With an investment of 60.8 million dollars opened the first Korean company plant LS Automotive in Nuevo Leon, through which they will produce electronic components for the automotive industry, aiming to serve the North American market.
In April 2018 LS Automotive held the placement of the plant´s first stone which opened on April 9th at Finsa Industrial park, in the municipality of Guadalupe. It will have a production area of 40,000 square meters. It is their first plant in Mexico and joins those operating in South Korea, China, Japan, India, Germany and the United States.
LS Automotive is one of the best shareholders in the market for vehicle switches and components in Korea and worldwide. The company was founded in 1973 and has its headquarters are located in Ansan, South Korea. LS Automotive Corp. operates as a subsidiary of LS Mitron Ltd.
The company offers window switches, panel, interiors, combination, switch and inhibitor, E-relay, plug-in, retransmission products of PCB, sensors, anti-theft control systems, electric seat modules, steering modules, lamp units, electric sliding doors, converters, interior lamps, among other automotive products.
LS Automotive supplies big assembling companies such as Honda, KIA, Mazda, Nissan, Subaru, Toyota and Suzuki.
The opening of the plant represents a new job source for the area, since LS Automotive will begin operating with little more than 100 employees but will gradually increase its workforce until 1,000 employees.
Cheol-Woo Lee, CEO of LS Automotive, said that it is a great honor to celebrate the opening of this plant in Mexico, as it is the sixth manufacturer of automobiles in the world with a production of four million units during 2018.
“We would like to expand our presence in North America. I am sure that in 2022 LS Automotive will achieve an income of 200 million dollars in annual sales in Mexico and an annual income of 500 million dollars in orders,” he noted.
The directive assured that LS Automotive will continue to increase its world competitiveness through its global network of manufacturing centers in Korea, India and now in Mexico.
“Also we will maximize the value for our customers with zero defects, better competitiveness in costs and a perfect pieces supply chain. These objectives are enabled through factors such as automation, IoT, Smart Factory, effective production processes and logistic systems,” he explained.
In turn, Cheol-Woo Lee guaranteed that for 2022 the company will achieve an income of 200 million dollars in Mexico and they expect having an annual income higher 500 million dollars.
“In addition to this, LS Automotive will contribute to local economy, by creating more jobs and fulfilling our social responsibilities. Today is the first day of the new journey to the North American market and together we will make a difference in this industry,” he noted.
Meanwhile, Chris Karaskiewicz, global purchase chief on General Motors United States, said he was very happy for the settling of LS Automotive in Nuevo Leon and anticipated total success.
“We know about the capability LS Automotive has, based on what we have seen until today, it is easy to say they will be very successful. In representation of GM and its customers we wish you complete success,” he said.
FOREIGN COMPANY TRUST IS VALUED
Lorenzo Aguilar Camelo, undersecretary of Investment and Industrial Promotion in Nuevo Leon, valued the decision of Korean businessmen of settling in the entity and assured that LS Automotive will continue generating jobs for Mexican workers in the upcoming years.
“We have held a wide tour through the facilities and we just see the pieces they will manufacture in this plant, those are pieces used in most vehicles we use, such as seat control switch, of steering and speed, forefront technologies.”
Likewise, the official underlined that LS Automotive mentioned that in addition to the plant they anticipate settling a Center for Technology Development in Nuevo Leon.
This center represents a trust investment. Investments like that set Nuevo Leon in another level. They said they will do this in under five years because they want to develop their own technology here in Mexico, not to be a simple manufacturer and be near the market,” he observed.
The official added that the number one country investing in Nuevo Leon continues to be the United States, but Korea is located in third place and highlighted the fact that other Asian countries like China and Japan have showed interest to invest in the entity.
“That interest is due to reasons such as the fact that Nuevo Leon is consolidating as a place where the main asset is people. We are talking about hard working and of great quality workforce, even important plants such as Carrier or LEGO have their most productive factories here. All this spreads worldwide making other big companies turn and see Nuevo Leon as an option for their operations,” he said.
Finally, Cristina Diaz, mayor of Guadalupe, highlighted that big companies arrival help better training Mexican technicians and professionals, therefore such companies will always be welcomed.
“LS Automotive specializes in the automotive sector is settling at Finsa industrial park which has first world technology. I can assure that it is located in the best industrial park of the city and soon we will have new news regarding its growth,” he ended.