Nissan Confirms Plan For $2 Billion Manufacturing Complex in Mexico

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Nissan Motor (NASDAQ:NSANY) announced plans today to invest up to $2.0 billion for an all-new manufacturing complex in Aguascalientes, Mexico, to support the company’s Americas growth strategy. The facility, which will complement Nissan’s two existing Mexican factories, is scheduled to begin operations in late 2013.

During the initial phase of its development, the new complex will support production of up to 175,000 units annually of Nissan’s ‘B’ platform products. Further expansion of the site will be considered in phases as product and capacity needs are formalized.

Up to 3,000 direct jobs will be created initially at the new facility, with approximately 9,000 positions to be generated within the supply chain and wider community. With these additional jobs, Nissan’s total headcount in Mexico will expand to nearly 13,500.

Nissan Motor (NASDAQ:NSANY) has potential upside of 27% based on a current price of $18.84 and an average consensus analyst price target of $23.92.

Nissan Motor is currently above its 50-day moving average (MA) of $17.81 and above its 200-day of $18.68.

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