Monday, May 20, 2024

Nexteer Automotive to build engineering campus in Querétaro

Nexteer Automotive, a Michigan-based company that develops motion-control technology, will expand its operations in Mexico. 

Nexteer announced its plans to build an engineering center in Mexico’s central state of Querétaro, known for its innovative industry and its position in the global automotive supply chain.

The new facility, expected to be completed in 2026, will serve as the hub for Nexteer Mexico’s engineering activities. It will provide local support, including prototyping, product validation, testing and vehicle systems integration.

Nexteer also plans to relocate 13 metal-mechanical suppliers from China to Mexico over the next two years to strengthen its supply chain.

According to Nexteer’s President Robin Milavec, the new Mexico Technical Center (MXTC) will create more than 350 new jobs by 2026 and increase the company’s local presence by 8,350 square meters. 

The venture will require a US $20 million investment. 

“Nexteer’s new, state-of-the-art Mexico Technical Center supports our strategy for creating a diversified and balanced approach across our products, customers and footprint by expanding our engineering capabilities to more effectively and efficiently serve our OEM customers’ needs in Mexico,” Milavec said in a statement.

Nexteer has five plants in Mexico — three in Querétaro and two in Ciudad Juárez. Across their five facilities, Nexteer employs 3,200 people, 2,100 of whom work in Querétaro. 

Like an increasing number of foreign companies, Nexteer is beginning to bring more of its resources to Mexico. According to Abiel Villarreal, vice president and COO of Nexteer Automotive México, the company relocated two suppliers from Asia in 2023.

“We had a meeting with all of our suppliers inviting them to come to Mexico,” Villareal said. “As we have a global presence, we have many suppliers in China, and we’ve invited them to relocate.”

With reports from Diario de Querétaro and El Economista

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