Mexico
Mexico's Bajio region remains one of the most active manufacturing corridors in North America, and the latest wave of investment reinforces that standing. German supplier Linde + Wiemann's inauguration of its first Mexican production facility at the WTC Industrial Park in San Luis Potosi is a $45 million commitment focused on complex structural components and assemblies for major OEMs. It adds another link to a supply chain that has been thickening for years. San Luis Potosi has positioned itself as a reliable automotive manufacturing destination, and new entrants like Linde + Wiemann validate that strategy.
Guanajuato is similarly active. The inauguration of Helvex's new high-tech materials plant in Apaseo el Grande, backed by a $20 million investment, reflects a broader pattern of industrial diversification in a state historically anchored in the automotive sector. Meanwhile, Flex's opening of a second facility in Aguascalientes, a 44,000-square-meter plant dedicated to advanced electronic components for automotive and next-generation mobility, underscores the growing importance of electronics manufacturing within Mexico's automotive ecosystem. Flex already employs thousands in the state, and this expansion deepens its role as a regional hub for global customers.
In Queretaro, Phoenix Contact, a German industrial technology company, has inaugurated a new $95 million plant in El Marques, one of the more significant recent commitments to the state and a sign that Queretaro's reputation as a hub for advanced manufacturing and industrial technology is resonating with European firms.
On the electric vehicle front, JAC Motors is expanding production capacity at its Ciudad Sahagun plant in Hidalgo by 30%, adding flexible lines for electric SUVs and commercial vehicles. The move reflects the accelerating shift among automakers to build EV production flexibility into their Mexican facilities ahead of anticipated demand growth in 2026-2027.
Nuevo Leon rounds out the picture with a $167 million investment from South Korean firm DH Autoware, which is establishing a new facility in Santa Catarina to manufacture advanced motherboards for Hyundai and Kia vehicles. The announcement consolidates Monterrey's emerging identity as a high-tech automotive electronics hub, a role that positions the metro area for the kind of higher-value manufacturing that the broader nearshoring wave has been building toward.
Brazil
Meanwhile, Brazil's investment story this period is anchored by two large-scale commitments that reflect the country's growing role in energy infrastructure. Hitachi Energy has announced a $150 million investment in power transformation capacity in Latin America, with the majority allocated to its existing plants in Pindamonhangaba and Guarulhos. The investment signals sustained demand for grid infrastructure across the region as energy transition projects multiply.
ArcelorMittal has completed a $1.1 billion project in Varzea Nova, Bahia, building out solar energy generation and wind power capacity, a commitment of a scale that speaks to both the ambition of Brazil's renewable energy transition and the role major industrial players are taking in driving it.
On the trade side, Brazil's commercial relationship with China reached a record high in 2025, with bilateral trade surpassing $170 billion and accounting for more than 28% of Brazil's total foreign trade. The relationship spans electricity, mining, oil, manufacturing, services, and agriculture, a breadth that reflects deep structural integration between the two economies rather than a narrow commodity exchange.
Smaller but notable investments are also in motion. Special Dog Company's $57 million expansion in Mateus Leme, Minas Gerais – focused on extrusion and molding technologies for pet food production – is a reminder that Brazil's manufacturing investment story extends well beyond heavy industry. And Brazil's industrial production grew 0.9% in February compared with January, a modest but market-beating figure that suggests the country's factory sector is holding its footing.
Taken together, the investment activity across Mexico and Brazil reflects two economies that continue to attract diverse capital, from automotive electronics and structural components in Mexico to energy infrastructure and agri-food manufacturing in Brazil. The pipeline shows little to no sign of slowing.
For more information on taking advantage of Mexico and Brazil’s opportunities, please contact Carlos Mortera at cmortera@AMTonline.org or click here.
