California-based Cisco Systems Inc. will invest up to US $4 billion in Mexico through 2018 to expand production, the government said in a statement yesterday.
The largest manufacturer of internet equipment will upgrade factories and increase production through contract manufacturers, reported Bloomberg.
The investment will create 270 new direct jobs and 77 indirect ones at Cisco, and another 4,830 direct jobs at suppliers’ factories, along with 1,105 indirect positions.
Mexico is getting the new jobs despite a 7% reduction in the company’s work force worldwide. Cisco announced the cutbacks, which will eliminate about 5,500 jobs, six weeks ago.
A consultant told Bloomberg that the company’s plans for Mexico indicate that Cisco is not overly concerned over any possible negative reaction from U.S. presidential candidate Donald Trump. Alejandro Schtulmann of Empra said Cisco was also announcing “they have confidence in Mexico despite the problems the country is facing.”
Cisco CEO Chuck Robbins said after a meeting with President Enrique Peña Nieto yesterday afternoon that the new production facilities will supply products to more than 110 countries, adding that Mexico “is rapidly becoming one of Latin America’s economic success stories.”
Among those products will be routers, servers, switches, videoconferencing screens and wireless access points.
The new investment is among the five biggest in Mexico since Peña Nieto took office in December 2012.
The company began operating in Mexico in 1993 and has 1,000 employees here.