Nemak, the metalcasting group that manufactures aluminum cylinder heads, engine blocks, transmission parts, and automotive structural components at 34 locations in 14 countries, is planning a new plant in northeastern Mexico. The $125-million, high-pressure diecasting operation will be the seventh plant for Nemak at a complex at García, Nuevo León.
No schedule was announced for the project, though Nemak stated the plant will feature “advanced manufacturing processes and technologies of the industry already existing in some of Nemak’s plants in North America and Europe.”
The company said the new plant would employ up to 500 workers.
The availability of technical and human resources at that site, and the ability to integrate the operation with the operations already there, were “key drivers” in the site selection, according to a statement.
Mexico is the site of several ongoing metalcasting projects, including onw announced recently by Brembo and one started up by Federal-Mogul Powertrain. In the past year General Motors and Grede Foundries announced expansion plans for their Mexican foundries, too.
“This facility represents a key development in the execution of our strategy,” stated Nemak CEO Armando Tamez. “It will strengthen our capacity to produce core powertrain components like engine blocks and complex transmission cases. Also, we will have the capacity to produce structural components, which have become an emerging source for the OEMs to reduce vehicle weight and comply with more stringent regulations on fuel efficiency and CO2 emissions.”
Nemak already is a significant supplier of castings to the North American automotive supply chain, but recently it has invested extensively in other markets, too. In 2014, it assigned $370 million to investments at operations in China, Germany, Russia, and India.