USA.

Mining

Mexico is a major supplier of metals including silver, ranked first in the world, lead (fifth), zinc (eighth), copper (thirteenth) and gold (fifteenth). Today 279 foreign enterprises are contributing to the investment and exploration of Mexico's mining sector.

Many new investments are beginning to come to fruition. In Mexico the mining extraction sector is second in terms of investment and it sees stable yearly growth.

Steel

Mexico is the thirteenth largest producer of crude steel in the world and the second largest in Latin America with a production of 18.1 million tonnes in 2010 and an installed capacity of 22.2 million tonnes. Mexico has considerable appeal as a steel producer, and factors like receptivity to foreign investment are encouraging major players in steel end- use sectors such as automotive and electrical equipment to establish extensive and sophisticated manufacturing facilities in Mexico.

The industry's input cost advantage, which includes labour, electricity and gas, enables it to profitably and competitively export steel products.


Business Opportunities

Mining

  • Mexico has major opportunities in mineral exploration.

  • Mexico has eleven giant deposits of silver, three of copper, two of molybdenum, five of zinc, one of lead, one of manganese and one of fluorite. These deposits represent opportunities for exploration, machinery, tools, consultancy and new technology.

  • Companies with expertise in feasibility studies have also big opportunities in the mining sector in Mexico.

Steel

  • The iron and steel industry in Mexico is experiencing intellectual challenges. Companies are open to R&D that can provide the know-how and knowledge in different fields such as new technologies, composites material, new applications, demand and price forecasting, among others.

  • In the next five years, the ironworks sector in Mexico will invest about US$10,000 million to grow and diversify their products, replacing imports.

  • Home supplies such as stoves and refrigerators continue to grow in demand; therefore materials such as steel and copper are being required much more.

     

Contact and Further Information

Information about the specific business opportunities for the mining and steel sector can be obtained by contacting the UKTI team in Monterrey: 
British Consulate Monterrey Tel: +52 81 8356 5359 Email: cbotello@ukconsulate.org

For more infomration on Mining Opportunities in Mexico, click here to download the PDF

 

Source - UKTI

 

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