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Austrian firm to invest over US $100M in expanding Guanajuato plant

MND Staff
By MND Staff
1
ZKW manufactures lighting systems for a variety of luxury car brands. (Gerardo Trujillo/X)

Austrian lighting systems specialist ZKW Group announced the expansion of its plant in Guanajuato by a further 100 million euros, or US $107.6 million.

The move comes as part of the group’s strategic orientation towards the United States vehicle market. In a press release, ZKW announced the opening of the third phase of expanding its Mexican plant in Silao, near Guanajuato city. The expansion will cover an additional 15,700 square meters and was inaugurated with a ceremonial opening on Nov. 29.

The Austrian manufacturer is hoping to expand operations in North America, and will nearshore in Mexico as a result. (ZKW)

In the same statement, the group announced that groundbreaking had already taken place on its next expansion phase: an additional 7,000 square meters of production space intended to generate 1,100 new jobs by 2025. ZKW’s current and upcoming plant expansions through 2025 represent an investment of over 100 million euros. 

“With the expansion, we are increasing production capacities and creating around 2,000 new jobs to manufacture innovative lighting systems for customers in the strategically important NAFTA economic region,” said Dr. Wilhelm Steger, CEO of ZKW Group.

ZKW currently employs 1,658 people in Mexico. Since 2016, its Silao plant has produced lighting systems for automakers such as BMW, General Motors, Mercedes Benz and Volvo. Starting in 2025, it will produce headlights and center lamps for Volkswagen and General Motors in Silao. 

The group considers North America to be a strategically important market which has the potential to become the second-largest market for the company by 2028, accounting for around 30 percent of its sales. 

According to Dominique Boulegue, General Plant Manager for ZKW México, the company’s long-term goal is to strengthen its growth strategy in the North American market and employ up to 4,000 people by 2026.

Mexico News Daily

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