Kia is the latest car manufacturer to announce a new plant in Mexico, with the Korean carmaker pledging to invest approximately $1 billion (€759 billion) in the new facility.
Kia signed an investment agreement with the Mexico government on August 27 to build a manufacturing plant in Monterrey, located in the northeastern state of Nuevo León. Construction on the new plant will begin in late September this year, with works expected to end in the first half of 2016.
The new plant will boast an annual production capacity of 300,000 vehicles and will boost Kia’s total global manufacturing capacity to 3.37 million vehicles – including 1.69 million vehicles at domestic Korean plants and 1.68 million at overseas plants. Kia said its Mexican plant will produce a range of “yet-to-be confirmed compact models.”
The plant will be situated on a 500 hectare (53.8 million square foot) site that will also host numerous supplier companies’ facilities. Kia chose Mexico because of the local market’s strong growth forecasts for new vehicle demand, but also because it is one of the few remaining major markets of the world in which the Korean automaker does not have a sales presence.
Additionally, Mexico is well-known for its skilled, low-cost labor force and numerous free trade agreements with about 40 countries, with NAFTA being the most important.
“We are committed to producing world-class quality vehicles here in Mexico that feature industry-leading styling and high-tech convenience and safety features that customers have come to expect from Kia, while making significant contributions to both the economic growth of the State of Nuevo León and the future development of the Mexican automotive industry,” said Hyoung-Keun (Hank) Lee, Vice Chairman of Kia Motors.
Note: 2015 Kia Rio sedan pictured
PHOTOS
