Kia Motors is preparing to build its first automotive plant in Mexico. With a forecast capacity of 300,000 vehicles, which is the the standard optimal configuration used by Hyundai/Kia existing facilities in Alabama and Georgia, the proposed assembly factory will be located near the city of Monterray, Mx.
The location of the proposed automotive assembly plant has important direct implications for two holdings of the model portfolio; that being Hyundai Motor Corp. HYUD.IL-London, $73.55 US) and Kansas City Southern Railway (KSU-NYSE, $107.81). Monterray is served by Kansas City Southern.
Indirectly, should the plant proceed, there will also be secondary benefits for the airport operator within the region, Grupo Aeroportuario Del Centro Norte S.A.B. de C.V (OMAB-NASDAQ, $32.37); OMAB is also held within the model portfolio.