MEXICO CITY-LDM Technologies Inc.'s recently announced plans to build a US$25 million plastics auto parts plant in Mexico are on hold after the firm's chief local customer, Volkswagen AG, decided to review its requirements. Construction of the 160,000-square-foot auto parts molding and painting plant, which was due to begin in August in San Luis Potos¡ for a January opening, has been postponed ``pending definition from the customer,'' according to William Kessler, LDM's business development and corporate resources vice president.
Kessler, speaking in a telephone interview July 19, would not reveal details of changes being considered by Volkswagen but implied that LDM might have to make major alterations to its plans.
Kessler declined further comment until the plan review is concluded.
The plant originally was scheduled to produce exterior parts for VW Golf A4 and Viento models in Mexico, according to the molder.
LDM, which is transferring its head offices from Troy, Mich., to Auburn Hills, Mich., revealed a week ago that it already has ordered 10 injection presses for the Mexican plant from Japanese supplier Ube Industries Ltd.
During the next five years, LDM had projected it would hire 800 workers to staff the San Luis Potos¡ plant and invest another US$50 million in it.
LDM Technologies de Mexico SA was to have molded bumpers, under-the-hood parts such as intake manifolds and reservoir bottles, and interior components, including consoles and glove compartments.
LDM also planned to supply other auto manufacturers in Latin America, including Ford Motor Co. and General Motors Corp.