QUERETARO, Mexico—Bosch Rexroth, a supplier of drive and control technologies, is building a new $155 million assembly plant here.

Bosch Rexroth has been operating in Mexico for 40 years. The new Queretaro factory will make products and components for mobile machinery and factory automation. The new 452,084-square-foot factory is scheduled to open in mid-2023 and will employ more than 900 associates at full capacity in 2027.

Bosch Rexroth has been present in North America since 1967. The company employs some 2,200 people at locations in the United States and Canada. Around 170 people work for Bosch Rexroth in Mexico.

“We see great potential in the North American market for mobile applications, such as agricultural or construction machinery,” says Greg Gumbs, CEO of Bosch Rexroth North America. “As part of our ‘local for local’ approach, we will enhance our existing mobile hydraulics [production] site in Fountain Inn, SC, and we will intensify the development work for the electrification of mobile machinery. Fountain Inn will become an even stronger and more customer-centric hub for our mobile hydraulics business in North America. The new plant in Queretaro will create additional production capacities.”

Gumbs says the Queretaro factory will also produce factory automation components.

“With this setup, we will [reduce] the need for transatlantic transports. We are becoming more flexible in handling customer inquiries; expanding our portfolio in the areas of prototype construction, customizing and service; and building a more robust regional supply chain,” he says.