Lingong Machinery Plant to Secure $5 Billion in Investments

According to a joint statement issued on Oct 16, China's Lingong Machinery Group (LGMG) will establish an industrial park in Mexico's northern state of Nuevo Leon that will generate $5 billion in investments. As per the company and the government of the state of Nuevo Leon, the LGMG project aims to create three industrial clusters for processing and manufacturing, warehousing and logistics, and business support services.

According to Nuevo Leon Governor Samuel Garcia in a post on X, formerly known as Twitter, approximately 120 businesses are expected to participate in the project, which is expected to generate an estimated 7,000 local jobs. The Mexican government is working hard to attract companies that want to relocate their offshore operations closer to their North American customers. It announced investment deductions of 89%-56% for these companies last week.

The project's first phase, land acquisition, will begin this month. Construction will begin in December.

The Chinese firm is the latest to announce investment plans in Nuevo Leon, which borders the United States state of Texas, joining Japanese motorcycle manufacturer Kawasaki, which announced last week that it will invest $200 million in the state to establish a manufacturing plant.