KIA Pesquería, Nuevo Leon

Thu, 09/01/2016 - 11:10

For its first plant in Mexico and Latin America, KIA Motors Mexico chose the state of Nuevo Leon as its host. Three factors played a key role in the selection. First, there is no other OEM operating in the state. Secondly, Nuevo Leon has a solid auto parts supply base. Finally, the state offers a skilled workforce that can meet the challenges of the automotive industry.

The plant’s four production buildings for stamping, welding, painting and assembly were built on 499 hectares. Construction started in August 2014 and the site began operations on May 2016. Located in the municipality of Pesqueria, the plant is expected to manufacture 100,000 units in 2016. Once fully operational it will produce between 300,000 and 400,000 units annually. The model now being assembled is KIA’s Forte with four and five doors.

An estimated investment of US$3 billion was needed to begin operations that will generate economic benefits of around MX$27 billion (US$1.5 billion) for the state of Nuevo Leon. In addition to the direct revenues that will be generated for KIA, the number of jobs created in the state by 2017 will more than double, totaling 14,000 people, including suppliers.

Eighty percent of the vehicles that will be manufactured will be exported to 80 different countries, including the US, Canada and Latin America. The quantity of exports translates to an estimated annual value of US$4 billion for Nuevo Leon.

Though the plant is already operational, it still lacks infrastructure to be fully functional. It is missing a four- lane highway to connect the northern and southern parts of the plant. The OEM, with the state government’s support, needs to finish the construction of the warehouse and loading patio, pluvial and sanitizing drainage, railroad sidings, a training center, a water-processing plant and ensure the functioning of the electric installation.

The plant is one of the most modern facilities KIA has. The walls and windows are covered with thermal material to avoid excessive consumption of electric energy. Its cutting-edge Regenerative Thermal Oxidizer (RTO) technology will eliminate air pollution from the manufacturing process by purifying emissions. This will make the plant one of the most eco-friendly facilities in the country.