SAN LUIS POTOSÍ, MEXICO – Kaga Electronics' factory construction project here will receive a 100 million yen ($660,000) boost from Japan's Ministry of Economy, Trade and Industry as part of its Indo-Pacific and Central-South America Regional Supply Chain Involvement Support Project.

The Indo-Pacific and Central-South America Regional Supply Chain Involvement Support Project is a subsidy scheme implemented by METI to encourage business initiatives that contribute to increasing the resilience of supply chains between Japan and the Indo-Pacific and Central-South America regions.

Kaga announced the Mexico factory in August, and through its subsidiary, Taxan Mexico, aims to strengthen and expand its production base to meet the increasing demand for EMS in Mexico. In addition to meeting an increase in orders from existing customers, the new factory is also designed to attract new customers through the assembly of circuit boards used in air-conditioning equipment for the US market, the company said.

Kaga said it is also planning for a future expansion of its integrated production capability encompassing component molding, sheet metal processing and finished product assembly functions, in addition to current unit assembly and circuit board assembly.

By promoting local and localized production, beginning with the new factory in Mexico, the company said it will reduce transportation times and control logistics costs, as well as contribute to the construction of resilient supply chains for the stable provision of products to the market in collaboration with its customers and suppliers.

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