GIS invests US$30 million in San Luis Potosí
SAN LUIS POTOSI – GIS announces a US$30 million investment for the capacity expansion of its auto parts foundry at its Draxton business in San Luis Potosi to begin operations during the last quarter of 2022.
Draxton, dedicated to the casting and machining of critical auto parts for brake, engine and chassis systems for the global auto parts industry, has operations in six countries on three continents: Europe, Asia and in North America with plants strategically located in central and northern Mexico.
Through a statement, the company announced the construction and expansion of a new nodular iron smelting line at its San Luis Potosí production plant, which will allow it to increase its installed capacity by 30,000 tons per year to reach a global annual smelting capacity of close to 620,000 tons.
The new casting line will focus on the production of calipers and brackets, critical and safety-critical brake system parts that are 100% compatible with hybrid and electric vehicles, allowing Draxton to participate in the electrification of the global automotive industry.
“GIS’s financial strength allows us to finance this expansion of Draxton with our own resources and thus be ready to take advantage of the business opportunities presented by the USMCA agreement for the automotive industry,” said Jorge Rada, Chief Operating Officer of GIS.
GIS also reported that it refinanced the loan contracted for its Evercast foundry and machining business with a cost reduction and a term extension to 2026.
Source: Cluster Industrial