Production was launched in September 2014 but the plant was officially inaugurated on Thursday.

The facility will initially produce commutators but it has ample spare capacity to expand production with products for hybrid engines, the company said.

The initial workforce is 30-strong but is to be expanded to 70 by 2016, Kolektor board member Valter Leban told the STA.

Kolektor started eyeing Mexico in 2005. Since several attempt to take over local companies failed, it opted for a greenfield investment.

Kolektor is a key supplier for the automotive industry and opted for Mexico due to the presence of major car makers.

In nearby Leon, companies including Volkswagen, Pirelli and Denso, are already present.

Moreover, Leban said Mexico was keen on attracting foreign investment. "We've gone from selection of location to serial production in just over a year," he said.

While the new facility will primarily cover the Mexican, US and Canadian markets, Leban said the location also made it appropriate for supplying South America.

Silau is Kolektor's 18th production location and Mexico the 8th production country for the company.