Mesnac to build rubber & tire machinery factory in Mexico

Shenzhen, China – Tire & rubber machinery major Mesnac is planning to invest $20 million (€19 million) in a manufacturing facility in Mexico to support growing demand in North America.

In a stock exchange filing 11 Dec, the Chinese machinery maker said it aimed to build a production and service base in Leon, Guanajuato under the provisional name WYKO Tire Technology Mexico.

The facility will manufacture equipment for rubber processing as well as other machinery for processing of mechanical parts and components.

The company intends to fund the plant entirely from its own resources and through its subsidiary Mesnac Hong Kong.

The investment, Mesnac said, will enhance the company's ability to “cope with” international trade barriers and serve overseas customers.

This will improve the group's global competitiveness and expand its share of the international market, the filing added.

“Mexico borders the United States and is an important tire production base, which helps the company to be closer to North America,” the company said.

A production and service base will help the company to be closer to the needs of North American customers, it added.

Any risk with this investment, stated Mesnac, is “controllable” and will not adversely affect the company's financial and operating conditions.