Kromberg & Schubert Expands Guanajuato Operations

Summary: German supplier Kromberg & Schubert is expanding operations in Guanajuato with a US$26 million investment tied to BMW and Mercedes-Benz supply chain projects, reinforcing Mexico’s role as a strategic manufacturing and nearshoring hub for North America. The investment reflects accelerating European participation in Mexico’s automotive and advanced manufacturing sectors under the modernized Mexico-EU trade framework, particularly in electrification, auto parts and export-oriented production. Guanajuato and Aguascalientes continue attracting German industrial investment as companies expand regional capacity, strengthen USMCA-linked supply chains and increase specialized manufacturing operations. 

German automotive supplier Kromberg & Schubert announced a US$26 million investment to expand operations in the municipalities of Irapuato and San Francisco del Rincon, Guanajuato, strengthening Mexico’s automotive supply chain as European manufacturing investment in the country continues to accelerate. The expansion will create more than 1,090 new jobs and increase the company’s production capacity for projects linked to BMW and Mercedes-Benz. The new investment raises Kromberg & Schubert’s cumulative investment in Guanajuato to more than US$156 million.

The announcement comes as Mexico deepens industrial ties with the European Union through the Modernized Global Agreement, expected to expand bilateral trade and industrial cooperation. According to the Mexican Institute for Competitiveness (IMCO), Mexico’s manufacturing sector attracted US$46.9 billion in European investment between 2015 and 2024, representing 53% of all European Union capital received by the country during that period, reported MBN.  

Guanajuato Advances Industrial Investment Goals

The Kromberg & Schubert expansion adds momentum to Guanajuato’s broader strategy to consolidate its position as one of Mexico’s leading automotive manufacturing hubs. During the official announcement, Guanajuato Governor Libia García said the state has already reached 50% of its six-year investment attraction target, securing more than US$4 billion through 56 industrial projects expected to generate over 14,000 jobs.

The governor said the expansion confirms continued international confidence in Guanajuato’s manufacturing capabilities and industrial infrastructure. The investment includes new projects at the company’s Irapuato plant tied to BMW operations in San Luis Potosi, as well as the expansion of its plastics injection facility in San Francisco del Rincon, where the company will nearly double operating capacity. The company also plans to strengthen processes connected to strategic Mercedes-Benz projects.

The announcement also reflects a broader trend of growing European participation in Mexico’s manufacturing sector, particularly in automotive production and advanced industrial operations. IMCO data identified manufacturing as the main sector for European investment due to Mexico’s export infrastructure, integration with US supply chains and established industrial ecosystems in states such as Guanajuato, Nuevo Leon and San Luis Potosi.

In 2024 alone, Mexico’s manufacturing industries captured US$5.8 billion in European investment. Transportation equipment manufacturing represented the largest segment, accumulating US$21.6 billion between 2015 and 2024. Germany played a central role in that growth through investments linked to companies including Volkswagen Group, BMW, Mercedes-Benz, Bosch and Continental AG.

The auto parts segment also expanded significantly as automakers accelerated electric vehicle production and specialized component manufacturing in Mexico. Production of motor vehicle parts accumulated US$9.1 billion in European investment during the period, with Germany contributing 61% of total EU investment in the sub-sector, reported MBN. Companies such as Aptiv and Mergon were identified as part of the industrial network supporting vehicle electrification and advanced manufacturing operations across Mexico. 

Nearshoring Continues Driving Regional Growth

The expansion also highlights the role of nearshoring in reshaping Mexico’s automotive supply chain landscape as manufacturers increase regional production capacity for North America. Kromberg & Schubert has maintained operations in Guanajuato since 2005 and currently operates facilities specialized in the production of electrical harnesses, battery cables and advanced automotive modules. The company supplies components for premium vehicles, including the Mercedes-Benz S-Class.

Governor García emphasized the project’s social impact, noting that 90% of the company’s workforce in Guanajuato comes from the state and that women represent 60% of employees. Meanwhile, Kromberg & Schubert Plant Technical Director Raúl León said the new investment reaffirms the company’s confidence in Mexico and Guanajuato as strategic manufacturing locations.

“The expansion will allow us to increase production capacity and meet new demands from the global automotive industry from Mexico’s Bajío region,” León said.

The project further strengthens Guanajuato’s position as a major industrial and automotive manufacturing center while reinforcing supply chains tied to premium vehicle production, electrification and export-oriented manufacturing.

Aguascalientes Deepens German Industrial Ties 

Another state that has attracted a measurable amount of German investment is Aguascalientes. MBN reported that the state is reinforcing its position as a manufacturing and foreign investment hub, with German companies contributing nearly US$34 million, or 12.8% of the investment announced during the current state administration, according to SEDECYT. The state’s growing appeal is tied to its strong industrial infrastructure, skilled workforce and strategic focus on advanced manufacturing and nearshoring opportunities.

The state is also expanding its international promotion efforts through participation in Hannover Messe 2026 in Germany, one of the world’s leading industrial trade fairs. State officials are showcasing Aguascalientes’ industrial capabilities to more than 200,000 professionals from over 60 countries. Officials reported that the state currently has a pipeline of 30 projects valued at more than US$600 million. In addition, Continental AG recently confirmed a US$90 million manufacturing investment in the state, further strengthening Aguascalientes’ role in advanced manufacturing.

Aguascalientes currently hosts 16 German companies operating in sectors such as industrial automation, advanced manufacturing, industrial components and technology. State authorities view the expanding German presence as evidence of the state’s competitiveness and long-term industrial growth strategy.

Governor Tere Jiménez emphasized that Aguascalientes seeks to attract more high-value investment while creating specialized jobs linked to technology and industrial innovation. She highlighted the state’s willingness to continue collaborating with German companies and investors.