The company owned by Grupo Industrial Saltillo, starts a new era with 14 plants around the world
As result of the global growth of its auto-parts sector, Grupo Industrial Saltillo announced the consolidation of its companies Cifunsa, ACE and Infun under the name of Draxton, concluding a transformation process in the Saltillo plant and starting a new era.
Draxton Saltillo, previously known as Cifunsa in the Coahuila capital is the name of the new consolidated unit that together with co-investments from GIS, serves more than 50 customers of the automotive industry in six countries, which are the main markets from the automotive industry.
“GIS had Cifunsa, which was born in Saltillo and expanded to the Bajio, San Luis Potosi and Irapuato. By the end of 2015, GIS decided to buy a Spanish company named ACE, while at the end of 2016, GIS acquired Infun, but in order to have a new image and that everyone could identify as a single front, instead of having three names, we decided to create a new identity that was not any of the three names, and create an own identity,” said Jorge Rada Garza, general director of Draxton and JV’s in Mexico.
He explains that the brand development process where at the end they concluded that the name will be Draxton, started last year and ended on April 9, when the brand was officially known by customers, the Mexican stock exchange and workers, the new image that establishes a new era within the Grupo Industrial Saltillo.
With more than 4,000 employees around the world and 370 in Saltillo, Draxton has 14 plants distributed in three continents: America, Asia and Europe, being present in Mexico in the industrial cities of Saltillo, San Luis Potosi and Irapuato. In addition, Draxton has at its service world-class Research and Development centers globally known as Draxton 4 Competitiveness (D4C.)
Draxton, dedicates to the manufacture of parts and components for different vehicle systems, especially for the powertrain, for breaks we do brackets, Callister and disks; while for the chassis we manufacture knuckles, clutch plates, flywheels and differential boxes,” said Jorge Rada Garza about the range of products they manufacture.
Regarding the destination of their products, Draxton indirectly exports most of them, serving international customers such as Ford, General Motors, Fiat Chrysler Automobiles, ZF, Continental, Seohan, Mobis, Akebono, among others.
Draxton and JVs have a capacity higher of 550 thousand tons of iron casting, more than 10,000 of aluminum foundry and more than 15 million of mechanized pieces to supply global platforms.
Jose Manuel Arana, general director of GIS, said: “The launching of Draxton sets the end of a fundamental stage in our globalization strategy. By consolidating our original auto-parts business, Cifunsa with the two recent acquisitions ACE and INFUN, we expand our position to Europe and Asia. In Draxton we are capitalizing synergies, by implementing the exchange of better practices and creating a new global brand in the automotive industry. For GIS, this will be the main business, since today it generates 70 % of the Group income.
The global launching of Draxton was held simultaneously in the six countries where it operates: Mexico, Spain, Italy, Poland, Czech Republic and China in internal events with the participation of its more than 4,000 collaborators around the world.
Jose Manuel Arana added: “We are so proud of achieving the integration of our Auto-parts business in Draxton. This new identity maximizes the strength, capacity and global presence of our business to our customers. The integration of our talent and multicultural team under a single identity will allow Draxton to consolidate as a global player within the automotive industry.”
The company informed that will report the results from Draxton as a consolidated from Cifunsa, ACE and Infun and at the same time will continue reporting its results by geographic region, NAFTA, Europe and Asia.
Among the plans in a short and medium term, Draxton directives mentioned that one of the priorities is to grow in the Asian market, particularly in China, country that currently has the strongest automotive Industry.
“Our plan is to continue growing in the automotive industry in the markets we are participating and want to strength our presence, such as Mexico, Europe, but a priority is to increase our presence in China, we mainly would like to grow there, it is the largest automotive market in the world, without forgetting we are participating in America and Europe,” he said.
Ricardo Sandoval Garza, director of institutional affairs from GIS.
Another settled goal is to deepen in the machining process, as although they already dabbles in such method, they seek strengthening that aspect, since casting has always been their strength, but machining will give an added value.
“Here in Mexico and in Europe are growth opportunities and we want to use them, one of the ways is to provide more added value to our products by adding the pieces machining, since our piece is in general casted, but not machined, therefore we are dabbling in that area and for the customer is always better to have a product already finished,” he added.
COMPETITIVE AND QUALIFIED PERSONNEL
As company that was born in the capital of Coahuila, Draxton Saltillo highlights the capacity and competitiveness of the personnel from the southeast region of the State and the advantages of the entity.
“Saltillo has qualified workforce and not only in competences and skills, but in discipline and work. On the other hand, we are surrounded by technical level educational institutions, higher technical and engineering, in addition of having the advantage of being in this area of the country, the automotive industry has establish here in the last decades and that enhances the quality of the workforce in that area,” said Rada Garza.
“The southeast region is privileged for being in a strategic point, being near the border with the United States, having an important railroad, on the other hand it highlights by its work peace,” he added.
A CONSOLIDATED INDUSTRIAL GROUP
Grupo Industrial Saltillo manufactures and markets products for the auto-parts sector (casting and machining in iron and aluminum,) of construction (water heaters, systems for fluids, floors and ceramic coverings conductions) and of homes (kitchen and table items.)
This year Grupo Industrial Saltillo is celebrating its 90th anniversary and Isidro Lopez Zertuche founded GIS, his first company was Cinsa, manufacturing kitchen products, but observing the needs he ventures in manufacturing his own products, first of aluminum and later of pewter. In such manner that Cinsa grew, also grew the needs and the foundry department was born, therefore the opportunity of diversifying and dabbling in the automotive sector with CINSA was present, what we know today as Draxton.
“In 1964 he entered the automotive industry because in that time the Mexican government was seeking to substitute imports, where there was a program to create the national industry and they approached us since we knew how to melt metal and iron, and it was then when we started exploring such branch to substitute imports from the United States and make automobiles here, in a massive way in Mexico and thus we started within the auto-parts business,” said Sandoval Garza.
Grupo Industrial Saltillo gathers the talent of more than 8,000 collaborators in 25 productive unites, with operations in Mexico, Spain, Czech Republic, Poland, Italy and China; as well as the commercial presence and of distribution in the United States.