Dongkook Industrial, a Korean auto parts maker, will start production at a new Mexican plant in the second half of next year to supply components to Kia Motors.
The company revealed in a statement it has completed setting up a subsidiary in Mexico to tap into the burgeoning auto market. Dongkook has recently decided on a US$ 26.3 million capital increase to finance the construction and operations of the new facility.
Earlier in April, Dongkook’s auto parts affiliate Kabul International Group kicked off construction of the factory in Pesqueria, in the northern state of Nuevo Leon, the same city where Kia opened its manufacturing base last year. Dongkook projects the facility to be completed by November.
Following the test-run of the factory, it plans to start production in the second half of 2018, rolling out parts such as crash pad, garnish and fog and head lamps, that will be first delivered to Kia. But the firm plans to grow its client base in the region, where many global carmakers are aggressively expanding.
“Mexico is our third overseas office after China and Europe,” a Dongkook official said in the statement. “Our goal is to reach US$ 36.8 million in revenue by 2020 in Mexico.”