Railroad sees opportunities in Mexico auto expansion

Jul 20, 2012 | 04:31 PM | Corinna Petry

Tags  Kansas City Southern, Mexico, Mexico auto sector, auto assembly plants, steel plants, steel processing centers, freight traffic, TErnium STeel TEchnologies

CHICAGO — Kansas City Southern executives are looking at several opportunities for freight growth in Mexico and beyond, including billion-dollar steel plants driven by rapidly rising automotive production.

"We are experiencing the ripple effect of automotive (sales and production) growth on our other commodity areas," president and chief executive officer David Starling said during the Kansas City, Mo.-based railroad’s earnings conference call with investors.

Executive vice president of sales and marketing Patrick Ottensmeyer detailed the projected spike in vehicle assembly and its upstream impact on the steel supply chain, highlighting three new Mexican plants currently under construction for Nissan Motor Co., Mazda Motor Corp. and Honda Motor Co. Ltd.....

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