The global HPDC industry in a multidimensional field of tension between opportunities and risks with focus on Mexico

While the entire industry has been struggling with these challenges for several years, the Mexican foundry industry is growing at a rapid pace. Mexico is now the 12th largest economy in the world. International interest in direct investment in Mexico has played a significant role in this development. The automotive sector is a key pillar. The Mexican aluminium foundry industry in particular is benefiting from this. 

Mexico is now one of six major aluminium foundry regions worldwide (USA, Europe, China, Japan, India, Mexico). In the period 2010-2016 alone, twenty-six new aluminium foundries were built in Mexico. The development and current forecasts also make Mexico an interesting foundry location in the long term.

Why is Mexico so interesting compared to other regions?

• HPDC Mexico has grown strongly in recent years and will continue to grow strongly in the coming years.
• The major OEMs, including the European ones (VW, Audi, BMW, Mercedes, Stellantis,...), are already represented in Mexico and are currently investing heavily.
• Labour costs and weekly working hours are attractive (also in comparison to China).
• Nearshoring offers great opportunities (free trade agreement between the USA, Mexico, and Canada).
• Essential HPDC technologies are available. The introduction of further technologies brings further improvements in results with little effort.
• Major international die casting foundries are already in Mexico (USA (7); Europe (11); Japan (3), India (4), China (4 + 2 in planning). Together with the local foundries, a strong and important HPDC region has been created.
• The growing demand for structural parts and GIGA casting (Tesla, Ford, BYD, GM, BMW, VW, Mercedes,...) will significantly expand the current product portfolio.
• Good, current, and historical relations between Mexico and Europe (EUROGUSS, Die Casting Congress, internationally important companies: Nemak, Bocar) make Mexico particularly interesting for Europe.

The aluminium foundry industry in Mexico will continue to be successful in the future. New products, customers and new foundries will emerge.

In the long term, the foundries that face the challenges, question the current strategy, and consistently convert opportunities and risks into success will be successful.

Partnerships and co-operations (Mexico/Europe) can be a key lever for future success.