Xusheng Group Assigns US$260 million Contract to Saltillo Plant

Xusheng Automotive Precision Technology, an aluminum alloy auto parts manufacturer based in China, announced that it has received a purchase order worth close to US$260 million for a period of five years, whose production will come from its plant located in Saltillo, Coahuila.

The company said the Mexican manufacturing site, whose construction began in September 2023, will produce seven types of parts for an electric vehicle platform still under development.

The company, based in the port of Ningbo, added that the plant to which it allocated an investment of US$$276 million is already in testing phase and will be its largest production center outside China.

Xusheng reported that the parts are destined for a “well-known traditional North American automaker”, but declined to identify the customer by name.

The plant is located in the Alianza Derramadero industrial park and, according to state authorities, will employ 1,200 workers once it is operating at 100% of its installed capacity.

Local press reports indicate that, once consolidated, the production center will have an area of 18,000 square meters where it will house casting, extrusion, die casting and machining processes.

Xusheng specializes in the production of suspension, powertrain and battery compartment parts. The company has been part of Tesla's supply chain in China since 2013, which has opened doors to other customers such as Mercedes-Benz, BMW, Volkswagen, Stellantis, BYD, Great Wall, Geely, NIO, XPeng, Leapmotor, Rivian, Lucid and Polaris.