A company owned by US-based Mat Holdings will invest MXN 1.2 billion ($70 million), in the construction of two plants in the central state of Hidalgo, Mexico, the state government reported in a statement.
"The first plant will be focused on the casting of brake drums and the other plant on machining for parts in the automotive sector," said the Hidalgo government, citing the head of the Ministry of Economic Development (SEDECO), Carlos Henkel Escorza.
The investment will be made by the subsidiary of Mat Holdings, the company Mincer HD, and will be installed in the city of Mineral de la Reforma, located 10 kilometers or 6.5 miles south of Pachuca, the state capital.
Mincer HD already has operations in the central state of Mexico, in the city of Ecatepec, where it also manufactures auto parts, particularly for brake systems for the automotive industry.