Export Development Canada (EDC) has extended $100m finance to Mexico-based OEM producer Metalsa for $100m to improve its supply chain in the country.
Metalsa is an OEM producer of automotive structures such as chassis, suspension, cradles and stamping and EDC is provides financing, insurance and bonding products for small Canadian companies.
The financing is expected to extend and upsize Metalsa's existing credit facility with EDC and it is likely to facilitate Canadian businesses to enter Metalsa's supply chain.
For Canada, Mexico is a strategic market and the country is also a market of corporate priority for EDC.
EDC Financing and Investment senior vice-president Carl Burlock said: "Our financing for foreign buyers can pay important dividends to Canadian companies.
"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."
