The Goodyear Tire & Rubber Company today confirmed the report that surfaced yesterday morning: it will build a US $550-million tire plant in the state of San Luis Potosí.
The factory will begin producing tires in the middle of 2017 and employ about 1,000 people at full production. It will be the company’s most technologically advanced and will have a capacity of six million tires a year.
The company plans a “zero-waste-to-landfill and zero-solvent facility” using natural gas, LED lighting and modern dust collection equipment.
It said San Luis Potosí was chosen after an extensive review of potential locations throughout the Americas, in which factors including cost structure, logistics, infrastructure, skilled work force, tariffs and quality of life were considered.
“San Luis Potosí is an ideal location for the new factory,” said the company’s chairman and CEO, Richard Kramer, at a ceremony in Mexico City today with President Peña Nieto. “Its central geographic location will enable us to support our valued customers and consumers throughout North America, Mexico and Latin America.”
Goodyear’s announcement is the latest of many for the automotive industry in Mexico, whose investments in both assembly and parts plants over three years are expected to reach $25 billion by the end of this year.
By the end of 2014 Mexico had already attained second place on the list of countries on the receiving end of investments in new assembly plants producing complete vehicles, notes Milenio business writer Bárbara Anderson today. China was first with $29.4 billion and Mexico second with $9.3 billion between 2010 and 2014, according to a study by the automotive research office at Canada’s University of Windsor.
Word on the street is that the announcements won’t end with Goodyear. Hyundai Motor Company is expected to be the next up with new factory plans.