Monday, June 24, 2024

Xinquan Automotive to invest another US $100M in Aguascalientes

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

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