Company will also invest 800 million euros per year in North American operations to 2020.
Automotive and machinery component maker ThyssenKrupp has opened a new automotive steering systems and components plant in Puebla, Mexico.
ThyssenKrupp has invested around US$97 million (90 million euros) in the new production facility.
With car production in North America forecast to rise by up to 12 per cent by 2020, North America is already the world’s second largest auto market. “To participate in this growth [we] plan to invest more than 500 million euros in [our] North American components business alone up to 2020,” ThyssenKrupp said in a statement. “[We] will invest over 800 million euros in the growth region North America up to 2020.”
The company is building a further axle assembly plant 70 kilometers away in San Jose Chiapa to supply Audi from 2016. In the coming year work is expected to start on the construction of a production line for cylinder head covers at a new engine components plant in the Bajio region. The construction of new plants is set to increase the number of employees in Mexico by approximately 40 per cent in the next five years, the company said.
With the new steering systems plant, ThyssenKrupp now produces components for the automotive industry at four sites in Mexico. The product portfolio ranges from engine and steering components to springs and stabilizers to the assembly of axle modules. Throughout the North America region the components group has 11 sites and generated sales of around 1.6 billion euros in fiscal 2013/14.