Company also announced investments in North American operations of US$87 million per year to 2020
CHICAGO, IL—Diversified multinational manufacturing company ThyssenKrupp has opened a new automotive steering systems and components plant in Puebla, Mexico.
The new facility has the capacity to produce more than one million steering columns, more than seven million steering shafts and 45 million cold-forged steering parts per year, all bound for the North American market.
ThyssenKrupp has invested around US$97.8 million (90 million euros) in the new production facility.
“Our order books are full so we are constantly expanding our production capacities in Mexico and the USA,” said Dr. Karsten Kroos, CEO of components technology business at ThyssenKrupp. “To fulfil new orders we are planning further investment in North America averaging around 80 million euros [US$87 million] a year up to 2020. Around half of this will go into expanding and building new plants in Mexico.”
These investments will focus on expanding production capacities for chassis and engine components. In February this year ThyssenKrupp opened a new front axle assembly facility in Puebla. The company is also currently building another axle assembly plant in San Jose Chiapa to supply Audi beginning in 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.
With this new steering 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.
The ThyssenKrupp components technology division currently employs around 4,500 people at 11 locations in North America, with Mexico accounting for almost half this figure. 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.