BRP To Increase Off-Road Vehicle Manufacturing In Mexico
By Chad Elmore06 July 2020
BRP announced that it is increasing its manufacturing capacity with the construction of a new facility in Mexico to meet demand for its off-road vehicles (ORVs) business.
The company said the expansion of its production facilities is intended to help keep pace with the increased demand for Can-Am side-by-side vehicles (SSVs) experienced in recent years. After a temporary slowdown due to COVID-19, retail sales went up by over 35% in May, compared to the previous year, and the trend continued in June.
“Despite the pandemic, demand for our products has remained strong, and even surpassed last year’s figures for the same period,” said José Boisjoli, President and CEO, Bombardier Recreational Products Inc., Valcourt, Quebec, Canada. “Our continued innovation and steady growth in SSVs make this additional capacity necessary to meet our goal of achieving 30% market share.”
The planned facility will be located in Juárez and represents an investment of an estimated CA$185 million and could result in the creation of up to 1000 permanent jobs. BRP’s total capital expenditure for FY21 is now expected to be in a range of CA$275 million to CA$300 million.
Site planning and construction are scheduled to begin within the next months, and the plant is expected to be ready for operation by Fall 2021. This new plant, combined with the company’s two off-road manufacturing facilities in Juárez, is expected to create positive operational synergies and efficiencies.