BorgWarner Invests $47 Million to Expand Saltillo Plant, Generating 450 New Jobs

BorgWarner, a global leader in vehicle parts manufacturing, recently announced its plant expansion in Mexico’s Saltillo industrial market. BorgWarner’s presence in Mexico has grown significantly over the past 50 years to include twelve distribution plants spread across Chihuahua, Coahuila, Guanajuato, Jalisco, San Luis Potosí, and Tamaulipas. The BorgWarner Saltillo plant expansion is in addition to two other existing locations in Coahuila, including Torreon and Ramos Arizpe. According to the SiiLA data and analytics platform Market Analytics, the BorgWarner Saltillo plant expansion follows a 2019 addition of 25.3 thousand square meters at the Santa Maria Industrial Park in Ramos Arizpe.

The demand for the industrial sector in Mexico remains strong. Specifically, Coahuila is quickly becoming a sought-after strategic location for leading companies in the automotive parts manufacturing sector. In addition to BorgWarner, at least four other players in the sector have recently announced the opening or expansion of their respective plants in the Saltillo industrial market including Fives Group, Matcor Matsu, MKDC Kodaco, and Phillips Industries.

SiiLA reports automotive manufacturers represent 55% of the total tenant base in the Saltillo industrial market. Today, the largest vehicle and parts corporations in the Saltillo market are General Motors, Stellantis, and Magna International. According to Governor Miguel Angel Riquelme Solis, investors' confidence, especially those related to the automotive industry, will allow Coahuila to become the capital of electro-mobility in Mexico in the short term.

One of the strengths of the Coahuila region for the automotive industry is the high concentration of a labor force with an expertise in environmentally friendly emissions technologies which are popular in North America. Soon General Motors will begin producing electric vehicles in the state. The BorgWarner Saltillo plant is focused on manufacturing products such as starter coils, gas recirculation coolers, and thermostats to optimize gasoline engines for low emissions standards.

The new BorgWarner plant expansion represents an additional investment of USD$47M dollars generating 450 new jobs in the region. BorgWarner's expansion will not only contribute to Coahuila's economy. It will also boost local supply and social development in several regions, partly because the company has a "permanent rapprochement" with state and municipal authorities. According to company executives, this situation allowed it to consolidate its new investment.

If you want more information about this topic or insights about Mexico's commercial real estate market, please visit SiiLA.com or contact us at contacto@siila.com.mx.