HDC Hyundai EP announced the acquisition of GS Caltex's Mexican subsidiary located in the Interpuerto industrial complex in Salinas Victoria, Monterrey, northeastern Mexico, and the formal establishment of a local subsidiary as of August 1.

This acquisition is part of a strategy to expand into global markets and diversify supply chains beyond Asian markets such as India and China. Based on this strategic move, HDC Hyundai EP plans to accelerate its entry into the Americas market, including North America, and further strengthen its position in the global composite materials industry.

The plant covers a total area of 50,000 square meters and has an annual production capacity of 25,000 tons. Of the six production lines, four are designed with a flexible structure capable of cross-producing PP, PE, and engineering plastics, with a focus on producing automotive composite PP.

Interpuerto Monterrey, where the plant is located, is Mexico's largest inland multimodal logistics complex, integrating all logistics infrastructure such as roads, railways, customs, and bonded warehouses into a single cluster, making it a world-class manufacturing and export hub. The opening of the new La Gloria-Colombia highway, adjacent to the KCS and Ferromex rail networks connecting to North America, has significantly improved land export accessibility to Laredo, a border city in Texas, USA. The logistics hub function of Monterrey International Airport is also excellent, making it an optimal location as a production base targeting the North American market.

The Mexican automotive industry continues rapid growth centered on exports to North America. As of 2024, passenger car production reached approximately 3.989 million units, marking an all-time high and a 5.56% increase from the previous year. Mexico is currently evaluated as the world's 4th to 5th largest automobile exporter and is likely to enter the world's top 5 automobile producers by 2025. Domestic sales from January to May this year exceeded 593,000 units, reaching the highest level in eight years, and demand for electric vehicles is rapidly increasing in line with the global electrification trend. EV sales in the North American market increased by about 5% compared to the previous year, and the influx of Chinese models is driving a steep upward curve in the Mexican EV market.

HDC Hyundai EP plans to commence full-scale mass production from early 2026, expanding the supply of composite PP to major clients such as Kia Motors and Japanese and American automakers established in Mexico. Additionally, the company intends to diversify its business scope into the electronics and home appliance sectors following the automotive market.

Furthermore, using the Mexican subsidiary as a base, HDC Hyundai EP aims to diversify its bases into major global regions, including Central and South America and North America, and continuously strengthen its global competitive edge through the development of new products optimized for local markets and a high-value-added materials portfolio.

An HDC Hyundai EP representative stated, "The launch of the Mexican subsidiary will be an important turning point in strengthening our global supply base and expanding our business scope beyond merely securing a production base," adding, "We will continue to enhance our competitiveness in the global market based on a high-performance materials strategy targeting the rapidly evolving mobility industry, including electrification and electronic components, as well as the electrical and electronics sectors."

Popular News