Japanese suppliers in Mexico: New plants built to satisfy OEM demand

Recent developments at Aisan Industry, Asahi Glass, NTN, KYB, Nidec Tosok, and others



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 In Mexico, the volumes of automobile production (excluding large buses and heavy-duty trucks) and exports both hit their record highs between January and September 2014. In terms of figures, production increased by 7.5% year-over-year (y/y) to 2.40 million units and exports by 8.7% y/y to 1.95 million units. Sales increased by 4.5% y/y to 790,000 units, which are hit record levels. Under such circumstances, several Japanese OEMs have started operations at their new plants. Nissan started production at its new plant in November 2013, followed by Mazda in January 2014 and Honda in February 2014. Also in 2015 and later, new plants are expected to be constructed by a joint venture between Nissan and Daimler as well as independently by Audi and BMW.

 Many Japanese parts suppliers are continuously building new plants in Mexico, while some are rapidly expanding their production capacities. Some suppliers expand sales to new customers and add production items.

 This report summarizes Japanese parts suppliers' new plants in Mexico in the ten months to mid-September 2014.

Japanese suppliers Related Reports:
* Thailand (Sep. 2014)
* Indonesia (Jun. 2014), Vietnam, Malaysia, Laos, and Myanmar (Jun. 2014), Europe (Jul. 2014), the U.S. (Apr. 2014)
* China (Part 2): Northern, Northeastern & Southern regions (Mar. 2014),
  China (Part 1): Eastern and Central China (Mar. 2014)
* Latin America (Part 2) (Mar. 2014), Latin America(Part 1) (Mar. 2014),
* India (Sep. 2013)

New plants in Mexico (production items in parentheses)

New plants established independently  Aisan Industry (engine parts), Asahi Glass (windshield glass), Asmo (small motors), Inabata & Co. (plastic compounds), NTN (bearings), Shinano Kenshi (small precision motors), Seiren (interior materials), Sumitomo Electric Sintered Alloy (sintered products), Nidec Tosok (control valves), Mabuchi Motor (small motors), Murakami Corporation (rear view mirrors), and Riken (valve lifters)
New plants established jointly  Shinsho Corporation and Kobe Steel (cold heading steel wires), Topy Industries (steel wheels), and Kitagawa Iron Works and Nippon Steel & Sumikin Bussan (casting)
Production capacity added to sales-only subsidiary  Fukoku (functional components)
Operations started at new plants, followed by additional investment to increase production volume and items  Kayaba Industry (shock absorbers, besides conventional vane pumps for CVTs), DaikyoNishikawa (plastic parts), Tsubakimoto Chain (timing chains), Central Motor Wheel (aluminum wheels), Tohken Thermo Tech (additional heat treatment items), Nishikawa Rubber (body sealing products), Nissin Kogyo (brakes), and Musashi Seimitsu Industry (transmission components, besides conventional engine components)
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