Volvo to build US$700mn truck plant in northern Mexico

Volvo Group and the government of Mexico’s Nuevo León state jointly announced that the automaker will invest US$700mn to build a truck manufacturing plant in Ciénega de Flores, just a few kilometers north of Monterrey. 

Alongside representatives of Volvo Sweden and Volvo México, state governor Samuel García confirmed the news in a video posted on social media.  

“Volvo is coming to build its largest production plant in the world in Nuevo León state. We're very happy as this will be one of the largest investments in this presidential term,” he said.

“We're going to let the company provide the details about the location, the size, the thousands of jobs – all of that will be up to Volvo. For now, we just want to welcome them to the best state for investment, which is Nuevo León,” García added.

The plant will be located on a 93ha site acquired from the company GP Desarrollos, which will also be the construction contractor for the facility, according to daily Reforma.

The investment was first announced by the company hours earlier, stating that the plant will produce heavy vehicles under the brands Volvo and Mack.

The Volvo Group said that the proximity of the state to the US border and its developed infrastructure make it an ideal location for the plant, according to Reforma. 

"Monterrey provides significant logistical efficiencies to support sales in the southwestern and western regions of the United States, as well as in Mexico and Latin America," the company said.