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
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
"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.
passenger vehicle sales rose 9.8 percent year on year in April,
according to national automotive dealership association
A version of this
article was first published by AMM sister publication Steel