Kostal Group to Expand Plant in Queretaro

Kostal Group announced the construction of its fourth manufacturing plant in Mexico thanks to a US$100 million investment, which will generate 750 new jobs. The new 41,000 square-meter plant, which will be located in Queretaro, will be its first “Power Electronics” complex in North America and aims to meet the growing demand of EV components in the region. 

The German company started operations in Queretaro 49 years ago. It now operates four assembly plants in Mexico. With the new manufacturing facility, Kostal Group aims to tackle the demand for electromobility components and become an essential part of industry’s electric transformation. The new plant’s construction is planned in two phases, with the second expansion phase taking place over 215,000 ft2.

This plant will enable the company to fulfill customers’ production needs in North America, said Harry Asher, CEO, Kostal Group North America, according to Mexico Industry. The company aims to be a key player in the future of mobility thanks to its unique approach to sustainability, added Asher. 

"This is a multi-million-dollar investment for Kostal that will allow us to efficiently serve our customers' production operations in North America," said Asher. He also highlighted the company’s adaptability as it seeks to meet the increasing demand for EVs components. "We are responding to the rapidly growing market and will be ready to supply integrated energy solutions to our original equipment manufacturer customers and their consumers," said the company in a press release. 

This year, Queretaro has created over 13,000 new jobs and attracted 47 new investments projects and over US$1.1 billion in investment, said Marco Antonio Del Prete Tercero, Queretaro’s Minister of Sustainable Development, as reported by MBN. The region remains a strategic location for German investors, hosting 192 German companies and 27 new projects in development. 

Queretaro saw a 48.8 percent increase in total projects when compared to the 31 investments deals of 2021, thanks in part to nearshoring, said Del Prete. Nearshoring plays a critical role for companies that wish to have their production plants closer to their customers in North America. “Many countries seek to take advantage of nearshoring, or of having [supply] chains nearby, including companies from the EU because of our proximity to the US,” he added.