Sunday, July 13, 2025

Chinese heavy machinery manufacturer to invest US $80M in Nuevo León

A Chinese company ranked No. 3 in the world among manufacturers of heavy machinery and construction equipment has announced intentions to build a second plant in the state of Nuevo León.

Xuzhou Construction Machinery Group (XCMG), which arrived in Nuevo León in 2022, said its new plant will be in Ciénega de Flores, a municipality near Monterrey that has also had a large Bridgestone tire factory since 2007.

It is hoped the new site will create up to 300 new jobs. (XCMG)

Media reports said the new plan will see investment of US $80 million and create 300 new jobs in the state.

Making the announcement at its annual meeting, XCMG noted that it has already created more than 100 jobs in the state. Its current plant in Escobedo, a section of Monterrey with a big industrial park, makes scissor lifting platforms for the North American market.

Another Chinese company, the Lingong Machinery Group (LGM), announced in September that it, too, will manufacture scissor lifts, vertical lifts and boom lifts starting this year in a new 10-hectare industrial park in Nuevo León. Media reports said the company will invest  $5 billion in a formidable, multi-pronged project that will create 7,000 new jobs.

“When a company decides to expand its operations, we [describe] the unique competitive advantages that Nuevo León offers to investors,” said Iván Rivas Rodríguez, the state’s economy minister.

Iván Rivas at press conference
Nuevo León’s Economy Minister Iván Rivas at a press conference announcing the XCMG investment in his state. (Sec de Economía NL/X)

Chinese furniture manufacturer Kuka Home Mexico is on board. Three weeks ago, it announced plans to expand its plant in Nuevo León, which it said is expected to create more than 4,000 jobs.

XCMG ranked as the third largest original equipment manufacturer (OEM) in the world in 2023, by the KHL Yellow Table, an annual ranking of the world’s top 50 OEMs by sales figures. 

Its sales in 2023 were $13.41 billion, placing it behind only Texas-based Caterpillar ($37.54 billion) and Japan-based Komatsu ($24.65 billion), but ahead of Illinois-based John Deere ($12.53 billion).

XCMG is headquartered in Xuzhou, a city of more than 9 million in China’s northwestern Jiangsu province. The company has more than 40 plants and six research and development facilities in Germany, the United States, Brazil, India and elsewhere.

It manufactures loader cranes, lifters, excavators, concrete mixer trucks and tractors.

With reports from Expansión and El Economista

Have something to say? Paid Subscribers get all access to make & read comments.
meat counter

Inflation eases in June, but not enough to rule out a slower rate-cut pace

0
The positive news was tempered by an accelaration of core inflation, suggesting that Mexico's central bank might end its four-month streak of 50-basis-points rate cuts.
skyscraper with Barceló logo

Mexico attracts US $3.7B in Spanish investment in Q1 2025 following record 2024

0
First-quarter investment figures provide further evidence of Spain's growing confidence in Mexico, after Spanish firms invested €3.3 billion (US$3.86 billion) in 2024.
household spending Mexico

US tax on remittances could reduce household spending by 25%, says ANPEC

0
The president of the National Alliance of Small Business Owners (ANPEC) warned that the new 1% tax on cash remittances sent from the U.S. to Mexico could devastate domestic consumption.
BETA Version - Powered by Perplexity