thyssenkrupp opens new axle assembly plant for Audi in San José Chiapa Mexico

 Just-in-time/just-in-sequence deliveries for Audi’s Q5 model

 Group’s components division remains on growth course in North America

PUEBLA, Mexico (28 April 2016) thyssenkrupp today opened a new automotive components plant in Mexico to produce front and rear axles for its customer Audi. The new axle assembly plant is located on-site at the industrial park built by Audi in San José Chiapa, where the new Q5 will go into production this year. At the roughly 6,000 square meter thyssenkrupp facility up to 160 employees will assemble around 175,000 axle modules a year and supply them just-in-time/just-in-sequence to Audi’s production line.

“We are very proud to be part of one of the most advanced auto production sites in the world. In the highly competitive assembly and logistics business, quality and delivery performance are key. We are delighted to have been selected for this project by our customer Audi and to be able to establish a further production site here in Mexico,” said Thomas Müller, CEO of thyssenkrupp’s automotive assembly and logistics business, at the opening ceremony for the new plant. Just 70 kilometers away in Puebla thyssenkrupp already operates an axle assembly facility for Volkswagen, supplying front axles for all of VW’s model platforms in Mexico.

Axle assembly operations are highly synchronized with original equipment manufacturing (OEM) assembly lines. Axle modules are assembled in in 45 seconds and delivered on a just-in-sequence and just-in-time basis, i.e. each component is delivered to the customer at exactly the time it has to be installed in the vehicle. At the new plant in San José Chiapa, the time required from receipt of the customer order to shipment of the complete axle is just under three hours.

thyssenkrupp is a longstanding partner to the automotive industry in Mexico. The company has been producing components in the country for the North American auto market since the 1960s. Today the Group operates four component facilities in Mexico with products ranging from engine and steering components to springs and stabilizers to axle module assembly. thyssenkrupp is currently expanding its presence as a components supplier in Mexico as part of its growth and regionalization strategy in North America. In this and the past fiscal year alone the Group has invested around 270 million euros to open or relocate automotive component plants and expand a materials facility in Mexico. Two production sites for chassis and powertrain components are currently under construction. As a result of the good order situation further investments will follow later this year.

thyssenkrupp in the automotive industry

thyssenkrupp is one of the world’s leading suppliers of materials and components to the auto industry. Nine out of ten premium class cars are fitted with components made by the company. One in three trucks feature drive components from thyssenkrupp. In the 2014/2015 fiscal year thyssenkrupp’s sales in the automotive sector came to around 9.8 billion euros. Customers include practically all the big auto manufacturers.

thyssenkrupp Components Technology business area

Employing around 29,000 people thyssenkrupp’s Components Technology business area produces high-tech components worldwide for the automotive and machinery sectors. In the auto sector the product range includes assembled camshafts, cylinder head modules with integrated camshafts, crankshafts, steering and damping systems, springs and stabilizers as well as the assembly of axle modules. In the machinery sector thyssenkrupp supplies components for construction equipment, wind turbines and numerous general engineering applications. In fiscal year 2014/2015 the Components Technology business area achieved sales of 6.7 billion euros.