• Company: GKN Aerospace
  • Established: 1959
  • Headquarters: Redditch, UK
  • Industry: Aerospace
  • Distribution: Multinational with operations in over 35 countries
  • Established Mexican Operations: 2002

Why Mexico?

Although at the time that GKN wanted to expand aerospace facilities, the labor in China was cheaper and cost was of critical importance, there were two main reasons they chose Mexico:

  1. Having inventory in transit cost money and analysis showed that over the long term, the shorter distance would be more beneficial financially and practically.
  2. A location on or near the U.S./Mexican border would best meet the needs of their Southern California clients.

Why IVEMSA?

The government of Baja California in Mexico introduced GKN to several potential service providers, one of which was IVEMSA. After a comprehensive review, GKN felt that IVEMSA provided the best balance between a good business model and cost and services.

Results

Originally, GKN intended to start as an “incubator” and evolve to a wholly owned entity.  Today, they are still with IVEMSA utilizing the full shelter services package.  As Ardy Narjafian, the General Manager of the Mexicali Plant says, “Eventually we realized that the price we pay IVEMSA vs. the risk and amount we would have invest to create a unique entity is well worth it.  IVEMSA not only has more leverage than we would individually, but working with them saves us a lot of paperwork, and reduces our liability.”

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