Featured Image

International News From the Field: Auto and Tech Boom in Latin America

Sep 24, 2025

Brazil

For more information, contact Achilles Arbex (aarbex@AMTonline.org).

  • As demand for artificial intelligence data centers grows, so does the need for stable and reliable energy solutions. In response, Hitachi Energy announced an investment worth $175 million for a new transformer factory in Pindamonhangaba, Sao Paulo. The new plant will increase local power transformer production capacity, meet the demands of the growing technology landscape, and integrate more renewable energy sources.

  • Japanese multinational agricultural machinery manufacturer Yanmar will construct a new $56 million factory in Indaiatuba, Sao Paulo. The project, financed by their resources, will be implemented in three phases and completed in 2030.

  • TSEA Energia recently announced a $140 million expansion of its industrial unit in Contagem, Minas Gerais. The expansion, set to finalize in 2029, will double production capacity and strengthen its global presence. The plant will exclusively produce power transformers, incorporating advanced manufacturing processes, a high-voltage testing laboratory, and areas dedicated to innovation and technological development.

  • WEG announced its intention to expand its industrial and electric traction motor production capacity in Brazil over the next three years, starting with a $132 million investment in constructing a new electric traction motor factory in Jaragua do Sul, Santa Catarina.

  • Horse Brasil will invest an additional $110 million in its factory in Parana, in addition to its 100 million reais ($18.85 million) high-efficiency production operation built in 2023. This new investment is part of Horse's five-year investment cycle from 2023 to 2028, which is expected to reach a total of $173 million.

  • Chevrolet will assemble an electric car in Brazil at the former Troller factory. The project is part of GM's $1.4 billion investment cycle in Brazil.

  • Mining company Vale will reveal a $14 billion expansion of its operations in Carajas, Para. Ongoing projects at the Carajas complex include Compact Crushing S11D, which has a capacity of 50 million tons, an investment of $755 million, and is scheduled to begin operations in the second half of 2026; and N3 – Serra Norte, which has a capacity of 6 million tons per year and is scheduled to start in the second half of next year. The company also reported the near completion of Northern System 240 Mtpy, with an investment of $774 million and a capacity of 10 million tons. The company is also evaluating other projects in the Northern System, such as S11C and Serra Norte N1/N2, although the corresponding investment information hasn't yet been disclosed.

  • Avelo Airlines, the first U.S. airline to operate Embraer's E195-E2 aircraft, announced the purchase of up to 100 such jets in an order valued at approximately $4.4 billion. The model, scheduled to be delivered to Avelo beginning in the first half of 2027, is Embraer's largest and most advanced commercial jet. It has a capacity of 146 passengers in a single-class layout and a range of approximately 5,500 kilometers.


Mexico

For more information, contact Carlos Mortera (cmortera@AMTonline.org).

  • In 2024, the automotive industry invested around $24 billion in Mexico, including projects related to increasing capacity, plant expansions, new companies, and developing infrastructure. The United States, Japan, Germany, and China were the leading countries investing in Mexico, and the top five Mexican states attracting investment were Nuevo Leon (21.4%), Puebla (14.4%), Guanajuato (13.9%), Coahuila (13.4%), and Mexico state (11.9%).

  • According to INEGI, Mexico's manufacturing exports increased 5.3% in July, driven by key sectors such as machinery, special equipment, and electrical and electronic equipment.

  • Daikin, a Japanese air conditioning, ventilation, and refrigeration system manufacturer, announced a new $373 million plant in San Luis Potosi that seeks to consolidate its production capacity in Mexico, creating 3,500 additional jobs.

  • German auto manufacturer Kinpping recently announced an investment of $540 million and the creation of 5,000 jobs in Tlaxcala.

  • Kirchhoff Automotive opened a new $60 million plant in Guanajuato. The plant will specialize in new processes such as welding and e-coating and produce front-end modules, collision management systems, and rear bumpers.

  • Ampure, a U.S. manufacturer of electromobility solutions, invested over $4 million in a new production line in Guanajuato.

  • Sigma Alimentos, a Mexican company that produces and distributes refrigerated foods, announced an investment of $18 million to bolster its production in the state of Mexico.

  • SOMAR, a company dedicated to manufacturing pharmaceutical products, announced an $11 million expansion of its current production capacity in its plants in Mexico state.

  • Quanta Computer, a Taiwanese manufacturer of electronic devices, plans to increase its production capacity in Nuevo Leon with an estimated investment of over $1 billion, generating over 2,500 new jobs in the process.


To learn how to take advantage of Brazil's opportunities, please contact Achilles Arbex at aarbex@AMTonline.org.

For more information on taking advantage of Mexico's opportunities, please contact Carlos Mortera at cmortera@AMTonline.org or click here.

PicturePicture
Author
Carlos Mortera
Senior Director - Latin America
Recent international News
Major discoveries are announced in the energy, mining, and tech sectors of Latin American industrial powerhouses Mexico and Brazil, spurring more opportunities and foreign investment. For more industry intel and other tidbits, read on.
Thanks to strategic incentives, trade access, and an industrial investment boom, the two manufacturing powerhouses of Latin America are luring global companies to shift operations to them. For more industry intel and other tidbits, read on.
Mexico's open economy and strong U.S. trade ties offer strategic advantages, and Brazil boasts a large and diverse market, a growing digital economy, and opportunities in agriculture and manufacturing. For more industry intel and other tidbits, read on.
Expomafe, the top machine tool show in Latin America, opened in Brazil on May 6-10 to high expectations. Despite global uncertainty, Brazil continues projecting economic and industrial growth. For more industry intel and other tidbits, read on.
Brazil and Mexico continue to foster the development of Latin America as a global manufacturing region. The two industrial engines show strong opportunities in automotive, steel, beverages, and more. For more industry intel and other tidbits, read on.
Similar News
undefined
International
By Achilles Arbex | Aug 14, 2025

Major discoveries are announced in the energy, mining, and tech sectors of Latin American industrial powerhouses Mexico and Brazil, spurring more opportunities and foreign investment. For more industry intel and other tidbits, read on.

5 min
undefined
International
By Carlos Mortera | Jul 18, 2025

Thanks to strategic incentives, trade access, and an industrial investment boom, the two manufacturing powerhouses of Latin America are luring global companies to shift operations to them. For more industry intel and other tidbits, read on.

5 min
undefined
International
By Achilles Arbex | Jun 17, 2025

Mexico's open economy and strong U.S. trade ties offer strategic advantages, and Brazil boasts a large and diverse market, a growing digital economy, and opportunities in agriculture and manufacturing. For more industry intel and other tidbits, read on.

5 min