Sumikin Bussan to Invest Automobile Parts Plant in Mexico

Sumikin Bussan, Japanese major steel business warehouse, announced on Friday the firm invests automobile parts plant in Mexico which is established by Kitagawa Iron Works. Kitagawa Iron Works and Sumikin Bussan have 75% and 25% of the share, and both companies establish Kitagawa Mexico in Agaskarientes province, Mexico, in February 2012. Kitagawa Mexico produces and sells casting products, such as engine parts, and will start the operation in April 2013. Total investment is .5 billion yen for the establishment. Sumikin Bussan aims to acquire the demand by the investment when automobile output is expected to expand in North and South America.

The capital fund is US$ 25 million. Kitagawa Mexico starts procession of casting products and will start casting from 2015, which aims to increase the sales to 3 billion yen in 2015.

Kitagawa Iron Works was established in 1918, and produces casting products for engine, transmission, exhaust system and underbody, and has plant in Japan and Thailand.

Sumikin Bussan bought headrest maker, Productos Doblados de Mexico in Mexico in January 2012, and will expand the business by exertion of synergy with the plant in Mexico.