The Mexican unit of Japanese automaker Honda Motor Co. will invest $313 million in expanding its plant located in the central state of Guanajuato, the state government told SteelOrbis in an email.
Honda has production plants in Mexico in Guanajuato and in the western state of Jalisco. It produces vehicles, engines and transmissions for vehicles, as well as motorcycles.
Honda's investment is to expand production capacity and set up production lines in the city of Celaya, Guanajuato. With this investment, investments of $1.54 billion will have accumulated in this plant since the construction announcement in 2011. The facilities will employ 4,600 workers.
According to the report prepared for SteelOrbis, Honda's investment is part of the agreements reached by Governor Diego Sinhue Rodriguez Vallejo on his recent work tour of Asia visiting 15 companies, 13 of which were from the automotive sector and 12 of them announced or ratified investments for the Guanajuato automotive cluster with companies such as General Motors (in the city of Silao), Ford (Irapuato), Mazda (Salamanca), Toyota (Apaseo El Grande) and Volkswagen (Guanajuato).
The investment committed by the projects is $1.02 billion from companies from Japan and South Korea. The expected new employment is 4,300.
Data from the Mexican automotive industry ranks Honda as the tenth largest vehicle producer in the country, surpassing the German BMW and Mercedes Benz. In addition to the Chinese JAC Motors.