Tuesday, July 23, 2024

Bobcat breaks ground on US $300M plant in Nuevo León

Leading Korean-owned construction equipment firm Doosan Bobcat has begun construction of a new manufacturing plant in northern Mexico.

With a planned investment of US $300 million, the new plant in Salinas Victoria, near the city of Monterrey, Nuevo León, will manufacture the Bobcat ‘M-Series’ compact loaders to meet the increasing demand in the North American market.

Nuevo León Governor Samuel García shakes hands with Doosan Group CEO Geewon Park and Doosan Bobcat CEO Scott Park, at the groundbreaking of Doosan Bobcat's new manufacturing plant in Mexico.
Nuevo León Governor Samuel García shakes hands with Doosan Group CEO Geewon Park and Doosan Bobcat CEO Scott Park. (Gobierno de Nuevo León/X)

The 65,000-square-meter factory is expected to commence operations in 2026 and create between 600 and 800 new jobs. According to the company, the plant will seek a LEED Silver energy efficiency certification and will feature state-of-the-art technology.

“The new plant in Mexico will support Doosan Bobcat’s continuous growth by responding to the increasing demand for Doosan Bobcat products, including its largest market, North America,” Geewon Park, Vice Chairman of Doosan Group said during the groundbreaking ceremony. (Doosan Group bought Bobcat Company in 2007.)

Doosan Bobcat executives and local government officials, including Nuevo León Governor Samuel García, attended the ceremony.

The new manufacturing plant is the company’s first production facility in Mexico, joining Doosan Bobcat’s existing global production sites in Korea, the U.S., the Czech Republic, France, Germany, India and China. Once the Mexico plant is operational, Doosan Bobcat expects it to increase the production of North American loaders by about 20%.

Government and company officials hold shovels and pose with Bobcat construction equipment at manufacturing plant groundbreaking ceremony.
Government and company officials pose at the groundbreaking ceremony. (Gobierno de Nuevo León/X)

The company explained that it chose Mexico as the location of its new plant because it “offers the benefits of the US-Mexico-Canada Agreement (USMCA), a strong manufacturing infrastructure, and a skilled workforce, making it an ideal global production hub.” It added that they specifically chose Nuevo León due to its accessibility as the “industrial capital of Mexico.”

Other Asian companies that have recently announced major investments in Nuevo León include Japanese motorcycle maker Kawasaki and Chinese solar panels manufacturer Trina Solar. Tesla also plans to build its new gigafactory in the northern state.

Nuevo León has been one of Mexico’s leading destinations for foreign investment. According to recent figures from the Economy Ministry (SE), Nuevo León received US $1.35 billion in FDI during the first quarter of the year, second only  after Mexico City, which reported  US $12 billion in FDI in the same period.

With reports from El Economista 

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