China’s Lingong Mexico plant to generate US$5 billion in investment
- Lingong Machinery Group (LGMG) will establish an industrial estate in Mexico’s northern Nuevo Leon state and aims to create three industrial clusters
- Last week Japanese motorcycle maker Kawasaki said it will invest US$200 million in Nuevo Leon to set up a production plant
The LGMG project aims to create three industrial clusters designed for processing and manufacturing, warehousing and logistics, and business support services, the company and government of the state of Nuevo Leon said.
Touted by Nuevo Leon Governor Samuel Garcia in a post on X, formerly known as Twitter, around 120 enterprises are expected to take part in the project that will generate an estimated 7,000 local jobs.
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The Mexican government is striving to attract companies wishing to shift offshore operations closer to their customers in North America. Last week it announced investment deductions of 89 per cent to 56 per cent for these companies.
The first phase of the project will be launched this month with land acquisition. Construction is set to begin in December.
The Chinese company is the latest to announce investment plans in Nuevo Leon, which borders the US state of Texas, joining Japanese motorcycle maker Kawasaki, which said last week it will invest US$200 million in the state to set up a production plant.
