Spain-based manufacturer Fagor Ederlan plans to build a new plant in San Luis Potosi, central Mexico, for which the company obtained a 15-million-euro credit facility (around US$17 million at current exchange rate), Spanish media reported.
The loan has already been approved by Cofides (Compañía Española de Financiación del Desarrollo), a development bank comprised of public and private funds that supports the internationalization of Spanish companies.
It is worth noting that the Cofides credit represents less than a quarter of the total investment that Fagor Ederlan will allocate to the San Luis Potosí plant, which is valued at 62.8 million euros, or approximately US$ 71.2 million.
The new plant will be dedicated to the production of suspension components, an activity that is already carried out in plants in China and Europe. According to the company, this will be a key project to expand the presence of Fagor Ederlan in North America.
So far it is unknown the number of jobs that will be opened with the new plant, as well as the car manufacturers to which it will provide components.