German aircraft parts maker Diehl begins construction of Mexican plant
MEXICO CITY, Aug 28 (Reuters) -German aircraft parts supplier Diehl Aviation has begun construction of a plant in Mexico's central state of Queretaro, the firm said on Wednesday, in an investment expected to top $46 million.
The location will allow the company to strengthen its relationship with customers such as planemakers Airbus AIR.PA, Boeing BA.N, Bombardier BBDb.TO and Embraer EMBR3.SA, as well as local airlines, Diehl said in a statement.
The plant, where production is expected to begin next year, will initially make "extra-spacious luggage compartments" for the Airbus A220.
The space will span more than 8,200 square meters, with an expansion of between 4,000 and 6,000 square meters expected to follow, Diehl said.
The plant will initially employ around 30 staff, increasing to around 500 in the medium-term, it added.
Diehl announced plans to build the plant at the Farnborough Airshow last month. Queretaro Governor Mauricio Kuri, speaking alongside company executives, said at the time that Diehl planned to invest 900 million pesos ($46.09 million).
Queretaro has become an aviation hub in recent years, with Safran SAF.PA making landing-gear fittings, Bombardier producing rear fuselages and Airbus building emergency-exit and bulk cargo doors in the state.
($1 = 19.5289 Mexican pesos)
Reporting by Kylie Madry and Raul Cortes; Editing by Kirsten Donovan
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