Japanese automotive components manufacturer Denso has revealed plans to strengthen its transmission components manufacturing capabilities at its plant in Apodaca, Nuevo Leon, Mexico.
The $53.8m project will allow the company to cater to the demand in North American region.
The expansion, which includes addition of an 8,200m2 area, will create 500 jobs in the region by 2018.
Denso System Control components business unit executive director Hiroaki Okuchi said: "Mexico is an important and essential market for the automotive industry and for the DENSO Group."
"By establishing new companies and expanding conventional production bases, we will strive to better meet our customers' needs."
Apodaca plant manufactures instrument clusters, air conditioning control panels, and variable cam timing (VCT) systems.
Denso Mexico also operates facilities in Nuevo León and Guanajuato where it manufactures sensors, car air conditioners and radiators.
Hamanakodenso, a Denso Group company, also plans to set up a $35.8m facility in Salinas Victoria City, Nuevo Leon, to manufacture solenoids for engine and airflow control units for its North and South American markets.
Work on the project is scheduled to commence in January 2015 with production to begin in phases from around August 2016.
