TAIPEI (Taiwan News) – A US subsidiary of TECO Electric and Machinery Co., Ltd. will invest NT$312 million (US$10 million) as part of a plan to shift motor production from Vietnam to Mexico, reports said Friday.

The board of the Taiwanese machinery and home appliance maker decided to make the investment through TECO Holdings USA, Inc., per CNA. The main aim of the plan is to improve the efficiency of its motor plant in Mexico.

Part of the project is also a gradual transfer of production lines for small motors from Vietnam to Mexico. Shorter supply chains for the North American market would improve flexibility, the company said.

Earlier this year, TECO and Foxconn Technology announced plans for an alliance. As the world’s largest contract electronics maker, Foxconn would become TECO’s second-largest shareholder with a 10% stake. The machinery maker will have a stake of 0.519% in Foxconn, with both hoping to expand operations in the US.