Sherbrooke, Que. firm secures $4 million from trade financier
OTTAWA—Quebec auto parts supplier Exo-s is going where the action is. With $4 million in backing from Export Development Canada, the company, which manufactures molded plastic parts, is moving into Mexico.
Using some of the funds to acquire Mexican competitor Hudson Gardens, Exo-s plans to leverage the company’s strategic position south of the U.S. border to increase its presence in the major automakers’ supply chains.
“It made sense for our company to expand production into Mexico because that’s where our main automotive customers—like General Motors and Chrysler—are growing their operations,” Daniel Denault, the company’s CFO, said. “Being located down the street from our customers simply puts us in a better position to win contracts and build relationships.”
The company said a recent contract win shows the acquisition is already paying off. And while the deal means more business for the company’s new Mexican operation, it will also translate into new order for the company’s plants in the U.S. and Canada, Denault said.
From the EDC’s perspective, the financing was a chance to help a Canadian company work its way into the complex global auto supply chain.
“EDC’s financing for Exo-s allows them to be closer to their customers in order to more readily capitalize on these opportunities,” Carl Burlock, senior vice-president of Financing and Investment with the EDC, said “As a result, the entire company grows, both internationally and here at home.”