Canadian business becomes first to invest in Mexico under new USMCA trade deal.
As part of the entry into force of the trade agreement between Mexico, Canada and the United States, USMCA (T-MEC in Mexico), the off-road vehicle company Bombardier Recreational Products (BRP) announced that it will build a plant to produce four-wheel vehicles in Ciudad Juárez, Chihuahua.
The investment includes a sum of $136 million US dollars. In addition, this action is expected to generate more than 1,000 permanent jobs in Mexico.
A statement released by the Canadian firm indicates that the expansion of production capacity is focused on keeping up with the growing demand for vehicles known as side-by-side (SSV) Can-Am, with which it has recently experimented.
“Despite the pandemic, demand for our products has remained strong and even exceeded last year’s figures for the same period,” said José Boisjoli, BRP President and CEO. “Our continued innovation and constant growth in SSVs make this additional capacity necessary to meet our goal of achieving a 30% market share,” he added.
Planning and construction of the plant are slated to begin in the coming months, the statement said, “and it is expected to be ready to operate in the fall of 2021. This new plant, combined with the company’s two off-road manufacturing facilities in Juárez, will create positive operational synergies and efficiencies. ”
The Mazatlan Post