Ashurst advised 12 Korean auto part makers/service providers ('suppliers') on their US$1 billion agreement to supply parts to Kia Motors ('Kia'), which is building an assembly plant in Nuevo Leon, Mexico.

The twelve suppliers are Daehan Solution, Donghee Industrial, Dongwon Metal, Hanil E-Hwa, Hyundai Dymos, Hyundai Glovis, Hyundai Hysco, Hyundai Mobis, Hyundai Powertech, Hyundai Wia, Sejong Industrial and Sungwoo Hitech.

The automotive suppliers site, occupying approximately 165 hectares, will be situated adjacent to Kia's site in the municipality of Pesqueria. The plant will commence production sometime in 2016 and will make items such as engines, transmissions, head lamps, mufflers and door frames to support Kia's annual production capacity of approximately 300,000 cars.

The Ashurst team was led by partners John K.J. Kim, Peter Kwon and Doos Choi, senior associates Sun Kim and Huiyeon Kim. It also included associates Manse Park, Esther Sun and Jessica Kang.

Commenting on the deal, John K.J. Kim said:

"This is a crucial next step for both the suppliers and Kia in meeting the rising regional and global demand for Kia automobiles. We are proud to have represented such renowned Korean clients in the automotive industry on this significant project."