[Photo provided by LS Automotive Technologies Co.]
LS Automotive Technologies Co. (LSAT), South Korea’s manufacturer of automotive application components, has broken ground for a new plant in Mexico with hopes to expand its presence in North America through ramped-up capacity.
LSAT launched construction of a new manufacturing facility on a 40,000 square meter site in Guadalupe in Nuevo Leon, one of the largest state economies in Mexico, on Wednesday, local time. The site triples LSAT’s No.1 manufacturing facility in Ansan, Gyeonggi Province, Korea, where its headquarters is located. LSAT plans to use the new facility as an overseas base for the North American region amid growing demand in the continent including the United States and Mexico.
LSAT will invest 65 billion won ($60.4 million) in building the facility that will have an injection, processing, and automation assembly equipment with an aim to begin mass production in the first half of 2019. Major items produced from the facility will include vehicle control systems such as switch module. The company hopes to gain competitive edge over others by localizing production to expand its customer base in North America that not only includes Hyundai Motor Co. and Kia Motors Corp. but also General Motors Co. and Fiat Chrysler Automobiles N.V.
LSAT is a wholly-owned subsidiary of LSA Holdings Co. invested 53 percent by LS Mtron Ltd. and 47 percent by private equity fund KKR. The company spun off from LS Automotive Corp. in February leaving behind its Iran business. LSAT manages production of automotive application components that ranges from internal vehicle control system such as switch modules and interior lamps to electric control system such as sensors and body control equipment.
LSAT has been eager to expand overseas operations. The company will invest additional 25 billion won in its manufacturing facility in Pune, India, less than a year after expansion in June to meet growing demand.
LSAT currently supplies parts to more than half of finished car makers in India.
By Lee Jin-han and Lee Eun-joo
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]