Brazil
For more information, contact Achilles Arbex (aarbex@AMTonline.org).
Automaker Hyundai Motor Co. is planning to invest more than $1.1 billion in Brazil by 2032. The investment will focus on technology, particularly hybrid, electric, and green hydrogen cars. After experiencing substantial growth in sales over the past few years, Hyundai is heavily vested in enhancing hydrogen energy and environmentally friendly mobility businesses.
State-owned technology center CEITEC experienced a resurgence in November 2023 after being put on hold for several years, signaling Brazil's ambition to lead Latin America's semiconductor industry. Energy transition is one of the key areas where it will focus its efforts. A first investment round of $121 million was already confirmed by the Brazilian government, while bigger investments are expected to be announced in the next few months.
Chinese engine-maker Weichai announced the installation of its first manufacturing plant in Latin America. The plant will be installed in Itumbiara, Goias, and will start production with a focus on the commercialization and technical assistance of diesel and natural gas engines. The factory’s next step will be to transform into a multifunctional center to include the local production of trucks, buses, construction, and agricultural machinery.
Suspensys, a Randoncorp company, is investing $30 million to build a new factory in Mogi-Guacu, Sao Paulo. The unit, whose construction was initiated last December using Industry 4.0 concepts, is expected to be fully operational in the first quarter of 2025 to supply components to the fleet of buses and trucks produced by Mercedes-Benz do Brasil.
Given the high demand for products, Kyocera is evaluating the possible expansion of its operations in Brazil. Currently located in Sorocaba, Sao Paulo, the company operates in the cutting tools sector, which is expected to continue growing at a strong pace in 2024. Besides cutting tools, Kyocera is considering making electric and pneumatic tools, a segment for which the company made several recent acquisitions in Europe, Japan, and the United States.
Since mid-2023, several Brazilian automakers have announced new investments aimed at launching new models in addition to developing and producing electric and hybrid vehicles in the country. From Hyundai ($1.1 billion) to Volkswagen ($3.2 billion), Brazil has proven to be an attractive destination for investments – over $8 billion is expected to be invested by all the various automakers by 2032. Unlike previous cycles, these new investments will not result in increased capacity production. They will be deployed to improve facilities, adjust to the latest technologies, and launch new platforms.
Mexico
For more information, contact Carlos Mortera (cmortera@AMTonline.org).
Nuevo Leon, which will be Tesla's home in Mexico, accumulated a total of $8 billion in automotive investments, generating more than 42,000 jobs and seeing more than 190 hectares of industrial construction in 2023. The Mexican states that received the highest amounts of investment in 2023 were Nuevo Leon (43%), Coahuila (18%), San Luis Potosi (9%), and Guanajuato (7%).
ThyssenKrupp Materials is investing $37 million in a new service center in San Luis Potosi. The plant specializes in cutting aluminum parts for the automotive industry.
Auto Plastek, a Mexican Tier 2 supplier company for the automotive sector, inaugurated its plant in the Sky Plus industrial park after a $5.5 million investment. Auto Plastek is dedicated to plastic injection; while mainly for the automotive industry, it also has clients in the aeronautical and home appliance sectors, among others.
ELAM-FAW has signed a letter of intent to install a truck assembly plant in Colima. ELAM-FAW's investment could exceed $400 million to triple the production of cargo trucks to 15,000 units annually and would generate more than 300 direct jobs. The investment is expected to be completed in the coming weeks.
The Lego Group is investing $205 million to build a new 59,000-square-meter warehouse at its Cienega de Flores complex. This new facility will allow LEGO to add 42 production lines: 36 pre-packaging production lines for paper bags and six final packaging production lines. The new site will be operational in 2023.
Chinese Lingong Machinery Group (LGMG) inaugurated its production plant in Marin, Nuevo Leon. The company invested $140 million and will generate up to 7,000 jobs. LGMG plans to build more factories in Mexico. In its first stage, this factory will produce scissors and electric articulated lifts, with a production capacity of 20,000 units per year.
Sumitomo Electric Wiring Systems is nearly fully operational. With an investment of $10 million, the plant will produce electrical harnesses for vehicles.
Power management company Eaton will invest $85 million to expand its plant in Queretaro to manufacture sustainable electrical products, with a focus on the Mexican market.
Coats Group, a British supplier of high-performance yarns, will invest $20 million in a new plant in Coahuila.
Skyjack plans to invest $80 million to expand its plant in the Chuy Maria industrial park in Ramos Arizpe, Coahuila. The company will increase its production of industrial elevators to export to Asia and Europe.
