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Samuel, Son & Co. expands operations in the country; arrives in Querétaro with 35 million dollars

By Dinorah Becerril

Querétaro

May 26, 2023





Samuel, Son & Co. inaugurated a processing center in the  Aerotech Industrial Park in which it invested 35 million dollars and will generate 35  direct jobs in a first phase for its operation aimed at serving the automotive sector in Mexico.

Once the plant reaches its maximum capacity, in the next three or four years, it could reach 100 direct jobs.

“The Bajío region represents one of the largest automotive clusters in the country. This new operation will allow us to support our customers competitively in the region as the automotive market continues to expand,” said Patrick Maloney, president of  Samuel Automotive Group.

He highlighted that Mexico concentrates 24% of the production of passenger cars in North America, and combined with the auto parts industry, represents 17.2% of the country's gross domestic product.

The production of  Samuel, Son & Co. in Querétaro will supply the automotive market in the country, between  Original Equipment Manufacturers (OEM), Tier 1 and 2. Of the total, 70% of what will be processed and will ship is for the companies in Querétaro and the rest to the states of Guanajuato, Puebla and Mexico City.

"The automotive industry demands on-time delivery and a lean and dynamic supply chain, which is important for us because more automotive businesses are coming, new assembly companies, such as Tesla - which will demand a large part of its production from companies located in the Bajío -, who need to know that we have the products ready and with deliveries in less than four hours, meeting their quality and service requirements”, said Óscar García Leal, VP commercial automotive.

Samuel, Son & Co. also intends  to increase its supply in the region, García said, because when the company started operating in Mexico, between 15 and 20% of the production that was shipped was with suppliers in the region and the rest of import Currently, this percentage has increased to about 50% from Mexico and the rest from imports (30% from the United States and 20% from Europe).

“Our intention is that our supply is geolocated in the region. Our strategy is to continue developing these grades in Mexico to reach a goal of 70% supply from the region in the country and the remaining 30% from North America”, he specified.

This would also comply with the requirements outlined in the  Treaty between Mexico, the United States and Canada (T-MEC), to comply with the rules of origin of content, so that 70% of the steel and aluminum used in vehicles comes from region of.

The building has an area of ​​12,720 square meters and has a state-of-the-art Alcos brand flat product  slitter production line  , with the capacity to process 72-inch-wide rolls in a thickness range of 0.015 to 0.25 inches, with a processing speed of up to 1,000 feet per minute on the high speed line and 410 feet per minute on the low speed line.

The line has the capacity to process rolls of up to 70,000 pounds or 35 tons, with four  Omis brand traveling cranes available. It also has a 15,000-pound capacity forklift.

Up to 45,000 tons of material can be stored in the building. And  Samuel, Son & Co. has a shipping capacity of 10,000 tons per month, which could increase as its operation grows.

The product line includes flat carbon steel, stainless steel and aluminum, all with specifications to meet the needs and requirements of the automotive industry.

The company's property has an area of ​​53,143 m3 so, according to Óscar,  Samuel  is ready for a second expansion to include a second processing line or lines to make rectangular and shaped metal cutting.

This is the second plant of  Samuel, Son & Co. in Mexico, since it has a complex in Apodaca, Nuevo León.

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