Nemak

Nemak, S.A.B. de C.V.

Company type	Public
Traded as	BMV: NEMAK A
Industry	Auto Parts Manufacturing
Founded	1879
Headquarters	Monterrey , Nuevo León
Area served	Worldwide
Key people	Armando Garza (Chairman) Armando Tamez (CEO)
Products	engine blocks, cylinder heads, transmission components, EV battery and motor housings
Revenue	US$ 4.6 billion (2014)
Net income	US$ 405 million (2014)
Total assets	US$ 4.0 million (2014)
Number of employees	20,000
Parent	Alfa
Website	www.nemak.com

Nemak, S.A.B. de C.V., known as Nemak, is a global automotive parts manufacturing company headquartered in García, Nuevo León, a municipality next to the City of Monterrey, Nuevo León, México. The company manufactures a wide range of automotive parts and systems with primary focus on aluminum auto parts, mainly engine blocks, cylinder heads, and transmission components. It is a Tier 1 supplier to major OEMs and is among the 60 largest auto industry suppliers worldwide.^[1]

In 2012, the company acquired Wisconsin-based J.L. French Automotive Castings for $215 million.^[2][3]

Nemak reported sales of $4.3 billion for 2016^[4] and has more than 36 manufacturing plants that employ more than 21,000 people in 16 countries.^[5] It has more than 110 patents and conducts R&D in 5 centers. More than 90% of the sales volume was supplied to the 8 largest automotive manufacturers: Ford, General Motors, Fiat-Chrysler, Volkswagen Group, Hyundai-Kia, BMW, Renault-Nissan and Daimler-Benz.^[6] Its installed capacity is mainly in North America, where the company has 10 plants in Mexico, 6 in the United States, and 1 in Canada. The remaining plants are located in Europe, in Austria, Czech Republic, Germany, Hungary, Russia, Slovakia, Spain, and Poland; in South America, in Argentina and Brazil; and in Asia, in China and India.

Nemak is a subsidiary of the Mexican industrial conglomerate Alfa, which holds 75.24% of Nemak shares, while Ford Motor Co. holds 5.45% of the shares and the remaining 19.31% are public shares offered in the BMV.^[7]

In early 2015, Nemak´s parent company, Alfa, announced it may hold an initial public offering to list Nemak in the Mexican Stock Exchange as soon as June, as a strong U.S. dollar boosts the value of the division’s assets.^[8]

In 2021, Nemak was awarded a contract with Tesla and expanded its manufacturing facilities in Sheboygan, Wisconsin.^[9][10] The company had previously turned down a request from Tesla in 2018.^[11]

References

1. Top 100 Global OEM auto parts suppliers. AutoNews
2. "J.L. French acquired for $215 million". Milwaukee Business Journal. June 29, 2012. Retrieved 20 April 2022.
3. "Sheboygan's J.L. French to be sold to Mexican company". Milwaukee Journal Sentinel. April 12, 2012. Retrieved 20 April 2022.
4. Alfa 4Q14 Report
5. Nemak 2014 Annual Report
6. Nemak 2014 Annual Report
7. Nemak Shareholder Structure
8. Mexico’s Alfa Sees Nemak IPO as Soon as June on Dollar Gain. Bloomberg
9. "Nemak lands Tesla contract, 53 new jobs created". WKTS. September 20, 2021. Retrieved 20 April 2022.
10. "Nemak updating Gateway Drive warehouse for new contract". The Sheboygan Sun. August 10, 2021. Retrieved 20 April 2022.
11. "Elon Musk's Lofty Tesla Goals Made This Supplier Recoil at Risk". Bloomberg. September 6, 2018. Retrieved 20 April 2022.