LG Innotek opens automotive electronic parts plant in Mexico


Korea’s leading electronic motor developer LG Innotek has announced that it has built its first overseas automotive electronic parts plant in San Juan del Rio, Mexico.

LG Innotek plant Image credit: LG Innotek / PR Newswire
LG Innotek plant
Image credit: LG Innotek / PR Newswire

According to the press release by LG Innotek, the new plant is set to commence production of its automotive motors for Dual Clutch Transmission (DCT) systems this August.

The 34,000-square-meter plant — equivalent in size to five soccer fields — will employ 600 workers and have an annual production capacity of 7.6 million motors for transmission, anti-lock brake and steering systems by 2016.

The company revealed that it have chosen to establish its first overseas plant in Mexico as the Latin American economy is a growing “hub” for automobile manufacturing closely linked with the US, the world’s biggest auto market, via the North American Free Trade Agreement.

Leading parts makers such as Germany-based Continental and US-based TRW Automotive, as well as automakers such as Toyota, Volkswagen and Audi, operate in the market, LG Innotek noted.

Over 150 dignitaries including regional and local government officials and representatives of the South Korean government, who were hosted by Ung-Beom Lee, CEO of LG Innotek, attended the opening ceremony last Thursday.

“The new facility in San Juan del Rio will be a core centre in our global manufacturing network as we seek to provide better and more valuable support to our customers. We recognise the growing importance of Mexico as a major supplier hub in the global automotive industry,” said Mr. Lee.

“Many of our customers already operate in Mexico and we believe that being close to them will enhance our on-time delivery record.”

LG Innotek has achieved ISO/TS 16949 certification, the automotive industry’s quality assurance system, and adopted the Advanced Production Quality Planning process.

Established in 1970, the company recorded about US$5.7 billion (6.2 trillion won) in sales in 2013 and works with around 16,000 employees worldwide in 26 research, production and marketing centres.