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From Value One, Spring 2014 No. 44
Coilplus Mexicana, S.A. de C.V.
Service Center Network Precisely Fulfills Requirements
Becoming the Coilplus Group in Name and Fact
Coilplus Mexicana, S.A. de C.V. is a young company that will be three years old this June. The company began operations with a single slitter and a single leveler in the Saltillo area in northern Mexico in June 2011, becoming the Metal One Group's second service center in Mexico.
There are numerous major customers of steel sheet in the northern market, including GM and Chrysler in the automotive sector, and Whirlpool and others manufacturing appliances as well as heating, ventilation, and air conditioning (HVAC) units. While purchasing decisions are mainly made at U.S. headquarters, manufacturing of these goods is frequently transferred to Mexico. Coilplus Mexicana was established to target these kinds of customers seeking supplies of steel.
To respond flexibly to the needs of such customers—which we refer to as "national accounts"—and win out against tough competition, we require multiple processing sites for a good balance within the region to provide uniform services; a centralized contact window at Coilplus, Inc.'s headquarters sales division; and close communications between headquarters and our regional service centers. I am confident that the Coilplus Group fulfills customer requirements in the North American market and has strong service centers equipped with what we need to beat the competition.
Our business volume has steadily increased in tonnage since we were established, and I and my forty-six coworkers battle daily together to achieve our business plan. On March 31 last year, our shareholder changed from Metal One Holdings America, Inc. to Coilplus, Inc. We have been strengthening our operations as a division of Coilplus in name and fact. Using other centers as benchmarks, we have been absorbing expertise accumulated by the group in all areas of service center management, including ways to cut costs and raise sales, productivity, safety, operations efficiency and synergies. We also added another representative to our team in March to strengthen our sales capabilities.
Rapidly Changing Situation with Mills

Local mills such as Ternium and Altos Hornos de Mexico accounted for most general-purpose products in northern Mexico's steel sheet market in the past. There was also a dependence on imported materials from Nucor, Severstal, and ThyssenKrupp Steel USA, LLC (now AM/NS Calvert LLC) in the U.S. for premium products that could not be manufactured domestically.
Localization is accelerating, however. Local manufacturing of premium automotive steel sheet started with POSCO's launch of a continuous galvanizing line (CGL) in 2009, followed by last year's launch of Tenigal S. de R.L. de C.V. by Nippon Steel & Sumitomo Metal Corporation with Ternium S.A. and the commencement of automotive CGL operations. Moreover, we are right in the midst of a battleground on which mill power relationships will change greatly. One example is the announcement that ArcelorMittal and Nippon Steel & Sumitomo Metal would buy ThyssenKrupp Steel USA's Alabama plant. We are moving to strengthen our own competitiveness to respond properly to the changing steel products market and customer requirements.

A view of the plant

Latest Situation in Mexico

According to the World Health Organization, Mexico snatched the crown from the U.S. for the highest world obesity rates in 2013. Checking the Internet, the nation was also first worldwide by a wide margin in carbonated beverage consumption based on data released by Coca-Cola in 2011 at an annual rate of 116 liters per person—six times more than Japan. The government began anti-obesity measures this year, levying an 8 percent tax on high calorie foods and one peso per liter on carbonated beverages.
Perhaps in an effort to remove this stigma, the number of joggers young and old, male and female has abruptly increased recently. Regular roads are opened to runners on Sundays in Monterrey, where I live. I also run to stay in shape and relieve stress, but it is so hard to overcome the appeal of beer and tequila after that.

Everyone running to lose the title of "world's fattest nation"?
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