LG Innotek said Thursday that it has built its first overseas automotive electronic parts plant in San Juan del Rio, Mexico.

The 34,000-square-meter plant ― equivalent in size to five soccer fields ― will commence production of its automotive motors for dual clutch transmission systems beginning in August this year.

Its 600 local employees will then expand manufacturing of other motors for antilock brake and electric power steering systems, with the aim of securing an annual production capacity of 7.6 million automotive motors for its regional auto and auto parts makers by 2016.

Korea’s leading electronic motor developer said that it chose to establish the company’s first overseas plant in Mexico as the Latin American economy is a “hub” for automobile manufacturing closely linked with the U.S., the world’s biggest auto market, via the North American Free Trade Agreement.

Top-tier parts makers such as Germany-based Continental and U.S.-based TRW Automotive, and automakers such as Toyota, Volkswagen and Audi operate in the market, LG Innotek noted.

“We will boost our global production in Mexico through aggressive investment and continuous efforts to gain a competitive edge,” said LG Innotek CEO Lee Ung-beom at a ceremony for the completion of the plant’s construction.

The Korean company’s Mexico plant will also produce modules for LED lamps and cameras, and telecommunications for smart automobiles in the near future, said LG Innotek Mexico head Song Bo-yong.

“We plan to boost the plant as our global production base for the North American market and further establish regional partnerships,” Song said.

By Park Hyong-ki (hkp@heraldcorp.com)