France-based auto supplier Delfingen has expanded its global production footprint with a new manufacturing site in the Caribbean state of Nicaragua.
The opening of the new plant, which will be specialised in the manufacturing of automotive wire harness protection solutions, is scheduled for the first quarter of 2018.
The site, near the city of Leon in Nicaragua, will also feature an advanced logistics centre, which according to the French company will allow for more flexible local customer services in the region.
The move is part of Delfingen’s strategy to be closer to its customers and will reinforce its production and logistics capacities in Central America, which it described as “a high potential area for the automotive industry”.
Geographical proximity to a key market, cheap labour and good quality products have made Central American states an investment hotspot for the automotive sector and its supporting industries in recent years.
According to Reuters, Mexico, another Central American state which mainly exports to the US, is now the fourth-largest exporter for the automotive industry, after Germany, Japan and South Korea, with leading manufacturers such as Nissan, Honda and Ford putting in investment there.