Chinese company Yongmaotai Automotive Technology has announced an investment of around US $63 million to build an auto parts plant in the northern border state of Coahuila.
The Chinese news outlet Yicai Global first reported the planned investment in July, saying that Yongmaotai had announced its intention to spend 450 million Chinese yuan (US $63.1 million) on a new factory in Mexico in order to “mitigate the impact of shifting global trade policies on its European and U.S. customers’ supply chains.”
Yicai Global said that Yongmaotai, a Shanghai-based company that specializes in the production of aluminum auto parts, announced that its two Singaporean units would jointly set up “a Mexican project company” to invest in the new plant and oversee its construction and operations.
Yongmaotai said that the factory would likely take two years to build.
In September, the Mexican Chamber of Commerce in China (MEXCHAM) described the planned project as “a smart manufacturing base for automotive parts in Mexico.”
MEXCHAM said that the project is located in Coahuila, but didn’t specify where in the state.
It said that the plant will have “a planned annual production capacity of 25 million lightweight automotive parts, including turbocharger housings.”
MEXCHAM also said that “the construction period is expected to be two years, with production set to begin in the second quarter of 2027.”
