Danfoss set to grow workforce by 25% following the completion of its new manufacturing plant in Apodaca, Monterrey

The development boom continues in Apodaca, with the announcement of a new plant for Danish industrial manufacturing company Danfoss. In recent years the thriving real estate submarket located in Monterrey, Nuevo Leon has attracted the attention of major players including Prologis, Vesta, Finsa and Fibra Monterrey. Industrial parks such as Apodaca Technology Park, FlexPark Apodaca Industrial Park, and Prologis Agua Fria Park have benefited from strong growth in the manufacturing sector, specifically electronics, and vehicle parts manufacturing. The Apodaca submarket first recorded significant growth in 2020 with a 19% YoY increase in new inventory. SiiLA Market Analytics data shows the Apodaca submarket now accounts for almost 40% of the industrial real estate inventory in the La Sultana del Norte metro area.

Danfoss has been operating in Mexico since 1995, with plants in Nuevo Leon, Queretaro, and Reynosa, as well as offices in Mexico City. The construction on the company’s new 20,000 square meter build-to-suit plant broke ground on March 15th with a target completion date of year-end 2024. Ivan Rivas, state Secretary of Economy, highlights in a recent press release the addition of 400 new jobs from Danfoss will contribute to the 34,047 jobs already generated in Nuevo Leon during January and February, securing the region's first-place position nationally in job creation.

The Danfoss Apodaca plant will manufacture refrigeration and air conditioning system parts with an annual production capacity of 100,000 compressor units, 1.6 million pressure sensors, and one million A2L leak detection sensors. Xavier Casas, general manager of Danfoss Mexico, expressed pride in the company's investment in Mexico, saying that it demonstrates Danfoss's commitment to the country and confidence in the region's skilled workforce.

The market dynamics remain strong in the Apodaca submarket, with 1.5 million square meters of new industrial facilities projected to be delivered by year-end 2023. According to SiiLA Market Analytics, prior Danfoss built-to-suit facilities have been sold to notable players such Fibra Monterrey who purchased a Danfoss occupied Nuevo Leon plant in 2014 for MXN $2.7M at a 8.05% cap rate.

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