Mazda will add a new Engine Machining Factory to its Mexican Plant image

The Japanese corporation announced today its intention to also construct an engine machining factory at its new vehicle production facility in Mexico, Mazda Motor Manufacturing de Mexico S.A. de C.V (MMMdM).

The recently built Mexican plant is a joint venture between Mazda and Sumitomo Corporation and the new engine factory will have the task of producing the new Skyactiv engines for the vehicles produced on site, like the Mazda3 and Mazda2. It will produce approximately 230,000 engines per year with operations expected to begin in October 2014.

The joint venture will invest 120 million U.S. dollars (approximately 12 billion yen) in the new factory and employ approximately 100 extra people to operate it. As of now, construction of the buildings which will house the vehicle and engine assembly lines is complete and preparations are being made for the start of operations in the fourth quarter of fiscal year ending March 2014.

MMMdM’s President and CEO, Keishi Egawa, commented, “MMMdM will play a key role, supplying vehicles to North, Central and South America. We are very happy to be able to strengthen its foundation as a vehicle supply base and enhance our engine production framework in Mexico. Moving forward, we remain committed to contributing to the development of both the local community and the entire Mexican automotive industry.”

The Nippon Corporation is targeting global sales of 1.7 million units by March 2016 and anticipates 80% of those models will feature Skyactiv Technology, a good reason for Mazda to enhance its production framework – as the Skyactiv engines are currently produced only at the Hiroshima Plant in Japan and Changan Ford Mazda Engine Co., Ltd. in China.