Goodyear to invest $550m to open new plant in Mexico

U.S. tire manufacturer Goodyear on Friday announced it will invest 550 million U.S. dollars to build a factory in Mexico's north-central state of San Luis Potosi.

The plant, expected to start operation in 2017, will generate 1,000 direct jobs and some 5,000 indirect jobs when fully operated, Goodyear CEO Richard J. Kramer said at a ceremony to announce the investment, which was attended by Mexico's President Enrique Pena Nieto.

"Today we are announcing our expanding commitment to Mexico," Kramer said. "This plant will better meet the needs of this country and the Latin American continent."

Construction on the plant, to be Goodyear's most technologically advanced, according to a company press release, is set to begin in June, and produce about 6 million "high-value-added (HVA) consumer tires" a year.

"Industry demand for HVA tires in (North and South America) is expected to increase by 10 million tires per year from 2014 to 2019," the company said.

Pena Nieto welcomed the investment, saying it showed "the world is looking to Mexico and saying good things about our country."

Automakers Toyota and Ford have also announced investments in Mexico, "because we have succeeded in creating the conditions that offer these companies operational advantages, and in part, this is due to the structural reforms" made by this administration, Pena Nieto said.

The investments in Mexico's auto sector amount to up to 23 billion dollars, and reflect "the confidence that international companies have placed in Mexico," the president said.