KYB has announced the construction of a plant for a new KYB subsidiary in Mexico that will produce hydraulic pumps used in continuously variable transmissions (CVTs).

The main customer for the pumps will be Jatco, which recently announced expansion plans for Mexico.

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KYB said it has decided to manufacture and sell CVT hydraulic pumps in Mexico as part of ongoing investments in emerging countries with good prospects for economic growth. Outside Japan, KYB started manufacturing CVT pumps in Zhenjiang, China, in the first half of 2012 and plans to begin production in Chonburi, Thailand, in the first half of 2013. Mexico will be the third overseas CVT pump production facility.

The plant will be constructed in Silao in the state of Guanajuato. In the future, this subsidiary will also manufacture and sell automotive steering components and hydraulic shock absorbers at the same location.

Outline of new subsidiary / plant

Trade name: KYB Mexico

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Location: Silao, Guanajuato (Guanajuato Inland Port industrial park)

Representative: Yoshio Tsuchiya (senior staff manager, production engineering department, Gifu North Plant, Automotive Components Operations KYB)

Principal business: Manufacture and sales of CVT hydraulic pumps

Date of establishment: October 2012

Construction: Completion: December 2013

Start production: September 2014

Paid-in capital: US$19m

Ownership: KYB Corporation: more than 99%, KYB Latinoamerica: less than 1%

Capital investment: JPY5.4bn (US$57.72m)

Floor area: 21,000 square metres

Total site area: 134,000 square metres

Production volume: 100 thousand per month

Number of employees: About 130

Major client: Jatco México