Attracted by Mexico's highly attractive business environment,Linamar,a Canadian company specializing in precision engineered parts for the car industry,has said it will invest $120 million in plants in the states of Coahuila,Durango and Tamaulipas.
On Friday,at a press conference in Canada with Linamar's CEO,Linda S. Hasenfratz,Mexican President,Felipe Caldreón,said the investment will create some 3,000 jobs,both directly and indirectly.
Mexico was recently named the most affordable place in the world to do business by international financial experts,KPMG.
In what the Mexican government calls a "reconfiguration of the global manufacturing industry",they say 125 international companies have now transferred manufacturing bases to Mexico,where lower costs make exports more competitive.
The Mexican President said,"In just the month of April,we saw Mexican exports to the world grow almost 90% year-on-year".
Calderón went on to highlight Mexican expertise in the automotive sector,one of the factors that attracted Linamar,who manufacture metallic components and systems for the vehicle industry,as well as energy and mobile industrial markets.
Following financial results that beat expectations earlier in the month,Linamar's CEO stressed that the decision to invest in Mexico made sound business sense.
Linamar is listed on the Toronto Stock Exchange where their shares closed at at a $19.27 CAD on Friday. The company has a total market capitalization of $1,246.81 million.