Nova Steel Mexico Invests $37M to Launch Technology Innovation Center in Coahuila

Nova Steel Mexico has invested $37 million to launch the first phase of its Technology Innovation Center, which will benefit its factories in the United States and Canada.
The new plant is strategically located in an area ideal for manufacturing and commerce companies, especially those seeking to exploit nearshoring opportunities and logistical routes in Northern Mexico.

Ramos Arizpe factory will serve as the Technology Innovation Center. Photo: Nova Steel.

By: SiiLA News

03/30/2023

Mexico, a Canadian steel manufacturing company, recently opened its third plant in the Santa Maria Industrial Park in Ramos Arizpe, Coahuila. According to SiiLA Market Analytics, the Canadian steelmaker first opened a plant in Ramos Arizpe in 2016. Since then, Nova Steel has grown significantly, now occupying three industrial warehouses in the Santa Maria Industrial Park. The most recent expansion includes a 16,000 m2 factory devoted exclusively to the manufacturing of metal parts for vehicles.

The most recent Nova Steel factory opening represents an investment of US $37 million, creating 80 new jobs. Since 2016, Nova Steel has invested over US $85 million in Coahuila, creating over 350 new jobs. Additionally, the company announced the new Ramos Arizpe factory will serve as the Technology Innovation Center for its other factories in the United States and Canada.

The highly sought after Santa Maria Industrial Park developed by Davisa, features three Class A industrial properties with a gross leasable area of 47,000 m2. The park's central location in Ramos Arizpe with proximity to main logistics routes that lead to the northern border of the country is ideal for companies looking to take advantage of Nearshoring in Mexico. Ramos Arizpe is an extremely tight industrial submarket as represented by the 99.7% occupancy rate SiiLA recorded in Q4 2022 at the Santa MarinaIndustrial Park.

According to SiiLA, the Santa Marina Industrial Park tenant base is dominated by companies in the steel, vehicle parts, electronics, and metallurgy sectors which make up 75% of the total tenant base. The strategic location of the Ramos Arizpe industrial submarket not only attracted Nova Steel, but also is now home to other competitors in the steel sector, such as Acero Prime and Venture Steel. At the Santa MarinaIndustrial Park, Acero Prime occupies18,600 square meters, and Venture Steel occupies 8,200 square meters.

SiiLA continuously monitors new investments and the development of industrial markets and submarkets. For more information about the commercial real estate market in Mexico, please visit our website or contact us at contacto@siila.com.mx.

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