KBI Dongguk Industry announced on the 8th that the expansion of its Mexican factory, aimed at increasing production capacity to 100 billion won, was completed on the 26th of last month.
Having started construction for the factory expansion in June last year, the KBI Dongguk Industry facility in Mexico has invested 40 billion won over the past year to complete an expansion of 14,720 square meters. It has introduced injection molding machines and IMG molding machines to maximize production efficiency through automation and modernization.
Established in April 2017 in Pesqueria, Nuevo Leon, Mexico, KBI Dongguk Industry’s facility covers an area of 50,000 square meters and produces injection-molded plastic products such as crash pads, headlamps, and rear lamps for vehicles produced in North American automotive plants.
Products manufactured at KBI Dongguk Industry’s Mexican facility are supplied to Hyundai Mobis’s Mexican plant, which assembles these components along with others received from various companies, to supply automotive parts for Hyundai, Kia, Chrysler, Mazda, and other foreign car manufacturers in North America.
Following the implementation of the Inflation Reduction Act (IRA) in the U.S. in August 2022, which provides subsidies of up to $7,500 for fully assembled electric vehicles in North America, automakers have intensified the expansion of local production bases.
In line with the expansion investments in electric vehicle production by automotive manufacturers, KBI Dongguk Industry’s Mexican facility plans to produce components applicable to seven upcoming Hyundai and Kia vehicle models that will be mass-produced in North America.
As a result, KBI Dongguk Industry predicts that the expected sales from its Mexican factory will increase from 42 billion won this year to 65 billion won next year, marking a 55% rise.
KBI Dongguk Industry is also set to produce components for five new electric vehicle models from Hyundai and Kia at its newly expanded facility in Asan, Chungcheongnam-do, ensuring a vital role in the domestic and overseas electric vehicle production of its OEM partners.
CEO Kim Yong-hee of KBI Dongguk Industry stated, “To play a key role as a leading supplier for electric vehicles, we will focus on stabilizing supply and achieving co-growth through win-win cooperation. Our entire staff will do their best to make KBI Dongguk Industry a global leader in the automotive parts industry through continuous R&D investment and high-quality products.”
Lee Sang-jin daedusj@autodiary.kr