Korean die casting products manufacturer Kodaco unveiled a US$9.4-million investment plan for its Mexican subsidiary MKDC de México to improve productivity and accelerate its growth, the company announced to local media in Seoul.
Company executives affirmed that, a year and a half after officially starting operations in the state of Coahuila, the plant has had significant results, since in addition to consolidating its commercial relationship with Hyundai and KIA, Kodaco has added OEMs as General Motors and Tesla, as well as Tier 1 suppliers such as Magneti Marelli to its client portfolio.
With the latter, said CEO Chung Soo Chung, an agreement was recently reached to increase the volume of orders. Additionally, the company has active discussions with BorgWarner, American Axle and Valeo.
The manager acknowledged that much of the growth expected in the region during the next few years is due to the new rules of the trade agreement between the United States, Mexico and Canada (USMCA) which stipulates that the regional content of vehicles manufactured in North America should increase in the coming years.