Yongmaotai to Invest US$60 Million in Coahuila Auto Parts Plant

Shanghai Yongmaotai Automotive Technology announced an investment of nearly US$60 million to build an aluminum auto parts manufacturing plant in Ramos Arizpe, Coahuila, a project expected to generate 600 direct jobs and strengthen Mexico’s automotive supply chain. The investment reflects continued foreign interest in northern Mexico as a strategic manufacturing hub, particularly for companies seeking proximity to major automakers and suppliers operating in North America.

The announcement was confirmed by Ramos Arizpe Mayor Tomás Gutiérrez, who said the arrival of the Chinese-capital company aligns with the municipality’s industrial development strategy and efforts to integrate new suppliers into Coahuila’s automotive ecosystem. The facility will focus on producing aluminum alloy components for the automotive industry.

Local and state officials emphasized that the project will reinforce Ramos Arizpe’s position as a key manufacturing center, building on the region’s existing industrial base.

According to Coahuila Minister of Economic Development Jacobo Zertuche Cedillo, Shanghai Yongmaotai Automotive Technology will begin operations in the municipality in the coming months, supplying auto parts to vehicle manufacturers and Tier 1 suppliers already established in Mexico. He said the project will contribute to formal job creation and further consolidate manufacturing activity in the region. The company’s global experience and diversified product portfolio are expected to support its integration into Mexico’s highly competitive automotive market.

Founded in 2002 and headquartered in Shanghai, China, Shanghai Yongmaotai Automotive Technology is a global supplier specializing in the design, casting, and machining of aluminum auto parts. Its product portfolio includes components used in engines, transmissions, braking systems and vehicle structures for both internal combustion vehicles and electric mobility platforms. Beyond traditional manufacturing, the company’s capabilities extend across the aluminum value chain, aligning with international efficiency and sustainability standards.

In addition to auto parts manufacturing, Shanghai Yongmaotai is involved in the supply of aluminum ingots, liquid aluminum and material recycling. These processes enable the company to meet global requirements related to vehicle lightweighting, production efficiency and environmental compliance. The Ramos Arizpe facility will also enhance collaboration with major global automotive players already operating in Mexico.

Gutiérrez said the plant will supply parts to international automakers and suppliers, including General Motors, Volkswagen, Bosch and Continental, further strengthening the regional automotive value chain and integration with other companies. 

State-level support played a decisive role in securing the investment, according to local authorities.Gutiérrez Merino highlighted the backing of Coahuila Governor Manolo Jiménez as a key factor in finalizing the project, citing the state’s economic development policy focused on legal certainty, competitiveness and favorable conditions for industrial growth. He added that coordination with state agencies, including the ministries of economy and labor, was essential to facilitate the company’s arrival and connect local workers with new employment opportunities.

The investment is part of a broader trend shaping Mexico’s role in global manufacturing. Municipal officials said the project is part of Shanghai Yongmaotai Automotive Technology’s international expansion into strategic North American markets, amid a nearshoring environment aimed at bringing production closer to major automotive clusters in the region.

Shanghai Yongmaotai Automotive Technology announced a nearly $60 million investment to establish an aluminum auto parts manufacturing plant in Ramos Arizpe, Coahuila. The project will generate 600 direct jobs and supply components to major global automakers and Tier 1 suppliers operating in Mexico.

The investment highlights Mexico’s growing role in nearshoring strategies and reinforces Coahuila’s position as a key automotive manufacturing hub in North America.

Coahuila Ranks First in Formal Employment 

Not only is Coahuila an automobile manufacturing hub, the state has become a premier state for formal employment growth. MBN reported that Coahuila has consolidated its position as Mexico’s leading state for formal employment, according to the latest results of the National Survey of Occupation and Employment (ENOE). Data from the survey shows that 66.7% of Coahuila’s workforce is employed in the formal economy, the highest rate nationwide and well above the national average of 44.6%. The result places the northern industrial state at the top of the national ranking for labor formalization.

The increase reflects a more stable labor environment, providing workers with access to social security, health services, and employment benefits that strengthen household welfare across the state.

Coahuila Minister of Labor Nazira Zogbi said the state climbed one position compared with the previous quarter, when formal employment stood at 65.8%. “An increase of one percentage point may seem modest, but it means that more than 13,000 workers entered the formal labor market,” Zogbi Castro said.

She attributed the improvement to the state government’s labor policies, which emphasize coordination among labor unions, private companies, academic institutions and civil society organizations.