Mazda CX-5, CKD, Penang Drive & Inokom plant tour_7 Mazda today announced plans to build a new engine machining factory at its vehicle production facility in Mexico.

The new factory operated by Mazda Motor Manufacturing de Mexico S.A. de C.V. (MMMdM) is a joint venture between Mazda and Sumitomo. Mazda believes that the new factory which cost an investment of USD 120 million would play a key role in its vehicles supply chain to the American continent.

The MMMdM factory will produce SKYACTIV engines for Mazda3 and Mazda2 variants. Expected to go live in October next year, the factory is expected to churn out approximately 230,000 engines a year.

In addition, construction of the buildings which will house the vehicle and engine assembly lines is complete and preparations are being made for the start of operations in the fourth quarter of fiscal year ending March 2014. The establishment of the new engine machining factory will further strengthen Mazda’s production system for SKYACTIV technologies. Also, by localizing production and increasing the number parts procured locally, Mazda will enhance its ability to withstand exchange rate fluctuations.

Globally, Mazda targets a global sales of 1.7 million units by 2016, with 80% of the units featuring SKYACTIV engines. SkYACTIV engines are also manufactured in Horishima and China’s Changan Ford Mazda Engine Co. Ltd.

MMMdM’s President and CEO, Keishi Egawa, reiterated, Moving forward, we remain committed to contributing to the development of both the local community and the entire Mexican automotive industry.”

Mazda’s major milestones in Mexico
Dec 2004: Mazda arrives in Mexico
Jun 2011: Plans to Mazda cars
Sep 2011 MMMdM joint venture with Sumitomo Corp.
Oct 2011 MMdM goes into operation
Nov 2012 Agreed to produce Toyota vehicles at MMMdM
Jan 2013 MMMdM production capacity to churn out 230,000 units annually