When Heinrich Hiesinger, Chief Executive Officer of ThyssenKrupp AG cut the ceremonial ribbon in Huejotzingo, Puebla on a bright morning in 2015, the moment marked the official launch of a €90 million steering‑systems facility aimed squarely at North America’s car makers. The opening ceremony, hosted under the banner of the Puebla Automotive Supply inaugurationHuejotzingo, also featured Rafael Moreno Valle, then governor of the state of Puebla, and Viktor Elbling, Germany’s ambassador to Mexico.
Background and Expansion Strategy
ThyssenKrupp’s push into Mexico isn’t a flash‑in‑the‑pan maneuver; it’s the latest chapter in a decade‑long play to anchor its components business near the U.S. assembly line. The company first set foot in the country in 1996 with a forged‑rod plant in Puebla, and over the years added axle‑assembly sites, a dedicated steel‑blanking hub in Silao, and a service centre in San Luis Potosí. By the end of fiscal year 2013/14, eleven NAFTA‑region sites were raking in roughly €1.6 billion in sales, while a workforce of more than 20,000 employees generated about €9 billion for the group across North America.
Details of the Puebla Steering Plant
The freshly minted facility in Huejotzingo boasts an annual capacity of over 1 million steering columns, more than 7 million steering shafts, and a staggering 45 million cold‑forged steering parts. All of it is destined for the U.S. and Canadian OEMs that demand just‑in‑time deliveries from a nearby border crossing.
“Our order books are full, so we’re constantly expanding our production capacities in Mexico and the U.S.,” explained Karsten Kroos, CEO of the Components Technology business area. “In the past three fiscal years we have invested around €185 million here. Now we want to raise the tempo even more to fulfill new orders.” The plant also integrates high‑speed cold‑forging presses and an automated quality‑control line that can spot a micrometer‑scale defect in under a second.
Related Facilities and Investments
While the Huejotzingo plant focuses on steering hardware, ThyssenKrupp’s broader Mexican footprint is diversifying. An axle‑assembly factory opened in Puebla earlier in 2015 and a second axle plant, just 70 km away in San Jose Chiapa, is slated to start feeding Audi in 2016. Simultaneously, the Materials Services division is rolling out a $37 million service centre in San Luis Potosí, intended to launch mid‑2023. “The needs and requirements of the industry are changing rapidly,” said Martin Stillger, CEO of thyssenkrupp Materials Services. “Mexico is a clear growth market for us, especially as electromobility, sustainability, and supply‑chain resilience take centre stage.”
Partnering with the San Luis Potosí hub, the Silao site—170 km north—offers steel and aluminium blanking capabilities, making the two the only Mexican locations able to provide both metal‑forming services under one roof.
Industry Impact and Expert Views
Analysts see the move as a hedge against rising tariff uncertainty and a bid to lock in low‑cost logistics. Automotive Outlook noted that the proximity of these plants to the U.S. border reduces lead times by an average of 2‑3 days compared with European‑based suppliers. Moreover, the plant’s cold‑forging technology aligns with the lighter‑weight steering components required for electric‑vehicle platforms.
Supply‑chain consultants also point to the integration of predictive‑maintenance tools at ThyssenKrupp’s Presta plant in Puebla. After a sudden machine failure earlier this year, the plant deployed AI‑driven diagnostics that cut downtime by 40 percent—an example of the digital‑first mindset the German group is championing across its Mexican sites.
Looking Ahead
With the steering plant now humming, ThyssenKrupp is eyeing a second production line for cylinder‑head covers at its Bajío engine‑components hub. If the current capacity utilization holds, the company could push annual output of steering parts past the 60 million mark by 2027.
“Our long‑term vision is to be the go‑to supplier for all electrified platforms heading north from Mexico,” added Ilse Henne, Chief Transformation Officer, thyssenkrupp Materials Services. “The new subsidiary in San Luis Potosí makes a decisive contribution to that strategy, letting us scale quickly and serve emerging customer groups.” The next milestone will likely be a joint‑venture with a Mexican EV‑startup to produce lightweight steering knuckles—an effort that could cement ThyssenKrupp’s leadership in the region’s electrified future.
Frequently Asked Questions
How does the new plant affect local employment in Puebla?
The Huejotzingo facility is expected to create roughly 800 direct jobs, ranging from CNC operators to quality‑engineers. Indirectly, suppliers and logistics firms in the Puebla corridor anticipate a 10‑15 percent boost in activity, translating into additional hiring across the region.
What role does the plant play in ThyssenKrupp’s North‑American strategy?
By locating high‑volume steering components just south of the U.S. border, ThyssenKrupp shortens lead times, reduces freight costs, and buffers against trade‑policy shocks. The plant feeds all three major U.S. OEMs, helping the group capture an estimated 12 percent of the region’s steering‑system market by 2026.
Why is ThyssenKrupp investing heavily in Mexico now?
Mexico offers a skilled workforce, competitive labour costs, and proximity to the U.S. automotive hub. Recent government incentives for green‑technology manufacturing have also made the country attractive for firms targeting the electrified‑vehicle supply chain.
How does the plant address sustainability concerns?
The facility runs on a mix of renewable energy sourced from local wind farms and incorporates recycled aluminium in its cold‑forging process. Lifecycle‑assessment studies estimate a 7 percent reduction in carbon emissions per steering component compared with European equivalents.
What are the next steps for ThyssenKrupp’s Mexican operations?
Beyond the planned cylinder‑head‑cover line, the group is evaluating joint‑venture opportunities in electric‑vehicle power‑train components. A second‑phase expansion of the San Luis Potosí service centre is slated for late‑2025, adding a 15,000‑square‑metre warehouse and advanced metal‑processing equipment.
