Magna International Inc. is building a new US$135-million factory in Mexico, adding to the Canadian auto supplier’s capacity in the booming Mexican auto industry.
Magna announced Wednesday that it has begun construction on an automotive exteriors plant in Queretaro, Mexico, that will employ approximately 600 people once it launches in early 2016.
“We are pleased to establish operations in Queretaro, a growing region for the automotive manufacturing industry with a skilled workforce and professional business environment,” Magna Exteriors president Grahame Burrow said in a statement.
“Our growth in Mexico offers opportunities for Magna to continue to align ourselves with the ongoing needs of our global customers.”
Once the plant opens, Magna will have 30 manufacturing facilities and 24,000 employees in Mexico. This compares to 46 plants in Canada, 60 in the United States and 121 in Europe.
Mexico has the fastest-growing auto industry in North America thanks to low labour costs and attractive government incentives. Mexico made 20% of the vehicles manufactured in North America last year, while Canada made 14%.