New ARZYZ FRP project opportunity for Mexico to depend less on imports

Mexican secondary aluminium alloy smelter and distributor of primary metals ARZYZ Metals expects that the company’s new project to produce domestic flat-rolled products (FRP) will reduce Mexico's dependence on imports, a press officer told Fastmarkets on Monday June 24

ARZYZ is developing the new project to vertically integrate and better serve the domestic flat-rolled products market in Mexico.

The initiative marks the first of three stages. In this first step, ARZYZ will produce 80,000 tonnes per year, providing materials for automotive inner body parts, appliances, HVAC systems, cabinets and B&C applications.

“We expect to produce the first coil by mid 2026. We aim to lead the Mexican aluminum market through vertical integration into FRP and expand our services to the automotive and packaging industries,” the press officer said. “As a local producer, we ensure a reliable supply chain with shorter delivery times for our domestic clients, even improving their working capital. Additionally, our production volume will reduce the importation of FRP into Mexico.”

Imports of aluminium rolled products have a 30% duty, which was imposed in April by the Mexican government. Currently, based on domestic production, there’s neither the necessary volumes of FRP nor the raw material to cover demand in the country.

The tariffs were imposed in a range of 20-35% on aluminium imports from countries which Mexico does not have free trade agreements (FTAs). The measure affected the light metal’s supply chain, trade flows and premiums.

In May, the Mexican government decided to partially revoke the tariffs for aluminium under HS codes 7601.10.02 (unalloyed aluminium or ingots) and 7601.20.02 (alloyed aluminium such as billet and primary foundry alloys), which now have zero tariff again.

At that time, it was noted that there is no current national production of primary aluminum, and availability in countries with which Mexico has trade agreements is insufficient to satisfy supply for the auto industry, electronics and others.

“The joint production capacity of the United States and Canada is insufficient to cover the demand of the three countries, since only 4 million tonnes are produced [in the region], while [total] demand is 6 million tonnes. It is worth mentioning that these new tariffs open the possibility for prices to go up, as they come only for these countries,” the Mexican aluminium institute IMEDAL said at the time.

ARZYZ also added that this strategic move will reduce tariff risks and increase operational continuity and competitiveness for their clients.

“As a local producer, we reduce the risk of duties and tariff impositions, securing a reliable supply chain for our domestic customers,” the press officer said.

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