Korean EV parts manufacturer invests US $25M in Coahuila

South Korean electric vehicle parts manufacturer Doosung Tech will invest US $25 million to open a factory in Monclova in the northern state of Coahuila, Mexico. The initial phase of operations is expected to create 200 jobs.

“This is excellent news for Monclova, not just for the jobs that will be created, but also for the quality and competitive salaries the company will provide,” said Mayor Mario Dávila, according to the regional newspaper El Siglo de Torreón.

Doosung Tech, which specializes in advanced technological solutions in the fields of automation and manufacturing, will produce electronic components for electric vehicle batteries at the plant located in the city of Monclova, according to the newspaper El Financiero.

These products are primarily aimed at the United States and Latin American markets. 

The strategic location — Monclova sits roughly three hours south of the border with Texas, skilled labor and industrial infrastructure were key factors that influenced the Korean company’s decision to establish itself in the city, according to the news site Mexico Now.

The new plant is important for Monclova as city leaders have sought to diversify the local economy and strengthen its industrial sector, according to industry news site Cluster Industrial. 

Local authorities say they hope this investment helps attract other automotive and technology companies as they seek to position Monclova as a key player in the growing electric vehicle sector. 

Another hope is that the Doosung Tech operations can serve as a magnet for specialized manufacturing, particularly in the clean and sustainable energy sector.

Mayor Dávila told reporters that other companies have shown interest in establishing operations in Monclova, which could lead to the creation of between 500 and 1,000 additional jobs by 2025, he said.

With reports from El Financiero, Cluster Industrial, La Prensa de Coahuila, Mexico Now and El Siglo de Torreón

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