Kia Motors will open a $1 billion auto plant in northern Mexico in 2016, with the capacity to build 300,000 vehicles annually, Mexican President Enrique Peña Nieto announced Wednesday.
The factory will be built in the city of Pesqueria in the border state of Nuevo Leon.
"It is the first investment by the Korean auto industry in our country," Peña Nieto said, noting that parts of the country have enjoyed a boom in automotive production financed by U.S. and Japanese firms.
"We celebrate that KIA Motors has decided to join in the success story that we Mexicans are writing," he added.
FOR THE RECORD
An earlier version of this story said that Kia would spend $1.5 billion to build its new factory. In fact, Kia will spend $1 billion, though investments from parts suppliers and others will add much more to the total financial impact.