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Japan Seiko Co., Ltd. announced that it will establish a manufacturing subsidiary in Mexico.
In order to adapt to the increasing production of Mexican cars and to meet the growing car sales in the North American free trade zone markets of the United States, Canada and Mexico, Japan Seiko decided to establish a manufacturing subsidiary in Mexico.
The new company will be located in Guanajuato, Mexico, under the name NSK Manufacturing Co., Ltd. (NSKBearingsManufacturingMexicoS.A.de.C.V.). After the operation, it will focus on the manufacture and sales of automotive bearings. Seiko Co., Ltd. Senior Vice President Steven Beckman will be responsible for the business of the Mexican subsidiary.
In addition, Seiko Japan will invest US$70 million to build a new factory, which will occupy an area of ​​100,000 square meters. The construction area of ​​the first-phase project will be close to 13,000 square meters. The plant is expected to start production in the spring of 2014.
The establishment of a subsidiary in Mexico will help Nippon Seiko provide local customers with more timely supply of automotive bearing products, increase production capacity in North America, and expand the auto parts business in North America. In addition, Seiko Japan also hopes to address the issue of exchange rate fluctuations by expanding production capacity in North America.