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Kia Motors soon to break ground on new Mexico plant- sources

SEOUL, June 2 (Reuters) - South Korean automaker Kia Motors plans soon to break ground on a factory in Mexico, two sources familiar with the matter told Reuters on Monday, as it grapples with capacity constraints at its U.S. factory.

The new factory, which will have annual production capacity of 300,000 vehicles, will be built in the city of Monterrey, one of the sources said.

The source added that Kia plans to start production at the plant 21 months after ground-breaking, and will initially produce two small cars there. The sources did not give further details.

A company spokesman did not have immediate comment.

(Reporting by Hyunjoo Jin; Editing by Tony Munroe)