Epiroc AB plans to build assembly plant in Mexico
The Swedish company Epiroc AB reported that it plans to build a plant to assemble mining equipment in the city of Zacatecas, Mexico, with an investment of more than US$10 million in about three years.
For the time being, the company has a maintenance workshop and produces certain parts for the same equipment in the city of Zacatecas.
Epiroc AB is a manufacturer of infrastructure and mining equipment and operates production plants mainly in Sweden, the United States, Canada, Australia, China, India, Japan and Germany.
Rodrigo Guzmán, manager of Epiroc’s subway mining business line, reported that the new plant in Mexico is planned because of the company’s sales volume in this country and its manufacturing competitiveness.
This new plant would produce subway mining equipment, a segment in which the company sells units costing between US$300,000 and US$2 million.
In addition, Epiroc AB produces and markets surface mining vehicles costing between US$500,000 and US$7 million.
The company’s competitors in subway mining include Komatsu Ltd., Sandvik AB and Caterpillar.
Epiroc AB
During 2022, the company sold about 150 subway mining equipment in Mexico and expects to place a similar amount there in the current year.
Guzmán said that some 500 Epiroc AB vehicles are active in Mexico. Traditionally, Mexico represents between 3 and 4% of its worldwide sales.
The company includes in its assemblies products on which it bases its technological capacity, such as drilling machines and automation systems.
As the world’s leading producer of silver and 12 other minerals, Mexico’s mining sector represents a growth opportunity for several companies producing related goods and services. The industry grew more than 10% annually from 2017 to 2021.
