The Xusheng group, based in China, recently began the construction of their new die-casting plant, in Coahuila state, Mexico.
The new plant is expected to produce aluminum alloy auto parts meant for the automotive as well as the e-mobility industry. This is as per the information provided by Cluster Industrial. The new plant will be situated at Alianza Derramadero Industrial Park, close to Saltillo.
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The die-casting plant was initially announced in May 2023. It will be the biggest aluminum manufacturing component hub in Mexico. 1,200 job opportunities are expected to be created at the time of its inauguration. According to the information provided by Xusheng in April of 2023, the company claimed that it had planned to make an investment of $276 million (2.02 billion yuan) in five new subsidiaries. These subsidiaries are located in Mexico, Hong Kong, and also the UK.
Expectations from the new die-casting plant
The new plant in Mexico is expected to scale up Xusheng’s commercial activities in Central and North America. It is said that the new subsidiaries are expected to support the construction of the new plant in the Central American country.
During the sod-cutting ceremony, the Xusheng Group’s vice president, Cloud Zhao, was in attendance. Coahuila state Governor Miguel Angel Riquelme Solis said that the state was experiencing high industrial dynamism. According to him, the arrival of new and greater significant investments is expected to unite the state’s supply chain and also diversify capital origins.
The manufacturing industry has long been seen by investors as one of the most viable in the country. As per the information provided by the Ministry of Economy of Mexico, about 36 percent of foreign direct investment inflows were poured into manufacturing. This amounted to approximately $12.7 billion. Also, the investment came above even transportation which held the second place with 15.1 percent ($5.33 billion).
The Chinese company is among many foreign companies that are making investments and setting foot in the Latin American nation.
