Mexico’s Grupo Industrial Saltillo (GIS) and Fagor Ederlan plan to invest $52 million to build an auto parts plant, according to media reports this week.
The new plant, which will manufacture steel components for the local automotive industry as well as NAFTA trade partners, and production is expected to commence by 2016.
Under the deal, GIS and auto parts maker Fagor will have a 50 percent stake each in the project. According to media reports, the new plant will be able to produce about 5 million auto parts in five years. The new company’s portfolio will include auto parts for suspension, steering, brakes and powertrain, among other components.
According to estimates from GIS, from 2011 to 2015, Mexico invested $260 million in the automotive industry. The estimate does not consider GIS-Fagor JV project.