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Kia in talks to open $1.5 bln Mexico plant - local government

MEXICO CITY, July 22 (Reuters) - South Korean automaker Kia Motors Corp is in talks with Mexico to open a new auto plant worth at least $1.5 billion, officials from Nuevo Leon's state government said on Tuesday.

The plant, which sources say will have an annual capacity of some 300,000 cars, would be built on the northeastern fringe of the city of Monterrey, according to several people familiar with the matter who spoke on condition of anonymity.

Sources in South Korea previously told Reuters that the plant will initially begin producing two small cars. The plant could help meet demand in the United States where Kia has just one plant.

(Reporting by Dave Graham)