Mexico
For more information, contact Carlos Mortera (cmortera@AMTonline.org).
Safran Aerosystems is increasing its investment in Chihuahua. It will invest $7 million to open a new plant dedicated to producing evacuation system components for aircraft and seat elements.
Heavy-duty automotive production continues to expand in Mexico. In August, the industry reported a 12.14% year-over-year growth. Freightliner, International, and Kenworth are the key contributors to this expansion in production.
China-based Dongfeng will invest in an assembly plant for commercial vehicles in Jalisco. The manufacturing startup will start in November 2024. An SKD (semi-knocked down) assembly plant will be inaugurated in Jalisco, with 180 units projected for 2024, followed by 500 in 2025 and 1,000 by 2026.
Hitachi Energy announced a $70-million investment in a new manufacturing facility in Reynosa. The factory will produce transformers for energy distribution.
KBY Industrial will break ground on its new facility in San Luis Potosi, which will require a total investment of more than $120 million by 2026. The first phase will involve a $20 million investment in producing automotive cables for companies like BMW and Tesla.
Boda International Holding Group announced an $850-million investment in Nuevo Leon to produce modular housing solutions. The company is involved in developing and manufacturing smart housing solutions. The concept includes setting up manufacturing facilities for modular housing solutions.
China’s Minth announces its expansion in Aguascalientes and plans to continue expanding over the next three years. Since July, they have announced $57 million in investment for their metal-processing plant. Minth manufactures structural and external auto parts for light automotive. They actively source to automotive giants like Cadillac, Jeep, Ford, GMC, Chevrolet, Buick, Lincoln, Chrysler, and others.
Brazilian WEG will invest $61 million to build new production facilities in Hidalgo. The new plant will produce electric wires and cables, focusing on manufacturing transformers, electrical motors, and generators.
Intretech is investing in Nuevo Leon for automotive navigation systems. The company will invest $60 million in their first manufacturing location in the Americas.
Ford is investing $273 million to upgrade its Guanajuato facility to produce the Mustang Mach-E. The new plant will be known as the Irapuato Electric Powertrain Center (IEPC) and manufacture Mustang Mach-E transmissions.
Valeo announced an investment plan in Mexico for up to $500 million over the next four years to support the growth of electromobility. The first-stage investment of $165 million went to inaugurating the Valeo Mobility Technical Center in Queretaro, a new mobility design center for sensors, electrical motors, and lighting systems. The next investment will revolve around software, innovations, embedded systems, and other technological applications for automotive.
Inventec Electronic Co. opened a new plant in Juarez. The facility will increase its footprint at the Mexico-U.S. border, where it will house more than 7,000 employees to manufacture telecommunications equipment.
ZF Foxconn projects it will expand its manufacturing capacity in Mexico by 2028. The plants will rotate around axis module systems, like their current production at their Nova plant in Toluca. The components are destined for key automotive players such as BMW, Mercedes-Benz, Stellantis, and ZOOX, an Amazon company specializing in developing autonomous vehicles.
Volvo announced a major investment of $700 million in Nuevo Leon for a heavy-duty truck assembly plant. In addition to producing the HD trucks, more than 60 tier-one suppliers are in conversations with the state to set up a satellite facility to source directly into the assembly operation.
Kyungshin began operations in Sonora. The city of Obregon was selected as the manufacturing site, and $11 million will be invested. The plant will be oriented to the manufacturing of automotive harnesses.
Brazil
For more information, contact Achilles Arbex (aarbex@AMTonline.org).
CNC manufacturer Index do Brasil, established by Germany's Index Corp. 55 years ago in Sorocaba, Sao Paulo, is completely renovating its factory and getting a new layout. Modernizing the unit, which is the group's oldest outside Germany, will optimize the meeting of current demands and prepare the Brazilian unit for the future.
Hitachi Energy has announced an investment of $200 million to expand its factory in Guarulhos and establish a new plant in Brazil. This investment, which will be made over four years, anticipates a projected increase in demand for power transmission equipment in Brazil and internationally.
Horse Brasil is investing $50 million in a new production line for casting aluminum engine heads at its Sao Jose dos Pinhais plant. This new facility will use a gravity casting process to produce cylinder heads for the company's 1-liter (HR10) and 1.3-liter (HR13) flex-fuel engines. The company plans to produce 210,000 heads annually and create 60 permanent jobs. The new line is scheduled to be fully operational by October 2026.
GM is set to launch its first ethanol-capable hybrid-flex vehicles in Brazil. Although GM did not specify the launch date for the hybrid-flex vehicles, a local union at its plant in Sao Jose dos Campos mentioned that the first model would hit the market in 2025.
Industrial equipment supplier Maquinas Furlan, which specializes in mining, construction, and agriculture, has announced investments of $10 million as part of its master plan until 2028. The first stage of strategic planning, starting in 2023, has received $1 million in investments. In 2024, the company plans to allocate more than $3 million to restructuring and expanding activities.
Tupy and Volkswagen Trucks and Bus have signed a contract to produce cylinder heads for MAN D26 engines. Tupy will be responsible for the complete manufacture of the cylinder heads used in Volkswagen's Meteor and Constellation lines of heavy trucks. This agreement covers the localization, operational management, and manufacturing of the 13-liter D26 cylinder heads and engines previously produced in Germany.
Earlier this year, Brazil passed the MOVER (green mobility and innovation) program. The program incentivizes automotive manufacturers to invest in sustainable technologies to reduce carbon emissions. Auto parts companies intend to invest $10 billion by 2028. This represents around 38.5% of the total investments announced by the OEM after the creation of the program, totaling around $45 billion. Component manufacturers will invest resources in updating production lines.
The renewal of the Centro-Atlantica Railway concession could generate around $6 billion. The proposal includes approximately $5 billion for modernizing the railway, acquiring wagons and locomotives, and increasing wealth movement by 46%, leading to around 10,000 direct jobs. Another $1 billion is being allocated for grants, compensation, and investments, including resolving urban conflicts and providing rail access to the Port of Aratu in Bahia. The plan also involves investments in new railway sections and branches, integrated solutions for road-rail conflicts, and boosting domestic rolling stock manufacturers.
Volkswagen has announced that it will allocate $3 billion in investment for its three units in Sao Paulo. This investment will be used for new projects focused on decarbonization, marking the arrival of the automaker's first domestic electrified vehicles.
