Tuesday, September 17, 2024

Gulfstream to invest US $370M in Mexicali plant

Gulfstream Aerospace Corporation has announced a US $370 million investment to build a new plant in the northern city of Mexicali, Baja California, as reported by Governor Marina del Pilar Ávila Olmeda.

The 540,000-square-foot plant will be the company’s second manufacturing facility in the state and will create 1,500 specialized jobs, bringing the company to more than 5,000 employees in Baja California.

Governor Marina del Pilar Ávila Olmeda with representatives of Gulfstream.
Baja California Governor Marina del Pilar Ávila Olmeda with representatives of Gulfstream. (Marina del Pilar/X)

The announcement was made during a meeting attended by  John Ortega, vice president of Gulfstream; Mark Bennet, global director of institutional relations at Gulfstream; and Kurt Honold Morales, economy and innovation minister for Baja California.

“Gulfstream’s expansion in Mexicali marks a significant milestone for our operations in the region. We are excited about the new opportunities this investment will create and are eager to further contribute to the local economy,” Ortega said at the meeting. 

Gulfstream opened its Mexicali plant, currently the company’s only plant in Mexico, 30 years ago. The manufacturing site makes electrical wire harnesses, sheet metal components, sub-assemblies and machined parts.  

“This new facility will enhance our production capabilities and reinforce our commitment to Mexicali and the broader Baja California region,” added Mark Bennet.

No further details have been given about the new site’s construction or its production outlook. 

The aviation and aerospace industry in Mexico is one of the three largest manufacturing industries in Mexico today.

Its market size is estimated at US $2.58 billion in 2024 and is expected to reach US $2.96 billion by 2029. The state with the largest aerospace industry in the country is Baja California, also considered the birthplace of the aerospace industry in Mexico. 

The first foreign aerospace company to invest in Mexico was Hughes Aircraft, which opened over 40 years ago in Mexicali. Since then, 28 aerospace companies have been established in Baja California including United Technologies Aerospace Systems, Honeywell, Safran, Collins Aerospace and others. 

According to the Economy Ministry (SE), in the first six months of 2024, Mexico received US $161 million in foreign direct investment (FDI) in the aerospace manufacturing industry.

With reports from Mexico Business and El Universal

Have something to say? Paid Subscribers get all access to make & read comments.
Los Cabos playa Medano

5 tips for budget-friendly travel in Los Cabos

0
How do you grab yourself a slice of Los Cabos luxury at an affordable price and where do you find it?
Map of Mexico formed with Mexican peso bank notes

What’s next for the peso? A perspective from our CEO

24
The Mexican peso has had a volatile few months and weakened to over 20 to the US dollar this week. Travis Bembenek considers what's coming next.
A Coca Cola distribution truck drives down a Mexican street

Coca-Cola suspends distribution in southern Morelos after kidnapping incident

3
Coca-Cola FEMSA has temporarily closed it's distribution center in Puente de Ixtla until "security conditions are guaranteed."