Papalotes Steel, the third largest independent pipe producer in Mexico, inaugurated its fourth distribution center with a distribution capacity of 30,000 metric tons (mt) per year in the Mexican state of Querétaro to serve at least seven states that contribute more than 22 percent of Mexican GDP.
The capacity of the new distribution center is 2,500 mt per month, for a total of 30,000 mt per year. In monetary terms it would be between $2.9 million and $3.4 million per month, information sources familiar with the company's operations told SteelOrbis.
Papalotes Steel is located in the northern city of General Zuazua, 24 miles northeast of the capital of Nuevo León, Monterrey. It is the third largest independent producer (not integrated into a steel company) of pipes in the country, only surpassed by Perfiles LM and the independent leader Productos Laminados de Monterrey (Prolamsa).
The new distribution center, Papalotes Steel, joins the one located in the central state of Puebla and the two it has in the State of Mexico (the second largest economy in Mexico): Tlalnepantla and Los Reyes-La Paz.
According to information sources, Papalotes Steel will serve clients from neighboring states such as San Luis Potosí, to the north; Guanajuato, to the west; Hidalgo, to the east; Michoacán to the southeast. In addition to Jalisco and Aguascalientes. According to Mexico 's System of National Accounts, those seven states contribute 22.4 percent of Mexico's total GDP ($1.8 trillion).
The company produces round, square, and rectangular pipes, corrugated steel sheets, galvanized steel plate manufacturing, “C” Purlin Manufacturing, among others.
Perfiles LM has six distribution centers located in Monterrey, Nuevo León; Culiacán, Sinaloa; San Luis Potosí; Guadalajara, Jalisco and in Mexico City. Prolamsa has distribution centers in Culiacán, Guadalajara, Mexico City, San Luis Potosí and Tlalnepantla, and one in the United States (Laredo, Texas).