Mando Corp., a major South Korean auto parts maker, said Sunday it has broken ground on a factory in northeast Mexico and invested some US$130 million in the new facility as part of efforts to expand its presence in Latin America.
Construction for the upcoming plant began Friday, when company officials held a groundbreaking ceremony in the Mexican state of Coahuila, Mando said.
The new plant will produce car parts, including braking and steering devices, as well as those for suspension, starting in January 2017, the company said.
Moreover, the auto parts manufacturer said it plans to pour in $130 million into the Mexican plant by 2026 and set up a global supply chain for both South Korean and other overseas carmakers.
"Mando currently has two factories in the United States -- in Alabama and Georgia -- and one in Brazil, and the new facility in Mexico will help the firm establish a more solid foothold in the Americas," said Sung Il-mo, the CEO of Mando.
Mando supplies its products to Hyundai Motor Co. and Kia Motors Corp., as well as to foreign auto firms, such as General Motors Co. and BMW AG.
The company currently has production plants, research facilities and corporate offices in more than 10 countries worldwide.