Kawasaki Motors this week formally inaugurated a new US $200 million factory in the northern Mexican state of Nuevo León where it will produce all-terrain vehicles and personal watercraft.
The new factory is located in Salinas Victoria, about 7 km north of Monterrey, the state capital. The plant, which began operations in April and is expected to generate 1,500 jobs by 2026, will have an annual production capacity of up to 30,000 off-road four-wheelers.
After the ceremonial ribbon-cutting ceremony, Nuevo León Governor Samuel García and Kawasaki executives toured the production lines that are making Jet Ski, Mule and Mule Pro vehicles.
“We are confident in telling you that the best is yet to come for Kawasaki Motores de México,” García said, according to a government press release. “They are arriving at the best time, to one of the most prosperous municipalities, the best place to do business and invest.”
García also said Nuevo León has been the recipient of US $68 billion of investment since he took office in October 2021, and that the 287 new projects have produced 220,000 new jobs.
Among those present at the inauguration were Yasuhiko Hashimoto, president of Kawasaki Heavy Industries LTD, Hiroshi Ito, president of Kawasaki Motors Corporation and Nashi Kato, president of Kawasaki Motores de México.
Kawasaki has previously said the facility is a response to booming demand and is intended to bolster its production capacity for off-road vehicles.
In an April 2024 press release, Kawasaki explained that its goal “is to enable flexible production to meet fluctuating demand by fully integrated production, from material processing through to the assembly of complete vehicles as well as automating the production line.”
Kawasaki added that the Salinas Victoria plant will play a large part in strengthening its business base in the North American market, allowing the company “to provide better products and services as [it strives] to further promote the Kawasaki brand and deliver customers even more satisfaction.”
The project was first green-lighted in early 2021 and the original plan was for the plant to come on line in the first quarter of 2023. But Garcia did not finalize the deal until October 2023 after meeting with Kawasaki executives while visiting Japan on state business.
The Salinas Victoria facility is not the first Kawasaki plant in Mexico. The manufacturer’s Mexican subsidiary, Kawasaki Motores de México, also operates an engine factory in Monterrey.
With reports from El Universal and UTV Driver
