Mexico closes U.S.-owned plant for allegedly refusing to sell ventilators to Mexican hospitals

But Bonilla ordered the Smiths Medical factory closed, because he argued it was providing no such essential service to Mexicans, and thus was not obeying health emergency contingency measures.

“We said to them `if you want us to consider you essential, you have to provide some benefit to the people of Baja California, by selling us ventilators, because we need them,”‘ Bonilla said. “They said `no, we are not going to sell you anything, we are just going to continue to use your labour’.”

Bonilla accused the company of contacting Mexico’s foreign relations secretary and the U.S. Ambassador to try to stave off the closure order. But he vowed not to cave into the pressure.

The company did not immediately respond to requests for comment. Industry sources have argued the factory is an export-only plant that operates under special rules that allow it to import raw materials and parts duty-free, on the condition they be re-exported and not sold on the local market.

Headquartered in Minneapolis, Minnesota, the company is owned by U.K.-based Smiths Group plc.

Mexico now has 3,844 case of the new coronavirus, with 233 deaths nationwide.