Magna International plans a $135 million plant in Queretaro, Mexico, to produce molded and painted exterior parts such as fascias and rocker panels.
The 285,000-square-foot factory is expected to open in the first quarter of 2016.
Mexico’s light-vehicle output rose 9.8 percent to 3.2 million vehicles in 2014. The country is the world’s seventh-biggest manufacturer and the fourth-largest exporter of cars and light trucks, according to the Mexico’s automotive industry association, AMIA. More than 80 percent of light vehicles produced in the country are exported.
AMIA has predicted that Mexico will produce more than 5 million vehicles by 2020.
"We are pleased to establish operations in Queretaro, a growing region for the automotive manufacturing industry with a skilled work force and professional business environment," Grahame Burrow, president of Magna Exteriors, said in a statement. "Our growth in Mexico offers opportunities for Magna to continue to align ourselves with the ongoing needs of our global customers."
Magna’s manufacturing presence in Mexico dates to 1991 when it opened a plant in Puebla.
The Queretaro factory will create 600 jobs within the first year of operation, the company said. With the Queretaro plant, Magna will have more than 24,000 employees at 30 facilities and an engineering and product development center in Mexico.
Magna, of Aurora, Ontario, ranks No. 3 on the Automotive News list of the top 100 global suppliers with worldwide parts sales to automakers of $34.38 billion in 2013.