Japanese Firm to Invest $70 mn in New Mexico Plant

Yorozu, a major Japanese auto parts manufacturer, is planning to invest about $70 million to build a new plant in the central Mexican state of Guanajuato.

The new Mexican unit is expected to be fully operational in 2015, creating about 230 jobs and generating sales of $62.5 million, Yorozu said in a statement.

The new plant is being constructed in Mexico in response to rising demand for vehicles in that country, the company said.

Yorozu, which has another subsidiary in the central Mexican state of Aguascalientes, plans to manufacture shock absorbers at the new plant in Guanajuato.

The announcement by Yorozu comes just over a month after Japanese auto parts manufacturer DENSO said it planned to build a plant to produce air conditioning equipment in Guanajuato.

DENSO Mexico, which is based in the northern city of Apodaca, plans to start constructing the new factory in March in Silao, a city in Guanajuato at a total cost of $57 million.