GKN Driveline has expanded its precision forge in Celaya, the third such operation the company has built there since 1979.
With an additional investment of US$11.5m, the 28,300 square metre forging facility will produce more than 15m forgings annually and will employ 150 workers when fully operational later this year.
Go deeper with GlobalData
“Mexico is a very important growth market for GKN Driveline,” said GKN Driveline chief executive, Andy Reynolds. “We have invested more than US$100m in our Mexican operations since 2005 that has allowed us to better supply our driveline systems and solutions to ten vehicle manufacturers in 16 cities throughout Mexico and the US.”
GKN Driveline established a joint venture in Mexico in 1979 and acquired full ownership of the business in 2005. Today, GKN Driveline employs 1,700 people at three facilities in Mexico.
The company plans to invest a further US$100m during the next three years to expand the operations in Mexico, including the production of new generation CVJ Systems and high technology production cells.
“The reason to celebrate this forge expansion is that it is the next stage of our growth,” said GKN Driveline Mexico managing director, Fidel Otake.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“The forge is the beginning of the process for making CVJ Systems. But this growth is not only about forgings, but also in the machining and assembly plants, where we will continue the growth.
“The capacity for CVJ Systems will increase from 6m in 2011 to 9m in 2013. The workforce too will increase from 1,300 last year to 1,700 this year in GKN Driveline in Mexico”.
