Flat products
Waelzholz to build its first cold-rolling mill in Mexico
Strategically expanding manufacturing operations in Mexico will secure the long-term competitiveness of the well-established Hagen-based company
Waelzholz is advancing its global growth strategy and building its first cold-rolling mill in Mexico. Starting in mid-2028, the company will produce up to 50,000 metric tons of high-quality steel materials annually for the North American market at this new facility near Saltillo. In doing so, the global market leader in cold-rolled steel materials is responding to rising demand in the region and securing a local supply for its customers that meets the highest standards of quality. For Waelzholz, the project represents a crucial step toward strengthening its global value chains. “By investing in our own cold-rolling mill in Mexico, we are meeting our North American customers’ growing needs with technologically advanced solutions right from their region. This milestone will consolidate our position as a reliable partner in one of the world’s most dynamic markets,” explained Dr. Heino Buddenberg, CEO of the Waelzholz Group.
The North American market – particularly Mexico, as an emerging hub for the automotive and electronics industries – offers tremendous potential for cold-rolled steel materials. And that means tremendous potential for Waelzholz as well. By opening its new production facility, located approximately 85 kilometers west of Monterrey, Waelzholz is transforming its current sales presence into a full-fledged local manufacturing operation. This decision is a direct response to the significant market demand in the region, where approximately 16 million vehicles were produced in 2024 alone, while the Mexican automotive supply sector has grown by more than 33 percent since 2019. “Our customers in North America want to be able to plan with reliability and receive local technical support. The facility in Mexico allows us to offer exactly that – technological expertise right nearby,” said Andreas Reil, Senior Vice President Global Sales at the Waelzholz Group. This systematic “local-for-local” approach also enables Waelzholz to fully comply with the strict origin rules under the United States-Mexico-Canada Agreement (USMCA) while responding with maximum flexibility to specific regional customer needs.
State-of-the-art manufacturing with capacity for growth
The company is building a cutting-edge manufacturing facility on a site covering approximately 60,000 square meters. The facility is scheduled to begin operations in mid-2028 and is designed to have an annual capacity of 50,000 metric tons of customized steel strip products and cover the entire process chain of cold-rolling technology. As a result, the factory will create 100 new jobs in the region. The concept has been designed for growth from the outset and allows for a gradual increase in capacity to as much as 100,000 metric tons per year. The focus is on high-quality cold-rolled steel strip for demanding applications – manufactured in accordance with globally harmonized production parameters that guarantee consistent quality worldwide. This means Waelzholz is ensuring that customers in North America receive steel strip with the same material properties and tightest tolerances they have come to expect from Waelzholz’s other locations. Initially, the product range will center on cold-rolled steel strip and will include high-alloy, low-alloy, and high-strength steel strip, as well as low and high carbon grades. Cold-rolled steel strip is used in the automotive industry for transmission parts, seat components, and vehicle safety systems, among other applications. Waelzholz’s cold-rolled steel strip is also used in the tool and electrical industries.
Highly available and delivered quickly
A key argument in favor of the new location is the dramatic reduction in shipping distances. Especially for customers in the southern United States and Mexico, these routes are currently often thousands of kilometers long. Local manufacturing significantly increases the resilience of the company’s supply chains, as it drastically shortens delivery times and improves local customers’ ability to reliably plan. “Highly available products delivered quickly. Our new facility, along with our service center in Cleveland, will allow us to serve our customers in North America more effectively than ever before,” emphasized Omar Chávez, Commercial Director of Waelzholz México.
Ensuring Waelzholz’s future success and reducing its environmental footprint
In taking this step, Waelzholz is filling a gap in the regional supply chain for precision steel strip. “For Waelzholz, internationalization means securing a bright future for the company for many decades to come. Our new production facility in Mexico will enable us to systematically expand our global network in a key economic region and strengthen the regional supply chains of our globally active customers,” explained Dr. Buddenberg. At the same time, shortening logistics routes directly contributes to the company’s and its partners’ sustainability goals, as a smaller environmental footprint is becoming an increasingly important competitive advantage in modern industry.
The Waelzholz Group, headquartered in Hagen, Germany, has a global workforce of 2,300 employees. At production sites in Europe, North and South America, and Asia, the technology leader produces approximately 780,000 metric tons of high-quality cold-rolled steel strip and profiles per year. With an extremely wide range of steel materials, Waelzholz offers innovative solutions for customers in the automotive industry, the energy sector, and the industrial goods sector, such as thin electrical steel strip for environmentally friendly electric drives and efficient energy generation systems or high-strength spring steel for seat belt systems. Waelzholz advises its customers individually and manufactures materials with precisely defined performance characteristics.
Rendering immagine provided by the Waelzholz Group
