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Japan's Nidec to build $715m plant in Mexico to tap EV demand

Motor maker to add North America as e-axle production base

Shigenobu Nagamori, Nidec's chairman and CEO, says he is building capacity ahead of demand because "it would be too late to invest in new production after orders are placed." (Nikkei montage/Keiichiro Asahara/Tomoki Mera)

KYOTO -- Japanese motor maker Nidec is planning to invest an estimated 100 billion yen ($715 million) in the construction of a plant in Mexico that would produce electric axles, the powertrains of electrical vehicles.

The plan was revealed by Shigenobu Nagamori, Nidec's chairman and CEO, in a recent interview with Nikkei. The Kyoto-based company is currently producing e-axles in China and Europe but will start making them in North America as well ahead of an expected surge in demand.

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