Coatings and specialty products manufacturer PPG Industries is expanding its manufacturing facility in San Juan del Rio, Mexico. The project will allow PPG to provide more products as demand for its coatings increases. Many of its customers in Mexico are in the automotive, protective, marine, packaging and industrial sectors. The company is adding 100,000 square feet to its existing factory, which will consist of four new buildings. The company will invest over $27 million dollars in the project, which is located in the state of Querétaro.
"This growth project is another important step for PPG's future in Mexico," said Adriana Macouzet, PPG general manager, Latin America North. "It will enhance PPG's capability to serve the country's fast-growing automotive manufacturing market with the latest waterborne and compact process technologies that today's global automotive OEMs are demanding. The expansion enables us to meet the additional demand stemming from rapid growth in recent years by our Mexico-based customers and provide PPG coatings to other local end-use markets."
Opportunities in Querétaro
According to the Global Atlanta, Querétaro is a major state for production in the aerospace industry. It is possible that PPG is providing some of its coatings to the many companies that have begun outsourcing to Querétaro in order to take advantage of the local highly qualified and inexpensive labor force.
Another company that is expanding in Querétaro is Delta TechOps, which performs maintenance operations for Delta Air Lines. The company is building a $55 million facility that will be shared by the Mexican airline company, Aeromexico, according to the Global Atlanta.
The facility is jointly funded, and will operate for the maintenance, repair and overhaul of airplanes. There will be three hangers suitable for holding large aircraft, and the hangers will have a combined floorspace of over 1 million square feet. Engineering crews will be able to work on nine full-size aircraft at the same time.
Mexican President Enrique Peña Nieto presided over the opening ceremony for the plant, which has the full support of the Querétaro government.
"This is a very important day for the aviation industry in Mexico, as these facilities put it at the global forefront and transform it into a leader of the business opportunities that our nation has to offer," said Eduardo Tricio, board chairman at Aeromexico.
Globalization is leading to advancements in the Mexican economy
Those working on the planes will be trained at the Aeronautics University of Querétaro.
According to Global Atlanta, the U.S. state of Georgia is a major force behind the aerospace industry in the U.S., and it shares a connection with Querétaro through Delta Air Lines. Delta operates at the Hartsfield-Jackson Atlanta International Airport, and moves parts between Georgia and Querétaro. Delta Air Line's service arm will try to generate over $1 billion in revenue this year through increased globalization.
According to Walter Heredia, trade representative for the state of Georgia, international investment will ultimately be good for the Mexican Southeast region, where Querétaro is located.
"I think competing is not the right way of seeing it," Heredia told Global Atlanta. "I think working together is the right way of seeing it. Why? Because as some industries grow, you grow also your capabilities, and it's open for innovation."
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