Daido Metal Co., Ltd. will invest approximately ¥4 billion to expand production capacity for engine bearings used in generators serving data centers, aiming to build a new plant by fiscal 2027 and begin production in 2028. Hanwa Co., Ltd. established a coil center in Rosarito, Baja California, and began full-scale operations in August. The investments are intended to strengthen the supply chain with a view to the North American market.
Daido Metal Co., Ltd. will expand production capacity for engine bearings used in generators serving data centers at its local subsidiary in Jalisco State, Mexico. Under a production commitment agreement with a North American diesel-engine manufacturer, the company will invest approximately ¥4 billion by fiscal 2027 to construct a new plant building. Construction is scheduled to begin in autumn 2026, with production scheduled to start in 2028. This will increase the company's global production capacity for data center bearings to 1.5 times the current level.
Hanwa Co., Ltd. established the Hanwa Steel Service Tijuana coil center in Rosarito, a city in northern Mexico, and began full-scale operations in August. The facility cuts and sells thin-gauge steel sheets and is the company's second processing base in Mexico, following its facility in Guanajuato State. The SDV coil center function will be transferred to HSTJ at the end of August 2026, while SDV will continue operating as a sales base.
(Supplementary information) Other Japanese companies have also been reported to be investing in Mexico in response to demand from AI data centers in North America, against the backdrop of growing AIDC demand in the North American market.
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