Drive and control technology supplier Bosch Rexroth will expand its presence in North America with new plant in Mexico.
Bosch Rexroth has been successfully operating in Mexico for 40 years. In Querétaro, local production capacities for the manufacturing of products and components for mobile applications, as well as for factory automation, will be increased as of summer 2023, and there is space for further growth. Bosch will invest some $160 million in the new site.
The aim is to strengthen local production for the North American market and be able to serve customers even better and more efficiently in the future.
Bosch Rexroth has been present in North America since 1967. At its locations in the U.S. and Canada, the company employs a total of around 2,200 people. Around 170 people currently work for Bosch in Mexico.
The new 452,000-square-meter site in Querétaro is expected to open in mid-2023 and will employ more than 900 associates after its commissioning in 2027. The products manufactured in Querétaro are mainly intended for export to the U.S. and Canada. The new Bosch Rexroth plant adds to the series of investment announcements made by Bosch Mexico in recent months.
“We see great potential in the North American market for mobile applications, such as agricultural or construction machinery, and we produce the corresponding components, such as hydraulic pumps," said Bosch Rexroth North America CEO Greg Gumbs. "As part of our 'local for local' approach, we will further enhance our existing mobile hydraulics site in Fountain Inn, South Carolina. We will intensify the development work for the electrification of mobile machinery and the associated software activities. Fountain Inn will become an even stronger and more customer-centric hub for our mobile hydraulics business in North America. The new plant in Querétaro will create additional production capacities."
In addition, Bosch Rexroth wants to increase its market share in factory automation in North America. With the establishment of corresponding production capacities in Querétaro, adding to the existing Linear Technology Customizing Center in Charlotte, the company can optimally serve its North American customers.
“With this setup, we will also improve our competitiveness by reducing the need for transatlantic transports. We are becoming more flexible in handling customer inquiries, expanding our portfolio in the areas of prototype construction, customizing and service, and will be able to build a more robust regional supply chain,” Gumbs said.