CHICAGO Japan-based automotive supplier Denso Corp. is spending roughly $51.4 million to expand operations and add about 450 new jobs at its manufacturing facility in Silao, Guanajuato, Mexico.
The investment will underwrite the addition of a new production line and position Denso Mexico SA de CV to manufacture alternators for its North American customers as they step up vehicle output. The company is a Tier I supplier to Toyota, Ford, GM, Honda and Chrysler. The new line is scheduled to begin production in October 2014.
Denso Mexico just completed an earlier expansion of the Silao plant, which was built in 1994. That stretch called for the installation of a new manufacturing line that will begin producing heating, ventilation and air conditioning units this October.
Densos initial investment totaled $57 million and funded the construction of an 84,000-square-foot building and more than 400 new jobs. Denso has already lifted its output of radiators and washer systems and, as a result, decided to expand by an additional 100,400 square feet to accommodate the alternator line and future growth.
The overall investment at Silao now totals $108.4 million and the creation of about 850 jobs.
Denso also operates two plants in Nuevo Leon state that manufacture instrument clusters, climate control panels and engine system control components.
In January, the company indicated it would invest nearly $1 billion in North America over the next four years. The goal is to better support regional customers, attract new business and localize products, many of which will help automakers meet upcoming fuel efficiency requirements.
Investments adding up to more than $750 million are earmarked for the United States. Denso counts 22 manufacturing facilities across North America, where sales totaled $6.8 billion for the fiscal year ending March 31, 2013.