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International News From the Field: Mexico, Brazil, and Latin America

Latin America’s busiest markets are stronger and more vibrant than ever. Many sectors are seeing investments to create and expand capacity, which has led to great business opportunities. For more industry intel and other tidbits, read on.
Jun 08, 2023


For more information, contact Achilles Arbex (aarbex@AMTonline.org).

  • Stellantis is expanding its Goiana, Pernambuco, facilities with the development and production of a new Ram Rampage pickup truck in Brazil. The company explained that it was necessary to execute optimization projects in the logistics area to allow the inclusion of specific parts of the pickup, and plans are to supply domestic and South American markets with trucks built in Brazil in 2023. 

  • Sumitomo Rubber Industries plans to invest $213 million in its tire factory in Fazenda Rio Grande to supply the growing demand for commercial vehicle, truck, and bus tires. 

  • Sumitomo Hardmetal is expanding its operations in Brazil. The company recently announced plans to install a tech center in the Campinas area to accommodate the growth of its cutting tools division. Established in 2013, Sumitomo Hardmetal recorded steady growth, having recorded 10-times bigger revenue since its incorporation in the country. 

  • Bosch is kicking off a new investment cycle in Latin America. The company plans to invest an additional $190 million in renewing facilities and getting adjusted to digitalization standards in 2023, totaling $325 million invested in the region in just two years. The investment will be directed to Bosch’s automotive, mining, agricultural, and power tools divisions. Brazil is Bosch’s largest market and production base, accounting for 74% of regional sales (or $1.6 billion), exporting to North American, Latin American, and European markets. Bosch plans to reach $4 billion in revenue by 2030 with the new investment. 

  • Inpasa Group, one of the world’s largest ethanol producers, announced the acquisition of 50 train carriages and two locomotives from Greenbrier Maxion in a $20-million transaction. Plans are to increase transportation volume to 1 billion liters per year. The new fleet will be operated by Rumo Logistica, reducing the circulation of approximately 17,000 trucks a year and consequently reducing emissions. Train carriages and locomotives will be produced at Greenbrier Maxion’s facilities in Hortolandia, Sao Paulo. 

  • Electrolux will invest $140 million to construct a new manufacturing facility in Sao Jose dos Pinhais, Parana. The company plans to be fully operational by the end of 2025, expanding its production capacity to accommodate the growing demand for refrigeration systems and supplying domestic and Latin American markets. 

  • OSG announced plans to make its most significant investment in the Brazilian market. The company didn’t reveal figures, but the project will impact all Braganca Paulista factories by installing new production lines and expanding coating capabilities and current manufacturing lines. Products imported from Japan will now be produced locally while regrinding capabilities will be expanded. The domestic market keeps growing, while approximately 40% of production is exported to the United States and Mexico. 

  • Vale, the Brazilian mining company, has signed a memorandum of understanding with XCMG, a major Chinese mining and construction equipment manufacturer, to codevelop the world’s first zero-emission motor grader for mining operations. The machinery utilized for leveling mine access and transportation routes will be tested at mines in the Brazilian states of Minas Gerais and Para. If approved after testing, Vale intends to purchase several models in the next few years. Vale is currently testing two XDR80TE electric off-highway trucks manufactured by XCMG in Brazil and Indonesia. XCMG has also cooperated with Rio Tinto in the past and produced several models of graders. Graders are increasingly critical in Vale and Rio Tinto’s operations, particularly as both mining giants operate autonomous haul trucks. 

  • Toyota will invest $334 million to produce a new compact hybrid vehicle powered by biofuel. Brazil is home to a growing number of so-called flex-fuel vehicles that run on either all bioethanol, all gasoline, or a mixture of both. So far, Toyota has only rolled out flexible fuel hybrids within its flagship Corolla series. Toyota will be making the investment at its Sorocaba plant in the state of Sao Paulo. According to the Brazilian Association of Automotive Vehicle Manufacturers, Toyota produced 224,133 vehicles in Brazil in 2022, up 30% from the prior year. The investment will be made at its Sorocaba plant in Sao Paulo state. 

