Redditch-based GKN has started construction work on its new factory development in Mexico.
The factory will be operated by GKN Driveline and will supply automotive firms in Latin and North America. It is investing $17.5 million in the new facility, which should be operational by April 2016.
The 12,000sq m factory — GKN Driveline’s second plant in Villagran (in the state of Guanajuato) — will produce up to a million propshafts per year for customers such as Audi, BMW, FCA, Ford, Honda, Mazda, Nissan and Volkswagen.
A ground-breaking ceremony at the new factory was attended by GKN Driveline CEO Phil Swash, GKN chief executive Nigel Stein and other company directors.
Fidel Otake, GKN Driveline director for Mexico, said: “The expansion of GKN Driveline Villagran, which is located in a growth region for automotive manufacturing in Mexico, further strengthens our position in this important market. GKN is bringing the latest propshaft and side-shaft production techniques to Mexico, helping our customers to make their vehicles lighter and more efficient.”
GKN Driveline Americas president Robert Willig said: “As the global leader in driveline technology, GKN is addressing the key requirements of OEMs and their customers. Half the world’s cars are driven by GKN technology, and we work with over 90% of the world’s automotive manufacturers.
“We lead the market in driveshafts and fuel-efficient all-wheel-drive systems, and we continue to invest in the business to ensure it can meet the global needs of its customers.”
GKN Driveline first established a presence in Mexico in 1979 and now employs 2,075 people at three plants.