DENSO, MexicoMexico – The company has announced investments of $53.8m and $35.8m respectively to expand in Apodaca and to establish a new facility in Salinas Victoria City. The expansion will enable increased production of transmission components; the new plant will produce solenoids for engine and airflow control units.

The Apodaca expansion by DENSO Mexico (DNMX) will add 8,200 sq.m by 2018, as well as increasing the workforce by 500. The additional production will begin in December 2015.

Meanwhile, the solenoid plant is being established by Hamanakodenso to serve the North and South American markets. It will be the third overseas branch of the DENSO Group subsidiary, joining facilities in Indonesia and Vietnam. Construction work is due to begin next January, with a production launch set for August 2016. Hamaden Mexico (HDMX) will have a 340-strong workforce at full production in 2018.

Describing Mexico as an “essential market”, Hiroaki Okuchi, executive director responsible for DENSO’s System Control components business unit, commented: “By establishing new companies and expanding conventional production bases, we will strive to better meet our customers’ needs.”