EUROGUSS ¡Hacia nuevos mercados! – Heading for new markets!
The EUROGUSS family with the eponymous parent fair in Nuremberg, Germany, and its successful ancillary fairs ALUCAST in India and CHINA DIECASTING are getting bigger: From 24 to 26 October 2018, the exhibitors pavilion EUROGUSS Mexico will be realized in Guadalajara within the frame work of Fundiexpo, Mexico's largest foundry trade fair.
For exhibitors, the EUROGUSS Mexico opens up access to the Mexican economic area, one of the leading markets for automobiles and automotive parts, and from there to many more markets.
Mexico is the seventh-largest car manufacturer in the world and the fourth-largest car exporter behind Germany, Japan and South Korea. Recent studies suggest that in the long term Mexico will develop into a hub for the world-wide export of automobiles. Almost all renowned manufacturers of automobiles and automotive parts operate production plants in Mexico. "From many discussions we know that Mexico is a strategically important market for our exhibitors. By investments of the international OEMs, a supply chain will be established in the next years, which traditionally also includes light metal foundries“, confirms Rolf Keller, member of the management board of NürnbergMesse.
The NürnbergMesse trade fair company supports exhibitors in establishing contacts to the Mexican market and deepening them. In this context, Mr. Keller draws attention to the cooperation with the foundry association SMF (Sociedad Mexicana de Fundidores), which also organizes the Fundiexpo trade fair, and emphasizes: "We accompany our customers into strategic markets and are sure that with the EUROGUSS Mexico pavilion we can establish a perfect platform in Mexico”. The first companies have already registered. "As a long standing exhibitor of EUROGUSS in Germany, KUKA will of course participate at EUROGUSS in Mexico. The Mexican market is highly interesting for us and we see a lot of potential for the future there," says Steffen Günther, Vice President Casting Solution EMEA and Americas, KUKA Industries GmbH & Co. KG. Another participant is AWEBA which explains its fair participation as follows: "The suppliers for the automotive industry are confronted by dramatic changes globally. For AWEBA as an internationally active company, the participation at EUROGUSS Mexiko is important in order to better evaluate opportunities and risks of these market developments”.
Mexico and the Die-Casting Market
By far the largest consumer of die-castings in Mexico is the automotive industry. According to the investigations of the market research company Mordor Intelligence, the Mexican market for automotive parts made by die-casting will grow to a volume of 1.8 billion US-Dollars until the year 2020, whereby in the aluminium die-casting sector a growth rate (CAGR) of 8% is expected until the year 2020. Among Mexico’s leading suppliers of die-castings made from light metals there are companies such as BOCAR, Castwel Autoparts, Die Casting Solutions, Dynacast, Endurance Group, Gibbs Die Casting Group, NEMAK, Power-Cast Monterrey, Rockman Industries and Sandhar Technologies.
This will yield interesting opportunities especially for suppliers of light metal foundries to open up new business relationships. There is a great demand for mold and tool manufacturers, manufacturers of die-casting machines and lines, companies which offer solutions related to industry 4.0 or the after-treatment of castings, manufacturers of industrial furnaces, but also for companies which offer systems for the processing and utilization of operating data as well as companies which are specialized in modernization measures.
NürnbergMesse Offers Exhibitors Extensive Service
Being part of the Fundiexpo, EUROGUSS Mexico occupies a pavilion with an area of approximately 500 m² and will be held from 24 to 26 October 2018. The venue is the Expo Guadalajara fairground in Guadalajara, Mexico’s second largest city where many international companies such as ZF Friedrichshafen, Continental Automotive or IBM are located.
Fundiexpo is Mexico’s largest foundry trade fair with approximately 170 exhibitors and 5.000 professional visitors. The programme of EUROGUSS Mexico comprises a conference on current topics related to light metal casting and is organized by NürnbergMesse with different partners. The fair organizer NürnbergMesse handles the complete organization for EUROGUSS exhibitors so that they can fully concentrate on conversations and establishing contacts. The trade fair is focussed on exhibitors from the entire value supply chain of light metal casting.
The EUROGUSS Trade Fair Family: The Leading Die-Casting Shows
In all even years, the European die-casting industry meets at the trade fair EUROGUSS in the Exhibition Centre Nuremberg, Germany. For three days, approximately 600 exhibitors and 12,000 trade visitors receive information on the latest technology, processes and products. EUROGUSS is the only event that covers the entire die-casting process chain: from high-tech machines via new materials to efficient services. Furthermore, the NürnbergMesse Group is active in the field of die-casting at the CHINA DIECASTING (annually in Shanghai), at the ALUCAST, which takes place in India at changing locations all even years, as well as at the EUROGUSS Mexico pavilion in the framework of the Fundiexpo trade fair.
Background Mexico:Country, Market and Infrastructure
Mexico, a country with about 123 million inhabitants and with a surface of nearly 2 million km² almost six times as large as Germany, is the second-largest national economy of Latin America behind Brazil, the seventh-largest automobile manufacturer in the world and the fourth-largest automobile exporter behind Germany, Japan and South Korea. Besides the automobile sector, the electrical industry, the aerospace industry, the oil and gas industry, the chemical sector, energy technology, exploitation of energy from renewable sources, mechanical engineering, the food industry and medicine technology have great economic importance. Benefiting from its geographic position and trade agreements with more than 40 countries, Mexico offers access to many markets in the American and Pacific areas. The country is connected with the EC and benefits both from the membership in the Pacific Alliance and from the North American Free Trade Agreement (NAFTA) with the USA and Canada. As consequence of the Nafta renegotiations, the country wants to diversify its trading activities much more. This will lead to new opportunities for foreign equipment suppliers. Some of the strengths of the country are: low wages, a well-developed infrastructure, the market development by numerous foreign companies and already well established supply chains. Among others, more than 1700 companies with German capital investment are busy in Mexico and have made investments of approximately 30 billion US-Dollars there.
The Automotive Industry
The Mexican automobile manufacturers association AMIA (Asociación Mexicana de la Industria Automotriz) expects that Mexico will produce almost 3.8 million passenger cars and light commercial vehicles in the year 2017. This would represent an increase of 8.2% compared to the year 2016. In the first seven months of the year 2017, 2.2 million units left the factories, 10.8% more than in the same period of the previous year. The leading customer in the export business is the USA. From January until July 2017, the country bought approximately 14% more passenger cars and light commercial vehicles than in the comparable period of the previous year. While automobile manufacturers such as Mercedes-Benz (with Nissan), BMW, Audi and Toyota erected new factories in Mexico, other manufacturers such as General Motors, Fiat-Chrysler, Honda and Hyundai have been expanding their existing factories. Also for Chinese automobile manufacturers, Mexico is becoming more and more interesting as a production country.
The Mexican association of automotive parts manufacturers INA (Industria Nacional de Autopartes) anticipates that in 2017 the sales of the supplier industry will increase by 4 % compared with the previous year to over more than 80 billion US-Dollars. In the year 2017, the USA alone will probably receive components worth more than 60 billion US-Dollars from Mexico.
Meanwhile, most of the tier 1 and tier 2 suppliers are present in Mexico. Now, the influx is marked by tier 3 companies, service suppliers and equipment suppliers for tier 1 to 3 companies. A further trend is that already established suppliers are expanding their range of customers beyond OEMs from their own home country.
This article is a press release of the EUROGUSS.