China’s leading producer of aluminium alloy bars plans to open a plant in Mexico

China's largest producer of aluminium alloy bars, Innovation New Material Technology, has announced intentions to spend USD197 million in a factory in Mexico. The Shandong province-based parent firm stated that Innovation New Material's Hong Kong subsidiaries, Drayton Management and Gloucester Management, would establish a project business in Mexico responsible for the new factory's investment, building, and management.

The initiative will fully use the local automotive supply chain, boost customer satisfaction, and assist in expanding the business into a worldwide provider of lightweight aluminium alloy materials. The initiative, which is still in its early stages, would generate aluminium alloy materials for autos, according to the company, without providing any additional specifics. According to the company's 2022 financial report, aluminium alloy vehicle components include wheel hubs, battery trays, crash beams, and seats. BMW, Mercedes-Benz, Volkswagen, and Nissan are some of its direct and indirect clients.

This is the second major international project announced by Innovation New Material in the last two months. On June 20, it announced an approximately CNY1.4 billion (USD194 million) investment in Vietnam to develop a factory to make aluminium alloy parts used in 3C (computer, communication, and consumer electronics) for the Southeast Asian market.