Dana Holding Corp. announced plans Wednesday to build a factory in Thailand that will begin production sometime next year.
The Mamuee company has three facilities in Thailand, employing about 650 people. The new factory, which will produce Spicer axles, is expected to create 125 jobs.
Demand is growing for the company’s Spicer axles in the South Pacific region, an important growth market, Dana said. “By expanding our gear development and manufacturing capabilities in the region, Dana will deliver programs more efficiently and be equipped to handle projected market growth,” Mark Wallace, president of Dana Light Vehicle Driveline Technologies, said.
The factory expects to be able to build 600,000 gear sets yearly.
Dana’s stock closed at $21.68, up $0.55, or 2.60 percent.