Mazda announced production of its redesigned Mazda2 has begun at the company’s new plant in Mexico.

Additionally, Mazda de Mexico Vehicle Operation (MMVO) engine machining plant, under construction since last year, has been completed and the plant began operating on October 21, 2014.

Mazda added products featuring SKYACTIV Technology are enjoying strong sales globally and in response to growing demand the company will increase production capacity at MMVO to 250,000 units annually by fiscal year ending March 2016.

In recent years, Mazda has introduced a series of vehicles featuring its SKYACTIV Technology and the company expects SKYACTIV models to account for 85 percent of global sales by fiscal year ending March 2016. Additionally, the automaker said it is working to establish a global production footprint, one of four key initiatives laid out in the Structural Reform Plan announced in February 2012.

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The start of production of the all-new Mazda2 (Mazda Demio in Japan) at MMVO, start of operations at the engine machining plant, and planned production capacity increase represent major steps forward in both of the above initiatives, stated the automaker.

MMVO’s engine machining plant adopts the same advanced production technologies as Mazda’s Hiroshima Plant, explained Mazda, ensuring an engine parts processing line that is both efficient and capable of producing a diverse range of products.

MMVO is Mazda’s third global facility to begin manufacturing the all-new Mazda2 following Hofu Plant in Japan, where production started in July, and Auto Alliance (Thailand) Co., Ltd., where production began in September.