Chinese automotive company FAW Motors and its Mexican partner Ensambladora Latinoamericana de Motores (ELAM) will build a MXN 7 billion ($360 million) heavy truck assembly plant in Colima, on Mexico's west coast, according to Mexican press reports.
According to the Mexican site specialized in logistics Info-Transportes, the investment announcement was made at the Hidalgo plant, in celebration of the 71st anniversary of FAW Motors.
The ELAM-FAW company has a truck assembly plant in the central city of Zapotlán, in the Mexican state of Hidalgo.
ELAM-FAW mainly imports almost all parts for the trucks from China and only Mexican personnel assemble them. For the new plant, 1,200 people will be hired to produce up to 15,000 trucks per year.
In Mexico, according to the National Association of Bus, Truck and Tractor Producers (ANPACT), there are 13 manufacturers of heavy trucks and only three companies contribute almost 95 percent of production: Freightliner with 56.8 percent, International Trucks with 28.5 percent. percent and Kenworth (Paccar subsidiary) with 9.6 percent of the 123,500 heavy trucks manufactured from January to July.