ThyssenKrupp has opened a new automotive steering components plant in Puebla, Mexico.
The facility complements ThyssenKrupp's existing plants that produce components for the automotive industry in Mexico.
The company's products include engine and steering components, springs and stabilizers as well as assembly of axle modules.
ThyssenKrupp's components technology business operates eleven sites across the NAFTA region, and generated revenues of around €1.6bn in fiscal 2013-14.
Car production in North America is estimated to increase by up to 12% by 2020.
ThyssenKrupp CEO Dr. Heinrich Hiesinger said: "North America is already ThyssenKrupp's most important sales market outside Germany, accounting for around 22% of our total sales.
"We are profiting from economic growth and the renaissance of manufacturing in the USA. That's particularly true of our components business, which is why we have started this investment drive."
Through 2020, the company intends to spend €500m its North American components business and €800m in total in North American operations.
According to ThyssenKrupp, auto manufacturers are switching to steering technology for midsize and compact segments.
Compared to conventional hydraulic steering systems, electromechanical steering systems are said to offer up to 10% in fuel efficiency.
