The U.S. automotive investment company, Neapco, known for its specialization in machining cardan shafts and half shafts for vehicles, is embarking on a significant expansion in Coahuila. The firm’s clients include many of the world’s top carmakers.
The announcement came from the Governor of Coahuila, Miguel Ángel Riquelme Solís, and Mayor José María Fraustro Siller. Neapco’s expansion project is the 44th for the year’s first half in Coahuila and will see an investment of 59 million dollars generating 150 direct jobs.
Who is Neapco?
Neapco, originally known as the New England Auto Products Corporation, was founded in 1921. Over the years, the company has rooted itself deeply in the democratization of the automobile industry in the United States. The Neapco name was formally adopted in 1924 when the universal joint manufacturing facility was moved to Pottstown, Pennsylvania. Today, Neapco is a trusted partner and leading entity in driveline technology, with a global footprint serving Original Equipment Manufacturers (OEM) and Tier One driveline customers with cutting-edge technology, ingenuity, and flexibility.
The company’s comprehensive technological capabilities in engineering, manufacturing, quality assurance, and logistics are world-class. Equipped with state-of-the-art production and distribution platforms in facilities around the globe, Neapco guarantees consistent quality control and a cost-effective service and supply network. The company is driven by an experienced team of professionals, aided by unmatched financial, technical, and logistical resources, allowing them to adapt quickly to an ever-changing marketplace. With a focus on safety, sustainability, and a culture of excellence, Neapco continues its tradition of exceeding customer expectations and fostering enduring professional partnerships.
Coahuila’s Position in the Global Arena
Governor Solís highlighted the positive implications of this decision, stating, “Today, Coahuila is in the eyes of the whole world, and we will continue working for it. The state’s labor force is a factor to continue promoting and generating employment.” Neapco’s decision to expand its operations in Saltillo and Coahuila, he believes, further strengthens the state’s standing in the global market.
Investment and Job Creation
“Fifty-nine million dollars and more than 150 new quality jobs. This gives us great pleasure and consolidates us as one of the best capitals in the country, one of the safest in Mexico, as well as Coahuila, and gives us the responsibility that, at the end of my government, we will be ready to deliver a solid state,” Solís commented. The governor further emphasized that this is the 44th investment announcement this semester, a state record.
Coahuila’s Growing Automotive Cluster
Coahuila’s growth is not just in numbers but also broadening its horizons in the automotive industry. As Solís shared, “Coahuila is consolidating today within its automotive cluster in two ways: Internal Combustion and Electric.” He also highlighted that the assembly companies would continue producing both types of vehicles for several more years.
Recognizing the Workforce
Praising the efforts of the workers and their contribution to the state, Solís stated, “in Coahuila, employers have the best, the best workers in Mexico, a workforce that is recognized worldwide.” He saluted the workers of Neapco for their great performance, commitment, and loyalty.
Coordinated Efforts and Acknowledgements
The governor expressed his gratitude to Mayor José María Fraustro Siller for his coordination on matters that impact the competitiveness of Coahuila, like security, urban infrastructure, social development, and economic growth. These have collectively consolidated Saltillo as one of the best capitals in Mexico. He also recognized the Mendel family for their role in job generation during the challenging times of the pandemic.
Neapco’s Expansion and the Role of Coahuila’s Labor Force
The local Secretary of Economy, Claudio Bres Garza, noted that if Neapco decided to grow in Coahuila, it would be thanks to the qualified labor force and the security and legal certainty. Meanwhile, Mayor Fraustro noted that Coahuila has been attracting more companies due to its conducive environment for growth and development.
Safety and Effectiveness of Coahuila’s Police Force
Fraustro added that Saltillo had positioned itself as the safest capital city in Mexico, with the third most effective police force and the fifth most reliable. This security adds to the appeal of Coahuila as an investment destination.
Neapco’s Future Plans and Acknowledgement
Guillermo Ramirez, Neapco’s director of operations, highlighted that the announced expansion is geared towards increasing the company’s production capacity and promoting new business. “This announcement would not be possible without the support of the state government and the municipality, who have been a key element in providing what was necessary to make the investment possible,” said the executive.
Global Perspectives on the Investment
Additionally, Robert Lenard, Global Chief Financial Officer, noted the significance of the collaboration, saying that “today is a special day for Neapco and Saltillo because we can see the power that can be formed with the collaboration of the government, the companies, the leadership team and each of the stakeholders.”
Among the dignitaries who joined the Governor in the Presidium for this investment announcement were Arturo Mendel Greunebaum, CEO of Grupo Mencorsa; Scott Kaikofen, Vice President of North American Operations, Drivelines; Eglantina Canales Gutierrez, Secretary of Environment of Coahuila, and Jesus Catillo Mejia, labor advisor of the Confederation of Mexican Workers (CTM) in Coahuila. This ceremony marked a significant milestone in Coahuila’s journey of industrial growth and economic resilience.
This recent investment announcement in Coahuila marks another significant milestone for Neapco, reinforcing its reputation as a leading innovator in the global automotive industry. The $59 million investment highlights Neapco’s commitment to enhancing its state-of-the-art production capabilities and its dedication to driving economic growth in the regions where it operates.
The decision to expand in Coahuila, a state noted for its qualified workforce and legal security, aligns perfectly with Neapco’s ethos of strengthening and maintaining enduring professional partnerships and contributing to the development of the local communities. The 150 direct jobs this expansion is projected to create further attest to Neapco’s people-first approach, placing safety, personal enrichment, and professional development at the core of its business practices.