Export Development Canada (EDC) today announced a previously dispersed CAD 4 M in financing for Sherbrooke, Quebec’s Exo-s, a supplier of molded plastic parts primarily for the auto sector.
“We’ve heard from an overwhelming number of Canadian companies about how difficult it is to enter the supply chains of those large global players, where the opportunities are most numerous,” said Carl Burlock, Senior Vice-President, Financing and Investment, EDC. “EDC’s financing for Exo-s allows them to be closer to their customers in order to more readily capitalize on these opportunities. As a result, the entire company grows, both internationally and here at home.”
Part of the financing was used by Exo-s to acquire the assets of Mexican plastics company Hudson Gardens. The remainder will be used to purchase new equipment for a production plant that came as part of the Hudson Gardens acquisition.
“It made sense for our company to expand production into Mexico because that’s where our main automotive customers —like General Motors and Chrysler—are growing their operations,” said Daniel Denault, Chief Financial Officer, Exo-s. “Being located down the street from our customers simply puts us in a better position to win contracts and build relationships.”
“The expansion is already paying off, as we recently won a contract to produce parts for new car platforms being built in Mexico. While some of those parts will come from our facility in Mexico, the new contract also means new orders for our plants in Canada and the U.S., where production will need to increase in order to meet demand,” added Denault.
In addition to financing, EDC was also able to help Exo-s find opportunities in Mexico by making introductions to some of the major automotive manufacturers in the area.
“EDC’s representatives on the ground in Mexico helped promote our products, and introduced us to Mercedes-Benz and Daimler Trucks, which could result in new business for our company,” said Denault.
Read more about how Exo-S is expanding internationally at Exportwise.
