SEOUL (Reuters) -- Kia Motors said Thursday in Seoul that it plans to make its Forte compact and an unidentified small car targeted at the local market at its assembly plant in Mexico.
The South Korean automaker last year signed a deal to build its first Mexican factory, which will start production in the first half of 2016 in the state of Nuevo Leon.
Kia planned initially to produce the Forte compact and Rio subcompact at the plant, people familiar with the matter told Reuters at the time.
The $1 billion plant will boast annual production capacity of 300,000 vehicles.
It will boost Kia's total global manufacturing capacity to 3.37 million vehicles, including 1.69 million vehicles at domestic Korean plants and 1.68 million overseas.
Kia plans to use the plant to strengthen the brand's presence in North, Central and South America, where it has enjoyed steady sales growth in recent years.