COVID-19 attracts investment to Mexico

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MEXICO — The closure of Asian plants due to the pandemic COVID-19 depleted countries' manufacturing and supply capacity, which combined with Canada's approval of the USMCA, motivated companies around the world to accelerate changes in their supply chains to become less dependent on the Asian nation, turning Mexico into an attractive place to invest.

David Lee, chief financial officer of Motorcarparts of America, explained that the company increased its investments through a quick conversion of its production lines in Mexico to absorb what they were doing in China.

"We realized the benefits of expanding our operations in Mexico expecting revenue growth from new and existing product lines," he noted.

For its part, the toy manufacturer Spin Master considers Mexico as one of the most attractive places to invest as well as a nation able to respond to global demand for products in the face of the COVID-19 contingency.

“We are expanding our sourcing and procurement activities outside of China with new manufacturing capabilities in Vietnam, Mexico and India,” said the company in a statement.

Source: El Financiero