Sodecia Announces US$36 Million Investment in Coahuila
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Sodecia Announces US$36 Million Investment in Coahuila

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Rodrigo Andrade By Rodrigo Andrade | Journalist & Industry Analyst - Tue, 10/18/2022 - 16:13

Sodecia Automotive announced a US$36 million investment to increase production capacity at its plant in Ramos Arizpe, Coahuila. With this investment, the company aims to manufacture auto parts for companies such as General Motors (GM) and Tesla, create 200 jobs and increase its product baseline portfolio to meet the demand of North America and expand to South America. 

The investment will increase production capacities by 70 percent, according to Enrique Meza, General Manager, Sodecia Mexico, as reported by Cluster Industrial. He expects that the new production line will be finished in two years. The plant in Ramos Arizpe plays an important role for the company, which arrived in the region 14 years ago. Since then, it expanded its productive capacity from 5,600 to 10,000 assemblies per week for a total of 110,000 units per year, said Meza. 

Ramos Arizpe is an important manufacturing and employment hub and key to Mexico’s electromobility transformation. In September 2022, US automaker GM announced that its newest EV, the Chevrolet Equinox EV, will be produced in Ramos Arizpe. This vehicle aims to compete in the lower-end electric car segment in North America, as reported by MBN. GM will also assemble its crossover vehicle, the Chevrolet Blazer EV 2024, in Ramos Arizpe. GM is finishing its restructuring in Mexico, which represents a US$1 billion investment that will enable the company to assemble EVs in the state. 

“About 70 percent of international trade today involves global value chains (GVCs), as services, raw materials, parts, and components cross borders – often numerous times. Once incorporated into final products they are shipped to consumers all over the world,” according to the OECD. However, some automakers are bringing their suppliers closer following the global supply chain disruptions that continue affecting the industry. Companies are turning to Mexico to supply their North American clients.

Coahuila is becoming one of the most attractive states for private investment and job generation in the country, said Miguel Riquelme, Governor of Coahuila. The state offers numerous education institutions, such as COBAC, CONALEP and CECyTECT. It also has great manufacturing capabilities and a strong automotive cluster.  

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