German auto supplier Boge breaks ground for its first Mexican plant
Germany-based automotive supplier Boge Rubber & Plastics Group just broke ground to build its first production plant in Mexico, the company announced in a press release.
The 5,000-square-foot facility in San Luis Potosi, 270 miles northwest of Mexico City, is scheduled to become operational in summer 2017.
The company did not specify what components it would manufacture in Mexico or what customers it will supply its products.
Boge Rubber & Plastics specializes in vibration technology and plastics component production. It created a local subsidiary, Boge Rubber & Plastics México SA de CV, in early 2016.
“As a global player, we are thus supporting our customers who, for the most part, already have their own production facilities in Mexico or are in the process of creating further [production] capacity,” CEO Torsten Bremer said in the statement.
The Mexican automotive industry has grown at an average of 8 percent a year over the past five years, Boge pointed out. By 2020, experts expect it to assemble 5 million light vehicles annually for local and global markets.
“With its location in Mexico, Boge Rubber & Plastics is closing a gap in its production network and also increasing its attractiveness among customers when it comes to awarding global platforms,” Boge added.
Once the new plant is up and running, the group will have 11 production sites in eight countries on four continents, Boge said. It employs 4,000 and has annual sales of about US$ 787.2 million.