Automotive Certifications Aid Expansion into Other Steel Segments

Q: What does Ellwood offer and how does having diversity across multiple industries enhance the company's solutions?
A: Ellwood is a US-based manufacturer of steel, tool grade and aluminum tooling. About 80-90% of our market share is in the automotive sector. However, we are working hard to grow our other two key sectors, which are construction and human consumption.

One of our strengths is that we use automotive certifications to guarantee quality to the customer, even if that client is in another sector. This has helped us to open markets with other clients and sectors, differentiating us from the competition.

Q: What role does Queretaro play in the company's business model and how is distribution handled?
A: Our manufacturing and materials come from the US. We use Queretaro as a warehouse for distribution within Mexico. What companies are looking for in Mexico is mainly cheap labor. Those companies are our target, as they are usually involved in the manufacturing of complex parts. Before, complex parts were only manufactured in Asia and Europe but Mexico is now competitive in this segment. However, clients need a reliable supply chain. Currently, our competitors do not have the capacity to meet customer demand. Ellwood, on the other hand, already has a well-developed market, especially in the US, which allows us to supply all of North America. As an example, while the war between Ukraine and Russia affected the entire industry, but we had an alternative supply chain, which allowed us to continue working, unlike our competitors.

Also regarding distribution, some in the industry believe that transporting steel by rail from the US would be a game changer but we don't really see a big difference because we already have an efficient program that ensures good distribution and does not impact costs. In the beginning, we used train transportation to fill the warehouse but now that we have a good-sized inventory, there is no need for mass transportation.

Q: What are the company's short- and long-term objectives?
A: In the short and medium term, we are looking to improve our presence in the Mexican market. We already have a presence from Tijuana to Puebla, but we are not in some other regions, such as southeast and central Mexico, among others. In the long term, we are looking to open a market in South America. We want industries to know that Ellwood can meet all the requirements of the current market and what it may need in the future.


Ellwood Specialty Metals Mexico is one of the leading producers and distributors of tool-grade steels and aluminum used in diverse sectors, including automotive, aerospace, household appliances, petroleum and construction.