Sunday, May 19, 2024

Guanajuato governor’s Asia tour bears fruit with investment deals

As Mexico continues to grow as a hotspot for nearshoring by manufacturers, some Mexican politicians have gone on tour to attract investment to their states. This week, Guanajuato Governor Diego Sinhue Rodríguez visited Asia and announced some significant investments planned for the Bajío state. 

NTT Data

“We’ve started our business trip in Japan with some great news for Guanajuato,” Governor Rodríguez shared on the X social media platform. “The global technology leader NTT Data has chosen León, Guanajuato, to expand its operations.”

Guanajuato, mexico Governor Diego Sinhue Rodríguez at NTT headquarters in Japan
Governor Rodríguez at a meeting at NTT headquarters in Japan. (Diego Sinhue Rodríguez Vallejo/X)

NTT Data is a multinational technology consulting and services company based in Tokyo, Japan, with operations in over 50 countries. The company already operates in León. 

While neither the government nor the company shared details about the amount of the investment, it will reportedly focus on creating specialized tools for the telecommunications, banking and insurance sectors in the state, creating some 500 jobs for engineers specialized in technological development.

Nippon Steel Trading

Governor Rodríguez also confirmed on his X account that Nippon Steel Trading will invest US $71 million in a factory in Apaseo el Grande, Guanajuato that is already under construction.

According to a company statement, “the factory will become a crucial supply base for meeting the increasing demand for electric vehicles in North America.” It will specialize in processing and selling electrical steel sheets.

The new plant aims to achieve an annual production of 120,000 tons of steel and is expected to create 200 direct jobs. It will start operations in April 2025.

Nippon Steel Corporation is Japan’s largest steel manufacturer and one of the world’s leading steel producers, with operations in 15 countries. In December, it announced an agreement to buy American-owned US Steel for US $14.9 billion. On Wednesday, however, Reuters reported that U.S. President Joe Biden will express concerns about the planned buyout, which is projected to be finalized in the second or third quarter of this year. 

Nippon Steel executives at a March 7 meeting with Governor Rodríguez. (Diego Sinhue Rodríguez Vallejo/X)

IKD

The Chinese automotive aluminum parts casting supplier IKD will invest US $178.2 million in Guanajuato, creating some 1,000 jobs, according to Rodríguez.

IKD produces and sells high-precision aluminum alloy castings for automobiles, including for electric vehicles (EVs). Neither the company nor the Guanajuato government has provided any additional information regarding how the investment will be utilized. 

However, according to the news site Cluster Industrial, the investment will likely be allocated to the construction of a new plant, based on reports that a 30,000-square-meter space is currently being built next to the existing IKD México plant in Irapuato. 

Yusei Holdings

Yusei Holdings, a Japanese company that specializes in plastic injection for the automotive industry, is another that announced an investment in Guanajuato. The company says it will build a US $84 million plant — though the location is not yet confirmed — and Rodríguez said it will create 500 jobs in the state. 

The company started operations in Querétaro in 2019, and some of its main clients include Toyota, Volkswagen, Ford, Nissan, Honda, Mercedes Benz, Buick, Audi, BMW, Tesla and Volvo.  

Globally, Yusei Holdings also manufactures and trades molds and plastic components, offering assembly and processing services.

With reports from El Universal, Cluster Industrial, La Silla Rota and Periódico Correo

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