MEXICO CITY Japans Topy Industries Ltd. is investing $13 million in a steel vehicle wheel plant in Mexico.
The plant, which will manufacture wheels for passenger cars and light commercial vehicles, is located in Silao, in Mexicos Guanajuato state.
Topy will hold 75 percent of the joint-venture plant, with the remaining 25 percent held by Italys MW Italia SpA. Construction works are expected to start in September, with start-up scheduled for April 2015, Topy said.
The company did not disclose production capacity figures for the facility.
"(The) volume of passenger cars in Mexico is expected to steadily expand in the mid to long term as increases in export volumes to markets such as North America and South America is anticipated," Topy said.
"With the construction of a new factory in Mexico, we will be able to actively respond to the global supply structure requests from our customers. We will also work to take in expanding steel wheel demand in Mexico," the company added.
The plant will be Topys first in Mexico.
Until now, Topys supply of wheels into Mexico was handled from Japan, via Topy America Inc., its Frankfort, Ky.-based subsidiary.
Mexicos passenger vehicle sales rose 9.8 percent year on year in April, according to national automotive dealership association Amda.
A version of this article was first published by AMM sister publication Steel First.