Mexican bicycle manufacturer Grupo Mercurio inaugurated its new 500-million-peso (US $25-million) industrial park in San Luis Potosí on Friday.

The 130,000-square-meter site will centralize the company’s operations and promote the creation of a collaborative business cluster for the cycling industry in Mexico.

The park consists of industrial premises for Mercurio Bicycles and Tylsa Pipes and Sheetmetal, as well as a distribution center for bicycle parts and accessories manufacturer Windsor Cycling.

The cluster also includes an assembly plant, repair shop and accessories warehouse for motorcycle manufacturer Trimer del Sureste, or TDS.

The firm plans to grow its operations by 60% with the new facility, as production capacity will increase to 800,000 units per year.

In 2018, Mercurio made 400,000 bicycles for the domestic market and 100,000 for export.

CEO César Ramos said the goal is to propel the creation of a business cluster that serves as a point of reference for the cycling industry in Mexico, as well as to take advantage of the geographical location of San Luis Potosí in order to best serve both the domestic and international markets.

He said that 75% of the plant’s production will be destined for the Mexican market, and the remaining 25% will be for international sales, including the United States, Canada, Europe, and elsewhere in Latin America.

The company already has an established presence in Colombia, Chile and Holland. Founded in 1964 with just 16 employees, Mercurio is considered the most diversified cycling company in Latin America.

Aiming to streamline the manufacturing process, the plant is equipped with the latest technologies for tube manufacturing, laser cutting, die-cast molding, welding and plastic injection.

Grupo Mercurio anticipates that it will increase its sales by 5-10% by the end of 2019 and hopes to raise to 80% the domestic manufacture of parts used by the cycling industry.

Source: Milenio (sp)