Mexico plans for construction of aluminum plant

Plans are underway for the construction of a new plant in Mexico that will manufacture aluminum sheets for the automobile industry, according to an online report by Mexico Now. The publication says the new plant is a result of an increased demand for aluminum from Mexico as a result of the positive momentum to ratify the United States-Mexico-Canada Agreement (USMCA).

The plant would involve a $1.5 billion investment in Mexico, according to the report. Fernando Garcia, president of the Mexico-based IMEDAL, told Mexico Now that though a location has not been decided, possible locations could be Hidalgo, Querétaro or San Luis Potosí, Central Mexico.

Garcia noted that the new plant would lead to economic growth in Mexico and the creation of 800 to 1,200 jobs to manage the plant. The plant is expected to begin operations in 2022, he said.

In addition, Mexico is investing in $15 million to build a classroom to teach and train a new workforce specialized engineers, according to another Mexico Now report, with a goal to advance the country as one of the leading producers of automobile parts for electric vehicles.

Garcia also noted that while the leading material of auto parts is steel, the Mexican automobile industry predicts an increase of demand for aluminum to manufacture lighter electric vehicles.

"Since material coming from the region will be a need, interest in having local suppliers will become a need as well," Garcia told Mexico Now.