Minth México, a subsidiary of the Taiwanese auto parts company Minth Group, announced plans to build two new plants in the central state of Aguascalientes on Monday.

The two factories, one of which will produce batteries for electric vehicles, the other for paint processes, will generate about 1,600 jobs. Minth expects to invest US $173.5 million to build the plants.

A company spokesman told reporters the new facilities will focus on producing battery housings and aluminum parts for electric vehicles, and will include state-of-the-art technologies that will allow for advanced paint injection and plastic molding techniques.

The decision to make the new investment came after state officials met with executives at the company’s headquarters.

As a result, Minth voiced “interest in continuing to collaborate to ensure the growth and sustainability of its operations in the state.”

Aguascalientes is a hub of the automotive industry in Mexico. There are 10 assembly plants in the north-central state, including two Nissan factories and a Cooperation Manufacturing Plant (Compas), a joint venture between Mercedes-Benz Group and Nissan. Each company invested US $1 billion for the construction and operation of the plant.

Co-Production International (CPI), a certified ISO company that specializes in establishing and managing manufacturing operations in Mexico, is bullish on Aguascalientes. 

CPI describes it as a “strong and mature manufacturing state … with a highly efficient and productive workforce with low turnover” while also pointing out that there has not been an industrial strike there in 48 years. Aguascalientes is also viewed as a financially secure location for investment. Standard and Poor’s and Fitch both rate the state as AA+, one step below the maximum rating of AAA, according to CPI.

Once operational, the new plants will bolster the state’s transition to a greener and more sustainable automotive industry by promoting clean technologies, according to the government. In conjunction with this expansion, the state is considering building housing developments that feature charging stations for electric vehicles.

State officials also said they are working with the Federal Electricity Commission (CFE) to build two new electrical sub-stations — one to be completed in August — to guarantee supply and attract new investors.

Minth Group, founded in Ningbo, China, in 1992, opened its first facility in Mexico in 2009.

With reports from El Heraldo, El Sol del Centro and Mexico Now