  • As crop expansion continues in Brazil, Agrishow, one of the world’s largest agricultural machinery shows, reached a new record, generating $2.4 billion in business in just five days. Brazil’s GDP has grown 1.9% in the first quarter, reaching $520 billion. In the last 12 months, Brazil has seen a 3.3% growth, which was positively impacted by agriculture’s impressive 21.6% growth, its best quarter in 26 years. 


For more information, contact Carlos Mortera (cmortera@AMTonline.org).

  • Chinese company Tecco invests $42 million in its new plant in San Luis Potosi to manufacture molds and equipment for tires as a supplier to Pirelli, Michelin, Continental, and Bridgestone. 

  • Kia confirms new investment in its Nuevo Leon plant and announces the production of a new electric car as part of its strategies to attract investment and care for the environment.  

  • Tupy, a Brazilian company dedicated to manufacturing gasoline engines and auto parts, will invest $36.8 million in Ramos Arizpe, Coahuila, to expand its operations. 

  • Schneider Electric will invest an additional $73 million to promote the development of Tlaxcala, Nuevo Leon, and Mexico City to satisfy the demand of the North American market. The investment will be focused on energy sustainability and efficiency software for companies who want to nearshore in Mexico.                   

  • Brembo, the Italian brake manufacturer for the automotive industry, announced an investment of $207 million to expand its production capacity in its plant located in Nuevo Leon, Mexico. 

  • FESTO will invest $100 million in a new plant in renowned industrial park Interpuerto Monterrey. The company will offer automation solutions to sectors such as automotive, mining, pharmaceutical, and electronic. 

  • HL Mando announced an investment of $185.3 million to open a new plant located in Coahuila, Mexico. The facility will focus on manufacturing brake systems for the automotive industry.  

  • Ternium Mexico will invest $1.94 billion in the expansion of its industrial center to produce semi-finished steel products (slabs) in Pesqueria, Nuevo Leon, which will be sold to assemblers and auto parts manufacturers to comply with the USMCA rules of origin. 

  • Taxan, a Japanese manufacturer of electronic cards for the automotive and appliance industries, announced an investment of $40 million for a new plant in San Luis Potosi, Mexico. This will increase their production to over 1 million cards per year. 

  • BorgWarner announced investment in electromobility at its campus in Ramos Arizpe. Plans are to invest $54 million in the expansion and development of products for the electric vehicle market and seek talent specialized in electromobility applications in Mexico. The site will produce innovative battery cooling plates for an automaker's next generation of electric vehicles. 

  • Optibelt, a German company specializing in producing transmission systems and the aftermarket, has announced an important investment in the San Juan del Rio, Queretaro region. With an investment of $85 million, the company seeks to strengthen its presence in the automotive industry and significantly impact the local economy, with the projection of creating 250 direct jobs by 2027. 

  • Metso Outotec is investing $39.9 million in a new filter plate factory in Mexico. Guanajuato’s current administration has seen 116 investment projects completed, representing more than $5.4 billion, and the generation of more than 44,000 jobs.   

  • Chinese Ningbo Xusheng Group, which is committed to the field of new energy vehicles and light cars, announced an investment of $350 million to install its first plant in Mexico and North America, located in Saltillo, Coahuila. 

  • The Automotive Directory’s automotive investment report covering the first quarter of 2023 indicates that the sector registered $7.455 billion in investments during the first quarter. Nuevo Leon and San Luis Potosi are positioned as the leading recipients. 

Carlos Mortera
Senior Director - Latin America
Recent international News
The automotive and aerospace industries in Mexico and Brazil increase activity. While automotive drives growth in the two major economies of Latin America, agriculture, energy, and others see investments. For more industry intel and other tidbits, read on.
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