Mastering Mining Alloy Welding: SMS/3W’s Advantage

Q: What are the main reasons mining companies seek SMS/3W's services?

A: One of the main reasons companies look for us is our experience. Many service department managers are familiar with our company and what we can offer based on what we accomplished in previous jobs.  Our specialization in alloy welding is in high demand, especially in north and central Mexico. Any company can work with nickel-chromium, but we differentiate ourselves by being a diversified company that integrates design services, machining, welding, assembly, fabrication, and after-sales customer service, which adds significant value to our work. Our extended warranties are also a plus, as not all welding companies are willing to make such a commitment.

Our capabilities are not limited to welding and machining; we are developing an alternative cooling technology for air conditioning, in line with the new NOM-035. This not only improves operator comfort inside the machinery, but also gives us an additional advantage.

Q: Given new market needs, how is SMS/3W actively pursuing developments within the industry?

A: We are constantly seeking new technologies, materials, and tools to enhance our processes and deliver superior quality. We have embraced more advanced welding technologies like inverters, which afford us greater portability and precision in our work. We strive to stay at the forefront of the industry by continuously innovating and exploring new welding suppliers and tool providers. We do not confine ourselves to the usual options; instead, we are always on the lookout for fresh opportunities.

Q: How does SMS/3W address sustainability in its operations and offerings?

A: The importance of minerals in daily lives cannot be overstated. While we are committed to sustainability, navigating challenges is complex, particularly in steel and welding, where gas emissions are inevitable. We have implemented stringent guidelines and protocols to ensure safety and minimize environmental impact. We actively pursue recycling and explore alternative production methods. While aspirations for solar energy and advanced technologies are high, Mexico’s infrastructure does not fully support their implementation, but we remain receptive to seizing such opportunities as they arise.

Q: How has the company been impacted by recent political and economic changes, such as tariffs and fluctuations in steel costs?

A: During 2021 and 2022, the company grappled with significant challenges stemming from the surge in steel costs. We transitioned from managing steel priced at about MX$16 (US$0.94) to MX$17 per kilogram to confronting prices as high as MX$60 to MX$62 per kilogram. Fortunately, the steel market in Mexico appears to have stabilized, with prices now fluctuating between MX$23 and MX$37 per kilogram, depending on the type of steel.

While Chinese steel offers enticing prices, it is necessary to acknowledge the potential variance in quality. China stands as a global titan in steel production, offering a vast array of options across the quality spectrum. Nevertheless, our company has remained relatively unaffected by this competition, as we heavily rely on US steel, particularly alloys engineered to withstand impact and abrasion.

Q: What are SMS/3W objectives for 2024, and how do you view the landscape after the elections?

A: Uncertainty is inevitable during government transitions. The sector could not take off during the current administration due to challenges with concessions and permits. Despite this, we do not feel threatened as we are actively diversifying our portfolio, focusing on coating, cooling, and electric equipment. Our main objective is to promote our electric air conditioning line. We also have forged a partnership with Swedish company Nord-lock, which significantly reduces machinery downtime, spare parts costs, and repairs.

SMS/3W provides material supply, construction optimization, project fabrication, and machinery maintenance for mining companies.