Monday, June 17, 2024

Chinese telecoms supplier YOFC opens first plant in Mexico

Chinese telecoms giant YOFC opened its first manufacturing plant in Mexico, investing 341 million pesos (US $19 million) to build the factory in the state of Jalisco.

YOFC’s plant in the city of Lagos de Moreno in northeastern Jalisco started operations this week and is expected to generate 203 jobs over the next two years.

YOFC, a global leader in the supply of fiber optics, optical cable and integrated solutions, already had a sales presence in Mexico via its sales offices. Now, the 19,515-square-meter production plant will manufacture optical fiber, cables and accessories for the Mexican telecommunications industry.

Production at the Lagos de Moreno plant will primarily be for the domestic market, but YOFC will also export to its other North America and Latin America markets.

Roberto Arechederra, Jalisco’s economic development secretary, said the first-of-its-kind plant will consolidate Jalisco as an epicenter of nearshoring, especially in the high-tech sector, according to newspaper Mexico Now.

Arechederra called YOFC a “highly relevant [company] in the high-tech industry” while claiming it demonstrates that “Jalisco is a force in foreign direct investment (FDI).”

A sign for the Mexican branch of the company YOFC, a telecoms manufacturer with a new plant in Mexico.
The new YOFC plant, its first in Mexico, is in Lagos de Moreno, Jalisco. (YOFC Mexico)

During the first quarter of 2024, foreign businesses invested more than US $593 million in Jalisco. That figure places the western state at No. 9 on the list of Mexican states attracting the most FDI during Q1. FDI hit a new record high in Mexico in the first quarter, surpassing US $20.3 billion, an increase of nearly US $1.7 billion over the same period in 2023.

While still devoted to the twin pillars of attracting investment and developing a high-quality workforce, the Jalisco government is also facing a transition as Governor Enrique Alfaro’s term ends on Sept. 30.

The handover process has yet to start, however, as the outcome of Sunday’s gubernatorial election remains in doubt.

With reports from Forbes México, Mexico Now, El Economista and El Financiero

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