Julio C. Villarreal G.
Chairman and CEO

CEO Message

At Villacero we work for a better life and a better future. The strength, flexibility, and durability of our products are key attributes that allow the mass production of a wide array of goods that shape our way of life. Those very same features are also crucial in creating the infrastructure and machinery that shape our world.

Fifty years ago, we set the foundations for the company Villacero is today. The values that define us -Quality, Innovation, Leadership, and Social and Environmental Responsibility- allowed us to become the the largest distributor of steel products in Mexico.

 

2006 represented a milestone for Villacero. We leverage on the results of our growth strategy implemented over 50 years to consolidate our leading position in Mexico’s steel marketing and distribution business. Last December, Villacero reached an agreement to establish a strategic alliance with Arcelor Mittal, the global leader of the industry, that includes the formation of a commercial joint venture which will focus on the distribution and marketing of long products in Mexico and the Southwestern U.S.

 

This joint venture will capitalize on Villacero’s existing commercial network covering Mexico and NAFTA in order to market Arcelor Mittal’s and Villacero’s products within the region. In addition, our manufacturing plants, our distribution facilities, our service centers and our logistics services operations will rely on a series of long term supply agreements for the provision of long and flat steel products that will bolster the company's competitive advantages in the Mexican steel markets.

 

Our next immediate goal is the consolidation of Villacero in the NAFTA steel trading and servicing markets. The profound changes in the competitive environment of the last few years call for new, innovative plans, to strengthen our competitive capabilities, ensuring Villacero's prominence as a player at the global stage.

 

We are ready to face the challenges posed by globalization. Our strategic partnerships together with our domestic distribution and manufacturing networks ensure reliable and competitive supply of steel products.

 

The road ahead promises intense competition, industry consolidation, and recurring shortages of raw materials. Few will survive the new competitive environment. The steps taken in the last few months have favorably positioned Villacero to become a key player in a global steel network. As we look forward into the future, we are confident that we have the means and the vision to continue achieving our goals.

 

Julio C. Villarreal G.
Chairman and CEO