Nexteer seeks to relocate Chinese suppliers to Mexico

Nexteer seeks to relocate Chinese suppliers to Mexico

MEXICO - In a strategy aimed at strengthening its automotive supply chain and promoting economic growth in the country, Nexteer Automotive Mexico has announced its plan to relocate 13 metal-mechanical suppliers from China to Mexico over the next two years.

Abiel Villarreal, Vice President and COO of Nexteer Automotive Mexico, highlighted the importance of this initiative that seeks to foster stronger and more efficient business relationships.

'We had a meeting with all our suppliers inviting them to come to Mexico, we have many suppliers in China, as we have a global presence we have many suppliers in China, we are even inviting them here', Villarreal pointed out.

The company is particularly interested in attracting Tier 2 or Tier 3 suppliers, given their continued growth in demand from assemblers. Villarreal noted that while they were able to relocate two suppliers from Asia in 2023, the ambitious goal is to reach 13 additional suppliers in the next two years.

Nexteer Automotive Mexico has been collaborating with state clusters to facilitate the linkage with companies already established in the country, conducting a specialized search for suppliers that fit the needs of the company, which already has five plants in Mexico, three of which are located in Querétaro and two in Ciudad Juárez, employing 3,200 workers, of which 2,100 are in the state of Querétaro.

It is worth mentioning that during March, the company laid the first stone for its new Technical Center in El Marqués, which will serve to validate a production line, generating 400 jobs by 2026 and an investment of US$20 million of private capital.