Nemak invests US$ 60 million to meet new transmissions specifications
Lightweight automotive supplier Nemak prepares for new business awards going into production in the next year, company officials revealed in recent days.
The company, which is based in Monterrey, Mexico, develops and manufactures aluminum powertrain and body structure components.
Nemak executive Tom Bair said the company has been awarded more than 20 new programs that are set to begin production in the next year.
“We’re bringing in a lot of state of the art equipment that needs to be maintained properly to ensure longevity, so we believe these are the right steps to invest in our future.”
Bair said the company’s growth is being driven by strength in the automotive industry combined with a shift in transmissions among OEMs.
Major automakers are changing from four to six speed transmissions to ones with eight, nine or 10 speeds, Bair said.
That shift has resulted in increased capital investments for Nemak as machining lines that worked 10 or 15 years ago no longer meet customer specifications.
As a result, the company is investing US$ 60 million in several facilities between 2016 and 2017.