Kia announces $1 billion investment in a new manufacturing plant in Mexico

Article by Andrew Christian, on August 28, 2014

Kia officially announced that it will invest around $1 billion in a new, highly automated plant located in Mexico. According to the official press release, the plant will be situated on a 500 hectare or 53.8 million square foot site and till help the company to boost its global manufacturing capacity to 3.37 million vehicles.

Moreover, the car manufacturer announced a new range of compact models that will be produced at the Mexico plant, located the northeastern state of Nuevo León. An investment agreement with the government of Mexico was signed at the Technological Museum of the Electricity Federal Commission (MUTEC) in Mexico City.

The event saw a delegation of key executives from Kia Motors, led by Hyoung-Keun Lee, Vice Chairman of Kia Motors Corp., and a host of Mexican government dignitaries including Enrique Peña Nieto, President of Mexico, and Rodrigo Medina de la Cruz, Governor of the State of Nuevo León.

Kia said that it will start building the plant in late September and it will finish it in the first half of 2016. Around 300,000 vehicles will leave the plant every year, at least according to the initial plans. With the new plant, Kia expects to get rid of the current global supply issues thanks to the strategic location.

Hyoung-Keun (Hank) Lee, Vice Chairman of Kia Motors Corp., said, "All of us at Kia Motors are proud to signal in a new era for the brand with the announcement of our first manufacturing plant in Mexico. 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." [source: Kia]

Topics: kia, mexico, investment

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