Electric motor component maker EuroGroup Laminations EGLA.MI said on Friday it would invest 50 million euros ($55 million) to expand its production capacity in Mexico to serve the auto industry.
The Italian company counts Volkswagen among its customers
VOWG_p.DE, Renault RENA.PA, Ford FN, GM GM.N and a large US manufacturer of electric vehicles (EVs) whose identity has not been revealed.
Eurogroup Laminations said in a statement that, as part of the investment announced on Friday, it had built a new factory in the Mexican state of Queretaro, adding to facilities it already had in that state.
The Milan-based group, which specializes in stators and rotors, two essential components of electric motors and generators, has seven factories in Italy, while its overseas facilities also include sites in China and the United States.
Managing Director Marco Arduini said the new investment would help the company increase its production capacity for the fast-growing North American electric vehicle market, which has already secured orders worth 3 .5 billion euros for the period 2024-2028.
EuroGroup Laminations’ total order book for the automotive sector stood at a record €6.4 billion in October last year, the company said.
(1 dollar = 0.9140 euros)