Grupo Industrial Saltillo, S.A.B. de C.V. (GIS), a Mexico-based industrial conglomerate serving the automotive market, with a strong presence in the construction and housewares sectors, announced the consolidation of its three auto parts businesses, CIFUNSA, ACE and INFUN, into one unit named Draxton.
“Effective today, Draxton will be the name of the new consolidated unit and the brand name for all of the unit’s products. Draxton, along with our joint ventures, will serve more than 50 customers in the automotive industry in 6 countries that represent the main markets for the sector,” said the company in a statement.
Draxton thus becomes an important global auto parts manufacturer, which in 2017 posted US$ 608 million sales, excluding joint ventures. The capacity of the new subsidiary will exceed 550,000 tons of iron casting, 10,000 tons of aluminum casting and 15 million machined parts to supply global platforms.
Jose Manuel Arana, Chief Executive Officer of GIS, stated, “The formation of Draxton marks the culmination of a key stage in our globalization strategy. By unifying our original auto parts business, CIFUNSA, with two recent acquisitions ACE and INFUN, we expanded our presence to Europe and Asia. In Draxton, we are capitalizing on synergies, implementing shared best practices, and creating a new global brand in the automotive industry. For GIS, this will be our core business that today generates 70% of the Group’s revenues.”
Draxton and GIS joint ventures will continue to be led by Jorge Rada, Global Director since 2016, who has more than 25 years of experience in the automotive industry. This division consists of more than 4,000 employees, 14 plants and 3 world-class Research & Development centers known globally as Draxton 4 Competitiveness (D4C).
Arana added, “We feel very proud to achieve the integration of our auto parts businesses into Draxton. This new identity will show the strength, capabilities and global presence of our business to our customers. The integration of our talented, multicultural team under one unified identity will allow Draxton to emerge as a global player in the auto industry.”
Grupo Industrial Saltillo manufactures and commercializes auto-parts (iron or aluminum foundry and machining), Construction (water heaters, pipe fittings, ceramic and porcelain coverings) and Houseware (tableware and kitchenware products) sectors.
The company employs 8,000 workers in 25 production units, with operations in Mexico, Spain, the Czech Republic, Poland, Italy, and China; as well as market and distribution presence in the U.S.