SAN LUIS POTOSI, Mexico—German automotive supplier Boge Rubber & Plastics Group has opened a greenfield production plant in San Luis Potosi as part of its bid to expand its global footprint.
The $5.9 million plant, which opened on Oct. 20, will manufacture products including chassis and powertrains, suspension mounts for vibration technology, and plastics components for the automotive industry.
The site, which has room for future expansions, has a production hall with an area of about 61,000 square feet. Of that figure, about 13,000 square feet are dedicated to plastics manufacturing while the rest is for rubber-metal technology.
Over the next few years, the company expects to employ between 150 and 200 at the plant.
Daimler and the VW Group are among the first customers, acccording to Boge, which noted that it had already received orders in "double-digit millions" in annual sales until 2029.
First series deliveries are expected in summer 2018.
With the location in Mexico, Boge said it was getting nearer to its customers, while closing a gap in its production network.
"Nearly all of our customers already have manufacturing facilities in Mexico. With our plant in San Luis Potosi, we are now able to support our top customers," said Boge CEO Torsten Bremer said during the opening speech.
Bremer expects the plant in Mexico to play a "significant strategic role" in the company's global production network.
With the addition of the new facility, Boge runs 11 production sites in eight countries on four continents.