Mexico-based Papalotes Felizardo Elizondo Guajardo, better known by its commercial brand Papalotes Steel, began a process of expanding its facilities, purchasing machinery to process new products, including the steel profile for the production of doors and windows that generates sales of $4.2 billion annually, information sources familiar with the expansion process told SteelOrbis.
“It will be invested in production lines. They will enter the production of metal profiles for windows, metal profiles for doors. They will enter the blacksmith profiles business,” the source told SteelOrbis.
The source did not mention the amount of investment, nor how it will be funded to pay for the machinery and expansion of the company.
Industry data, reviewed by SteelOrbis, show that the blacksmith profiles market in Mexico has an estimated value of $4.2 billion annually, a figure that has grown at an average growth rate since the impact of the SARS-CoV-2 pandemic in Mexico. annual of 17.8 percent (2020-2023). Rate that decreases to 4.0 percent annual average when considering the increase in pesos at present value (adjusted to eliminate the inflationary effect).
Industry data shows that among the main players in the metal profiles market for blacksmiths are Prolamsa, RegioPytsa (Regiomontana de Perfiles y Tubos) and Ternium with a market share of 20 percent each.
Other players are Productos LM with an estimated market share of 10 percent and Arco Metal with 5.0 percent. In the short and medium term, Papalote Steel will seek to achieve 5.0 percent of the market.
Another area of opportunity that the company found and in which they will invest is to serve machinery producers, such as agricultural tractors, industrial machinery and railway cars.
“They will go into the one-inch steel plate leveling business. In Mexico, there are very few companies that offer the service of leveling one-inch-thick rolled steel plates,” the source commented.
Another business segment that Papalotes Steel will enter is steel plate leveling. Industry data indicates that one of the main thick plate levelers is Fortacero.
Derived from the expansion in products and services, the company will hire more personnel and expand its facilities to house machinery from Italy and France.
The company has two production plants, the headquarters located in the northern city of General Zuazua, in the Mexican state of Nuevo León (23 miles away from Monterrey, the state capital) and another in the central city of San Cristóbal Tulcingo (very close to the capital of the state of Puebla). The matrix will expand its surface area by 50% from 60,000 to 90,000 square meters of roofed area.