Published On: September 2nd, 2021Categories: Trade Ideas
While the auto industry is migrating towards aluminium instead of steel, the demand for aluminium parts and structural components is set to rise. We think that the Mexican car parts maker NEMAK is well-positioned to take advantage of this shift. Moreover, its fast development in electric vehicle components, especially in battery housings, is offering competitive advantages versus its main peers. Following a commitment to address environmental challenges, NEMAK became the first LatAm company to issue sustainability-linked notes in more than one currency (EUR and USD). We recommend buying these bonds.