25 Million Dollars Invested on Automotive Harness Plant in Nicaragua

By Dialogo
June 16, 2009

The opening of this plant is very good. Could they offer employment opportunities to people from Mexico? Managua, June 15 (EFE).- The German company Dräxlmaier will invest 25 million dollars launching an automotive harness plant in the department (province) of Masaya, southeast Nicaragua, an official source informed today. Members of “PRO Nicaragua,” the official agency of investment promotion in that country, informed at a press conference that a contract between “Free Trade Zone Corporations” and this company had been signed. The plant will start its operations in the first trimester of 2010. The plant, located in the municipality of Nindirí, Masaya, will operate in the free trade zone; and it is expected to create up to 1,000 new jobs in its first phase, and up to 2,000 jobs once the project is completely operational. The signing of this contract was attended by the presidential delegate for Investment, General Álvaro Baltodano (retired), the Financial Director and President of Dräxlmaier for North America, Stefam Bude, and the president of Elëctrica for Dräxlmaier’s Operations in North America, Ulrich Eicheler. Besides, the executive director of the Free Trade Zones National Commission, Alfredo Coronel, the executive director of “PRO Nicaragua,” Javier Chamorro, and German ambassador in Nicaragua, Anna Betina Kern as well as Nindirí’s mayor, Clarisa Vivas Castellón, attended the signing as guests. Pro Nicaragua’s sources informed that Dräxlmaier is an automotive corporation of German origin founded in 1958 and currently employs more than 30,000 people at 49 plants in 18 countries, on four continents. It was also stated that the company manufactures automotive harnesses for clients such as BMW, Mercedes-Benz, Volkswagen, Audi, GM, Porsche, Jaguar, Toyota and Bugatti. “The new plant in Nicaragua will not be an investment to pursue short-term success only. We have obtained excellent projects that will force us to increase the capacity we already have in the area until 2011, and this paved our way to Nicaragua,” executive Stefan Bude said at the press conference. He added that, initially, they are looking to know more about the country, the people, the government support, and of course, how to establish the foundation of the intensive training programs for their future Nicaraguan associates, the basis of the transference of knowledge. "Through all this, we will acquire a formidable base for our development in the following 2 years,” Bude said. "The investment of such a prestigious company like Dräxlmaier demonstrates that Nicaragua is still a highly-competitive country regarding attracting investment," said Javier Chamorro, executive director of Pro Nicaragua.