Tokyo, May 1 (IANS/EFE) Furukawa Electric plans to break ground next month on a new auto parts plant in Mexico to supply Japanese automakers operating in that country, the Japanese media reported.
Furukawa, which supplies products to the automotive, construction, electronics, energy, materials and telecom industries, expects the $12.2 million plant to be finished in January 2014, the Nikkei business daily said.
The company currently has two auto parts plants in Mexico, a plant that produces fiber-optic cable for the telecom industry in Brazil and another plant in Argentina.
Furukawa wants to expand its presence in Latin America and boost sales in the region from $102 million today to $153 million by 2017.
The new plant in Mexico will initially employ 300 people, but the payroll could climb to about 1,000 within a few years, Furukawa said.
Wires and cables produced at the new plant will be sold in Mexico and exported to Latin America and Europe, the company said.
Furukawa also plans to manufacture parts for vehicle air bag systems and battery sensors at the new plant.
Mexico hosts the largest concentration of Japanese corporations in Latin America, with nearly 540 companies, including automotive industry titans Toyota, Nissan, Honda and Mazda, operating in the country.