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International Automotive Components (IAC) has inaugurated its new Arteaga, Mexico, manufacturing operation on 26 May.

With the addition of the new 90,000-square-foot (8,361-square-metre) Arteaga operation, the company now has eight manufacturing sites in Mexico, increasing its footprint to 81 manufacturing locations in 19 countries. IAC is also supported by a ninth country location, a customer technical and engineering centre located in Toluca, Mexico.

The new IAC Arteaga plant, which currently employs approximately 320 people, will serve as a dedicated centre of expertise for compression bonded cut, sew and wrapped highly crafted automotive interior components, including instrument panels, door panels, floor consoles, armrests and bolsters.

“Our new Arteaga operation joins 17 other IAC cut-and-sew locations on four continents, all of which are in place to support the industry shift toward more highly crafted interiors,” said IAC president and chief executive officer James Kamsickas. “The shift has been driven by OEM demand for brand differentiation and consumer demand for luxurious appearance and improved haptic response in their vehicle interiors.”

Including the new Arteaga plant and three other recent company plant expansions in Mexico, IAC is in position to support the automotive industry’s continued growth in the country. According to a 2015 IHS forecast, approximately 25% of the world’s additional new vehicle production is expected to take place in Mexico over the next five years, equating to approximately 5m vehicles per year above current production by 2021.

With the new Arteaga operation, IAC has inaugurated 10 facilities in seven countries in the past 20 months, increasing its total number of locations to 101.

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By GlobalData