German automotive supplier ZF Group will build a new US $194 million plant in the northern city of Ciudad Juárez, Chihuahua, to expand its e-mobility business in North America.

With over 22,000 square meters and an initial investment of US $150 million, the new plant will increase the production capability of the company’s current facilities in Ciudad Juárez. It expects to employ some 500 people in the next four years and begin production in 2024. 

With 16 plants in Mexico, the multinational company employs more than 25,000 people in the country and manufactures everything from airbags and seat belts to steering wheels and brakes, as well as suspension systems. The company currently employs some 7,000 people in Chihuahua, where it manufactures steering wheel systems and airbags.

“The e-mobility market continues to gain momentum in all major markets, and ZF is investing to match the growth trajectory in North America,” vice president of electrified powertrain technology John Hawkins said. 

He added that the investment in Ciudad Juárez will further establish ZF as a leader in advanced e-mobility technologies and as investors that are significantly contributing to the efficiency and range of electric vehicles.

The new plant is one of the latest in a growing list of the company’s investments in Mexico.

In February, ZF Group also announced it would invest 245 million euros (US $266.18 million) into the opening of a distribution center and expanding existing facilities near the city of Querétaro that manufacture brake safety systems and aims to create US $1 billion of the US $4 billion of sales by ZF in Mexico. 

The company is also building a research and development center in Nuevo León. According to the group, this research center will carry out “cutting-edge projects for autonomous and electric driving.”

With reports from El Economista and Mexico Industry.