Mexico just won another large factory deal: Kia Motors Corp. announced at a signing ceremony on Aug. 27 that an investment agreement had been reached with the Mexico government to build a state-of-the-art manufacturing plant in Monterrey, a city located in the northeastern state of Nuevo Leon. The new plant represents an investment of approximately $1 billion. This will be Kia's first manufacturing plant in Mexico, where it will join most of the other major global automakers in Mexico's booming automotive manufacturing industry.
Construction on the Kia Motors Mexico plant is scheduled to commence in late September of 2014. When completed, in the first half of 2016, it will boast an annual production capacity of 300,000 vehicles. That will boost Kia's total global manufacturing capacity to 3.36 million vehicles, including 1.69 million vehicles at domestic Korean plants and 1.68 million at overseas plants. Kia plans to produce a range of yet-to-be confirmed compact models at the new plant.
The highly automated plant will be situated on a 53.8 million sq ft site that will also be home to numerous supplier company facilities.