Globalization: Auto parts manufacturer to build new $100 million plant in Mexico

Another example of U.S. - Mexico intergration in the context of the global economy

Magna to build new $100 million plant in Mexico - CTV Autos: "Auto parts marker Magna International Inc. (TSX:MG) is adding to its presence in Mexico by spending US$100 million to build a new plant to produce stamped and welded assemblies for several automakers. ... For example, Magna customer General Motors Co. recently announced a capacity expansion at an assembly plant in the region, where it manufactures the Chevrolet Aveo.

'The strategic decision to expand operations in Mexico is part of our long-term global strategy of developing in key growth markets,' said Magna CEO Don Walker.... Magna, which is receiving support from the Mexican government, already has 29 manufacturing plants and about 15,900 employees in Mexico.

Mexico is also close to the large U.S. auto market, which makes for efficient shipments by rail, while production costs, including labour, are cheaper than in Canada or the United States....

Carlos Guzman, CEO of the Mexican trade and investment agency ProMexico, said the government will focus on supporting Magna so that it can take advantage of the business opportunities in his country.

"Our government's interest is to make sure that investment in Mexico, from global leaders such as Magna International, are a success," Guzman said.

Magna sells auto parts to original equipment manufacturers of cars and light trucks in North America, Europe, Asia, South America and Africa. It has more than 92,000 employees in 25 countries."