Saturday, June 15, 2024

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.
PCB board

Mexico looks to prioritize development of semiconductor industry

0
The country is further solidifying efforts to promote the semiconductor industry as part of the North American supply chain.
Peso and dollar bills

Peso plummets to nearly 19 to the US dollar, then makes slight recovery

10
Governor Victoria Rodríguez said Wednesday that while the Mexican economy is solid, the Bank of Mexico could take action in case of "extreme volatility."
Puebla Governor Sergio Salomon and Audi Mexico President Tarek Mashour shaking hands in front of a temporary wall with the Audi logo.

Audi to invest over US $1B to build EVs in Puebla

2
Audi says it will expand an existing Puebla factory in order to begin manufacturing the German automaker's electric vehicles in Mexico.