With the idea of expanding its presence in Mexico and developing new generation electric motors, Japanese electric motor manufacturer Nidec announced an investment of $715 million to build a plant.
The novelty was confirmed by the executive president of Nidec in an interview with the Japanese newspaper nikkei This Friday, November 18.
As published by the Japanese media, construction of the plant is expected to begin during 2023, after April, which is when the company’s next fiscal year begins.
Shigenobu Nagamori, CEO of Nidec Corp, said regarding the new investments that the company’s marketing strategy is always to manufacture the products and sell them in the same region, so it is expected that the firm’s idea is to market the engines to electric cars to be produced in Mexico and the United States.
This will allow the incorporation of more labor.
Nidec manufactures a motor for electric vehicles, known as an “e-axle”, that integrates a novel system in the market of this class of impellers.
The company, which is headquartered in Kyoto, is already producing the e-axle in China and a plant in Europe.
According to Nidec’s latest financial report, the idea for its fiscal year beginning in April is to produce 1.2 million units of the e-axle. This is twice the amount planned for this current fiscal year. Chinese demand is the explanation for this growth.
Investments in Mexico by Nidec
Control Techniques, which is part of the Nidec holding, inaugurated a new manufacturing plant in Monterrey last October, which required an investment of almost 20 million dollars.
The new facilities, of more than 12 thousand m2, have three Nidec businesses: in addition to Control Techniques, KB Electronics and Valmark. Commander-C drives are already being manufactured there for the US market.
Nidec reported record quarterly profits for the July-September period in October, good news for the automaker after three straight quarters of poor performance and the departure of some of its most high-profile executives.
Nidec’s second-quarter operating profit rose 16 percent from a year earlier to 51.7 billion yen (about $340 million) while sales rose 27 percent to 590 billion yen.
Nidec’s net profit, meanwhile, jumped a whopping 37 percent (to 45.3 billion yen).
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