Magna International’s powertrain unit has laid the foundation stone for a new manufacturing facility in Ramos Arizpe, Coahuila, Mexico, to supply Audi’s new SUV plant also currently under construction.

The 16,000 sq m (172,000 sq ft) facility will be the third building at Magna Powertrain’s growing operation in Ramos Arizpe (also home to two General Motors assembly plants) and there will be jobs for 230 new workers at full capacity, producing all wheel drive systems for the next generation Audi Q5.

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Magna is spending US$75m on the new plant scheduled to start production in 2016.

“Ramos has become a global centre of excellence for [our] AWD and 4WD product lines,” said Jake Hirsch, president of Magna Powertrain. “This new facility will allow us to extend our AWD capabilities and further our position as a world leader in this field.”

Audi’s new NAFTA plant is in San José Chiapa, in the state of Puebla, and will be its first factory in North America.

The company is spending more than EUR900m in the next two years to create a body shop, paint shop and assembly line, as well as a new press shop. Starting in mid-2016, a redesigned replacement for the successful Q5 SUV will be produced at the plant.

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