An international Finnish company announced that it will close its border maquila plant in Nogales, Sonora.
PKC Group, a company that employs about 700 workers in Nogales and makes electronic equipment and wiring for light cars, will move its work operations to Torreón, a city in the Mexican state of Coahuila. The company has some offices and work sites there.
The Nogales maquila is in the industrial park San Carlos, where PKC produces electronics for the American market, its main customer. The company says the move will save it the equivalent of about $2.7 million U.S. and will maximize its production efforts, according to Mexican newspaper reports.
In addition to the wiring-harness company in Nogales, Sonora, PKC also has a sales office in Tucson, according to its website.
Since the 1980s, Nogales has seen a maquila growth that helped turn it from a small town into a dynamic border city with big companies employing thousands, including the Chamberlain Group, Otis Elevator, Walbro and Phillips Avent, among others.
Looking for work in the companies, immigrants from all over Mexico and even Central America have poured into the city.
Though no doubt it will regret the loss of PKC, Nogales remains a maquila powerhouse, with 104 companies calling the city home, said René Moreno, of the Nogales Business Council. He added that the maquilas generate about 37,000 jobs and from October 2013 to the present have added 3,000 positions.
“We have seen over the years that there has been an increase in the industrial activity in Nogales,” Moreno said Friday. “Some companies remain in Nogales while others leave, but the tendency is of growth. Today, the exporting industry is the heart of the economy of Nogales.”