Sunday, December 22, 2024
HomeBusiness
Business

Xinquan Automotive to invest another US $100M in Aguascalientes

Cat Rainsford
By Cat Rainsford
2
Xinquan
Xinquan Automotive manufacture interiors for global luxury brands. Their Aguascalientes facility has proved a runaway success since it first opened in 2021. (Tere Jiménez/X)

Chinese Tier 1 supplier Xinquan Automotive has announced a US $100 million investment in its Aguascalientes plant, which is expected to generate 700 new jobs in the state – their second expansion announced this year. 

Xinquan, which manufactures car interiors for luxury brands, opened its facility in Aguascalientes in 2021 with an initial investment of US $40 million and capacity to produce 600,000 luxury car parts annually. The site has been so successful that this is the second time the company has decided to increase investment, after a previous $30 million expansion in March. 

The latest investment will be used to build a second production plant and an additional 10,750-square-meter warehouse in the San Francisco IV Industrial Park .

“Investing here was the best decision, and we want to put down roots in this land, where we hope to make positive contributions to the local economy, social development and job creation,” said Tang Zhihua, Xinquan’s global director at an investment announcement attended by several company executives and politicians.

The company’s original factory employed 400 people, rising to 1,000 after the first expansion. The new investment will bring this number up to 1,700.

“Xinquan will continue to grow under the clear sky of Aguascalientes; Mexico’s red dragon is the guarantee of success and good luck for Xinquan and Chinese investments,” said Aguascalientes governor Tere Jiménez.

The investment was announced by Mexican and Chinese grandees.
Xinquan upgraded their plant earlier this year after production exceeded expectations. (Tere Jiménez/X)

She highlighted that 12 Chinese-owned companies currently operate in Aguascalientes, providing more than 4,000 jobs in the auto, textile, service and clean energy sectors. China is also Aguascalientes’ third-largest export destination.

Manuel Alejandro González Martínez, Minister for Economic Development, Science and Technology, added that Aguascalientes ranks fifth in the country for exports and seventh for foreign direct investment. Thanks to its skilled labor force and other competitive advantages, the state will close the year with growth of more than 4% and 20,000 new jobs. 

With reports from Mexico Industry and Mexico Now

2 COMMENTS

Have something to say? Paid Subscribers get all access to make & read comments.
Floating rigs of a Pemex offshore oil drilling field, made possible by suppliers of goods and services

With state oil company Pemex behind on payments, small suppliers face financial crisis

MND Staff - 3
Small Gulf Coast subcontractors are struggling to pay Christmas bonuses and other end-of-year obligations, or even shutting down entirely.
the Bank of Mexico, which sets the country's benchmark interest rates (Banxico)

Bank of Mexico cuts benchmark interest rate to 10%

MND Staff - 0
Further rate cuts are expected in the new year as inflation declines across the country.
Female employees of a textile factory in Mexico. The women are at work, sitting in rows at tables with industrial sewing machines. They are wearing orange t-shirts and matching orange hats under which their hair is tucked.

Mexico to impose new protective tariff on finished textile imports

MND Staff - 5
The 35% tariff on finished textiles won't apply to the USMCA countries and appears to be an attempt to curb cheap clothing imports from China.

Mexico's English-language newspaper

About Us

ADVERTISE WITH MND

SUBMISSIONS

COMMUNITY GUIDELINES

Subscription FAQ's

Jobs

Contact

Privacy Policy

Mexico News Daily - Property of Tavana LLC