EDC lends US$100M to Mexican auto supplier to boost supply chain
EDC said deal with Metalsa is aimed at helping Canadian firms enter company's supply chain with tooling, stamping and fixtures
OTTAWA—Export Development Canada (EDC) has reached a US$100-million financing deal with a Mexico-based auto parts supplier it said is “designed to help open doors for Canadian businesses.”
The deal with Metalsa, S.A de C.V. is aimed at helping Canadian firms enter the company’s supply chain, as it looks for tooling, stamping and fixtures suppliers, as well as prototyping services, for new projects in Mexico and the United States.
Metalsa is a direct supplier for Ford Motor Co., Fiat Chrysler Automobiles N.V. and Toyota Motor Corp.
EDC said the financing will be used for “general corporate purposes,” including growing and extending an existing credit facility that Metalsa has with EDC.
“Our financing for foreign buyers can pay important dividends to Canadian companies,” EDC’s senior vice-president of financing and investment, Carl Burlock, said in a statement.
“Since we began working with Metalsa more than 15 years ago, we’ve seen their Canadian supply increase by more than 800 per cent. That, by any standard, is a good return on EDC’s efforts to introduce new suppliers to Metalsa.”