Following the trade dispute between the United States and China, Japanese manufacturer NSK plans to move production processes to Mexico that it currently carries out in Asia, so it will require to soon open its third plant in Guanajuato, local news outlet Periodico AM recently reported.
The construction of the plant will begin in early 2019 at the Colinas de Leon Industrial Park. This installation will focus on manufacturing bearing parts, particularly spheres.
“The situation with the tariffs will benefit us, because that work was made in China,” said Jesus Javier Garcia, general manager of NSK Mexico.
The plant will be similar to one of the two that NSK already operates in Guanajuato and although the manager did not want to give details about the investment that the project will require, he affirmed that the previous investment was around US$ 101 million.
The new plant will be just one step in an extensive restructuring process, Garcia said. A local production line was previously moved to Poland, but, in return, two more lines are being installed in Guanajuato, one of them is a thermal treatment process.
Another line of products for Japanese automotive supplier Denso imported from Japan, China and Korea, will now also be produced here.
“Every three months a new production line is arriving, the production of all of America is going to concentrate in Mexico,” said the executive, adding that currently NSK produces 35,000 bearings per day, with these expansions output will increase to 80,000, representing a 128% growth.
The company is also part of the NSK Warner joint venture, which operates a plant in Guanajuato that manufactures clutch systems and automatic transmission components.
This plant started with four production and assembly lines and soon the machining process will be added. According to Kazumasa Hasegawa-San, president of NSK Mexico, both the demand for bearings and parts for transmissions will grow 10% in fiscal year 2019.