The Chinese business consortium Pao Shang-Roca will invest $45 million in the northern city of Ramos Arizpe, in the Mexican state of Coahuila, to be part of the largest auto parts economy in the country, the local government reported.
“From the Government Palace, we welcome Pao Shang and Roca Principal Holdings, Chinese companies in the automotive industry that arrive in Coahuila,” wrote Manolo Jiménez Salinas, governor of the state on his personal X account (formerly Twitter).
The Ministry of Economy reported separately that the consortium will produce portable generators, washing machines for the industrial sector, chassis parts for automobiles, motorcycle engines and gears.
According to local press reports, the Pao Shang-Roca consortium is a joint venture between the companies Pao Shang and Roca Principal Holdings.
Coahuila is the eighth largest economy in Mexico by its contribution to GDP with 3.8 percent of the total Mexican economy ($1.80 trillion), according to the Mexican System of National Accounts. In terms of Foreign Direct Investment (FDI), it is also the eighth most important with $21.3 billion or 3.8 percent of the $557 billion captured between 2006 and 2023.
Data from the business chamber Industria Nacional de Autopartes (INA) Coahuila is the largest Mexican economy in auto parts with a production of $17.2 billion in the January-November period. In that same period, Mexico manufactured $111.5 billion, making the country the fourth largest producer of auto parts in the world and the largest supplier to the United States.
As SteelOrbis reported, so far this year, Coahuila has received six investment projects, projects related to steel consumption with an investment of $220 million. Yesterday, the arrival of the German company Ziemann Holvrieka was reported, which will invest $20 million to manufacture metal storage tanks for the beverage industry.
In February, American railcar producer FreightCar America expanded its plant with $34 million and Germany's Voss Automotive also expanded its plant with $40 million.
In January, Shanghai Daimay Automotive put its fifth auto parts plant into operation with $50 million; Yura Corporation, from South Korea, announced the expansion of its plant with $35 million, and the Mexican Conduit Rymco will expand its tube plant with $45 million.