On Monday, the German automotive company, ZF Group, announced that it will invest 240 million euros to construct its third market plant in Queretaro. The new factory will span 80,000 square meters and is expected to generate over 1,300 new jobs. According to SiiLA Market Analytics, this development will increase ZF Group's industrial property portfolio by up to 30% gross leasable area (GLA), which had more than 270,000 square meters of GLA in different states of the Mexican Republic as of the fourth quarter of 2022.

ZF Group has been operating in Mexico since 1965 and established its first plant in El Salto, Jalisco, in 2001. Currently, the company has 16 factories in Mexico that manufacture various automotive products such as airbags, seat belts, steering wheels, brakes, electric suspension, shock absorbers, steering, and suspension, among others. The company employs more than 25,000 people in the country.

The local government announced that ZF Group's investment would position Queretaro as a modern market for developing automotive systems and specifically producing cable braking systems. ZF Group generates four billion dollars in annual sales in Mexico, with a quarter of that coming from Queretaro. However, with the addition of the new plant, the company expects its annual revenues in the state to triple.

Apart from this investment, ZF Group is building its first Research and Development Center in Nuevo Leon, where it aims to carry out cutting-edge projects for autonomous and electric driving, shaping the next generation of mobility. These 240 million euros investment by ZF Group contributes to the more than 1.6 billion dollars in foreign direct investment captured during 2022 in Queretaro, as per the Secretariat of Sustainable Development (SEDESU).

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