Ecocable Invests MX$540 Million In Durango Copper Cable Plant

Summary: EcoCable’s MX$540 million investment in a new oxygen-free copper cable manufacturing facility in Gómez Palacio, Durango, strengthens Mexico’s automotive and advanced manufacturing supply chains. The project supports nearshoring-driven supply chain regionalization, vertical integration with the company’s existing wire harness operations, and the creation of specialized industrial employment. It also reinforces Durango’s position as an emerging manufacturing and investment hub, benefiting automotive suppliers, technology manufacturers and regional economic development initiatives. 

EcoCable will invest more than MX$540 million (US$28.7 million) in a new manufacturing facility in Gómez Palacio, Durango, dedicated to producing oxygen-free copper cable, a key component for the automotive and technology industries. The project is expected to create 200 specialized direct jobs and strengthen Mexico’s automotive supply chain through greater local sourcing and vertical integration.

Construction of the new industrial facility is scheduled to begin next month, with completion expected by the end of 2026. EcoCable plans to begin hiring personnel during the first months of 2027 as operations ramp up.

The investment adds to Durango’s growing portfolio of industrial projects, reinforcing the state’s position as a destination for manufacturing investment amid continued nearshoring and regional supply chain expansion. 

Supporting Automotive Supply Chains

As demand grows for advanced electrical and electronic systems in vehicles, manufacturers are seeking greater access to strategic components closer to production hubs.

The new facility will manufacture oxygen-free copper cable, a high-value material known for its conductivity and performance in industrial applications. In the automotive sector, the material is widely used in electrical and electronic systems, areas that have become increasingly important as vehicle electrification and advanced technologies gain traction.

The project is also expected to strengthen local supply chain integration by reducing dependence on imported materials and bringing key inputs closer to domestic manufacturing operations.

One of the primary advantages of the investment will be its connection to EcoCable’s existing operations in Durango, where the company manufactures wire harnesses. The local availability of oxygen-free copper cable will support greater vertical integration between both facilities, improving material supply efficiency and enhancing the competitiveness of the company’s operations within the state. 

Durango’s Industrial Growth Strategy

The announcement comes as Durango continues to attract new industrial projects across multiple sectors.

According to Governor Esteban Villegas Villarreal, the EcoCable expansion forms part of a long-term strategy to strengthen Durango’s position as a destination for industrial investment. He said projects of this nature help stimulate the regional economy through the creation of specialized jobs and the development of new manufacturing capabilities.

Villegas Villarreal also noted that EcoCable is interested in continuing to expand its operations in the state in the coming years. The company’s growth vision through 2030 includes the possibility of incorporating more advanced technological processes currently developed in South Korea, potentially increasing the sophistication of Durango’s industrial base.

The project also aligns with broader nearshoring trends as companies seek to increase regional content within their production processes. Local manufacturing of strategic materials could provide a competitive advantage for sectors with strong demand for electrical components, particularly automotive manufacturing.

State officials and business leaders report that Durango currently has 28 investment projects operating, under construction or preparing to begin operations. Together, these projects represent approximately US$4.17 billion in investment and are expected to generate more than 20,000 direct jobs and an estimated 80,000 indirect positions, reported MBN. 

The projects span sectors including automotive manufacturing, logistics, industry and services, with developments distributed across the state capital, the Laguna region and several municipalities. Authorities say the investments are already contributing to job creation, infrastructure development and regional economic growth.

Business representatives attribute the state’s attractiveness to a skilled workforce, improving infrastructure and access to strategic services, as well as collaboration among companies, government authorities and local communities.

Located in northern Mexico, the state connects the Pacific coast with the US border through the Mazatlán-Matamoros highway corridor. It maintains a road network of 12,447km and seven major highway access points linking industrial centers to ports and border crossings, including Ciudad Juárez and Piedras Negras.

Industrial infrastructure includes the Durango Logistics and Industrial Center (CLID) and industrial parks in the Laguna region, offering access to natural gas, fiber-optic telecommunications and electrical substations. The state also benefits from a talent pipeline supported by 161 higher education institutions and research centers offering 477 degree programs.

Durango’s industrial base includes forestry, mining and advanced manufacturing. The state ranks first nationally in timber production and forest reserves, with 2 million hectares under sustainable management. It is also Mexico’s fourth-largest producer of metals and minerals, hosting 23 mines extracting silver, gold, lead and zinc. In manufacturing, global automotive suppliers including Aptiv, Yazaki and Daws operate facilities producing wire harnesses and components.

With the addition of EcoCable’s new facility, Gómez Palacio continues to expand its role as a manufacturing hub focused on strategic industrial inputs, specialized employment and stronger value chains serving high-growth sectors such as automotive manufacturing.