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Business

Japan's manufacturers warming to Mexican offshoring

Kasai Kogyo is looking to construct its third Mexican plant.

TOKYO -- Half a world away from home, Japanese autoparts and materials makers are opening new production facilities in Mexico to take advantage of its cheap labor and free trade agreements with countries including the U.S.

Bearings maker NSK plans to start mass-producing automatic-transmission clutches for midsize and large vehicles in central Mexico next year. The new plant, in the state of Guanajuato, is being set up by group member NSK-Warner at a cost of 2 billion yen ($19.5 million).

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