Conduit Rymco, a Mexican producer of steel tubing for the electrical and construction industry will build a 15,000-square-meter plant to serve the aeronautical and automotive industries with an investment of $45 million, an official told SteelOrbis in a telephone interview.
“They already have the machinery for the new plant. It's in the cellars on the other floor. In the new plant they will produce tubes for the aviation and automotive industry,” said Víctor Martínez, director of Economic Development of the northern city of Frontera, where the company's plant is located.
Martínez said he does not know the production capacity that the new plant will have, although he said that construction began last month and when it is operational it will require 350 additional jobs to the almost 600 current workers at plant #1 in that city.
SteelOrbis contacted the company's spokesperson, Genaro Martínez, by telephone, however he chose not to respond.
The city of Frontera is 150 miles southwest of the border city of Eagle Pass, Texas. It is three miles from the Altos Hornos de México steel company (AHMSA), paralyzed by insolvency, and 130 miles northwest of Pesquería, the city where the Ternium steel company's industrial complex is located in Pesquería, Nuevo León.
Martínez said that Frontera has a wide range of industrial parks available, sufficient water, and sufficient electrical energy because the power plant that supplies the city operates at less than 40 percent of its capacity. Furthermore, the price of land or industrial warehouses is much lower compared to the metropolitan area of Monterrey, because with the arrival of the American company Tesla Inc. to Santa Catarina, Nuevo León, land prices became more expensive.
In addition, Frontera has road infrastructure and a connection to the Ferromex rail network, which connects to the Union Pacific Railroad and BNSF Railway networks.