MEXICO CITY (Reuters) – China’s Lingong Machinery Group (LGMG) will establish an industrial park in Mexico’s northern state of Nuevo Leon that is expected to generate $5 billion in investments, according to a joint statement on Monday.
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.
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%-56% 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 U.S. state of Texas, joining Japanese motorcycle maker Kawasaki, which said last week it will invest $200 million in the state to set up a production plant.
(Reporting by Daina Solomon; Writing by Valentine Hilaire; Editing by David Alire Garcia and Richard Chang)