Future investment in Mexico by the German industrial firm Thyssenkrupp is in doubt, its CEO said Thursday, citing concerns about United States trade policies.
The company manufactures automotive parts for the North American market, but U.S. President Donald Trump’s threats to impose import tariffs has triggered concerns among companies with investments in Mexico.
“We are watching quite carefully what the result of the Trump administration will be, said CEO Heinrich Hiesinger in a conference call with analysts.
He said current investments in its two auto parts plants in Mexico were fully covered by orders from auto makers.
Thyssenkrupp announced last June it was investing about US $160 million in a new plant in San Miguel de Allende, Guanajuato, creating as many as 750 jobs.
“Mexico plays a central role in the expansion of our auto components business,” said Karsten Kroos, CEO of the San Miguel facility, at the time.
“Our investment programs there are a key part of our growth and regionalization strategy. On completion of the new components site in San Miguel de Allende we will more than double the size of our production network in Mexico to altogether eight production sites in just a few years.”
Source: Reuters (en)