Doosung Tech Invests US$25M to Build First Plant in Coahuila

South Korea-based Doosung Tech has begun construction of its first plant in Mexico, a US$25 million (MX$500 million) investment aimed at producing electric vehicle components for Hyundai and KIA. The facility, located in Monclova, Coahuila is expected to generate 170 direct jobs in its initial phase, with production lines 70% automated.

Governor Manolo Jiménez Salinas, Monclova Mayor Carlos Villarreal Pérez, Minister of Economy Luis Olivares Martínez, and Kichae Jung, Director of Doosung Tech’s Automotive Division took part in the opening ceremony. 

“This investment boosts the industrial competitiveness of the Central Region and generates new jobs. We continue working as a team for the benefit of our people,” said Governor Jiménez Salinas.

Automated Production for Hyundai and KIA

Doosung Tech’s Monclova plant will specialize in producing components for electric vehicles, combining 70% automated and 30% manual processes, according to Kichae Jung.

“Our first plant in Mexico features production lines with 70% automation. We chose Coahuila, and specifically Monclova, due to strong support from state and municipal governments,” Jung said. 

The company plans to start operations in the first half of 2026, training local personnel in automated machinery operation. Expansion of production capacity is possible depending on demand.

Regional Development Focus

Governor Jiménez Salinas highlighted that the project is part of a broader strategy to boost the regional economy, including two additional investments expected soon and a new state economic development plan set to be unveiled in the coming weeks. He also emphasized collaboration with the federal government to revive AHMSA and attract new automotive investments while supporting young university students, including scholarships for learning Korean.

Monclova Mayor Carlos Villarreal Pérez noted the city’s historical metalworking industry is diversifying toward automotive manufacturing. “After a global crisis due to tariffs, projects exceeding $150 million are materializing this year in the Central-Desert region. Doosung Tech is part of this new phase,” Villarreal said on social media.

Coahuila Strengthens Automotive Investment Position

Doosung Tech’s arrival reinforces Coahuila’s standing as a prime location for automotive investment in Mexico, thanks to security, skilled talent, and business-friendly policies. The company joins a growing industrial cluster, positioning Monclova as an emerging hub in northern Mexico’s advanced manufacturing network.

“The arrival of Doosung Tech represents economic growth, industrial strengthening, new employment opportunities, and the consolidation of Monclova as a strategic point in the automotive industry,” said Xavier Jung, a company executive.