Chicago-based flat rolled steel distributor Lex Group expects to expand its sales in the Mexican market, following the opening of a facility in Houston, it announced this week.
With a booming automotive industry, Mexico has increased its demand for rolled steel products in recent years. The company’s CEO, Bob Douglass, told US media several of the company's customers sell products in Mexico.
"By being in Houston, we now have the ability to grow with those customers as well as those that have plants there also,” he said.
KIA Motors is a good example of how the Mexican automotive industry is driving increased demand for rolled steel products. As previously reported by SteelOrbis, automaker KIA Motors expects to consume about 80,000 mt of CRC at its Pesqueria plant in the state of Nuevo Leon by 2018, according to a Mexico’s government document. KIA Motors expects to produce some 110,000 units in 2016, following the plant’s start up in mid-May.
According to a Mexican government resolution, which is reviewing a CRC quota import deal signed between POSCO and Hyundai Hysco, KIA Motors should need 10,000 mt of CRC of automotive quality in 2016, 30,000 mt in 2017 and 40,000 mt in 2018.
According to the Lex Group, the Houston facility is expected to produce up to 15,000 tons of flat rolled steel per month, offering both cold and hot rolled, coated, hot rolled pickled and oiled, stainless and aluminized steel with thickness ranges of .022-.375".
“These products help serve a host of manufacturers based in the south and Mexico including: automotive; office furniture; metal building; light duty shelving; appliance as well as the construction industry,” a company press release detailed.