Adding to the growing number of major investments from manufacturers,auto parts maker Magna International just announced a new plant to be built in Mexico. Magna,which provides parts of various automakers,is positioning their plant in order to better serve the auto manufacturers who are choosing to invest in Mexico.
“The strategic decision to expand operations in Mexico is part of our long-term global strategy of developing in key growth markets,” said Magna CEO Don Walker. The announcement was made after Walker and the Mexican President Felipe Calderon spoke at the World Economic Forum in Davos,Switzerland.
The plant will bring $100 million in investments. It will be primarily used to create stamped and welded assemblies for many automakers. It will be located in San Luis Potosi,which is located in Central Mexico. The location was selected because of its strategic position and proximity to other auto manufacturing plants. General Motors Co,which is a major Magna customer,recently announced the expansion of their plant nearby.
The Magna plant is expected to open in June 2012 and will provide 700 new jobs. The plant will be run by Cosma International,Magna’s international subsidiary.
This is not the first expansion in Mexico for Magna. The company has 29 other manufacturing plants and over 15000 employees in Mexico.
Mexico is a prime location for all types of auto manufacturers because of its proximity to the United States market. In addition,South American countries are also becoming prime markets for auto sales.
“The economy is becoming stronger there. The auto industry is starting to become a real big player and we see lots of opportunity in South America so that is definitely a region we are focused on,” stated Magna spokeswoman Tracy Fuerst.
All this spells great news for the Mexican economy and the government is definitely willing to encourage such investments.
"Our government's interest is to make sure that investment in Mexico,from global leaders such as Magna International,are a success," said Carlos Guzman,CEO of the Mexican trade and investment agency ProMexico.