Siemens (SIEGn.DE) said on Monday it plans to replace some U.S. plastic and steel used at its nine Mexican factories with locally sourced products over the next decade, in a bid to help strengthen businesses in Latin America’s No. 2 economy.
The German trains-to-turbines company said it hopes to spend around 9.3 billion pesos ($497 million) per year on locally sourced products for its Mexican factories by 2026, up from about 6 billion pesos currently.
Siemens’ factories in Mexico produce machinery, low and high voltage equipment for homes and companies, transformers, and motors and blades for turbines.
The company is looking to replace some U.S. plastics products, resins and steel supplies with mainly Mexican supplies, said Marco Aurelio Menezes, Siemens’ chief of procurement and logistics in Mexico.