16 March, 2023 | #DatozByDatoz
Tesla will build the largest automotive assembly plant in Mexico, which will be added to its existing plants in California, Nevada, and Texas in the United States, as well as Shanghai, China, and Berlin, Germany. This gigafactory will have a strategic location, as it will be located in the industrial submarket of Santa Catarina, in the metropolitan area of Monterrey, which is 372 miles or 6 hours away from Austin, Texas, where Tesla is based.
With this gigafactory, Tesla is promoting the area where it could have its entire supply chain, providing both the Austin and Monterrey plants. Currently, at least 20% of the components for one Tesla model are produced in Mexico, and there are more than 100 suppliers for the manufacturer in the country, according to the National Autoparts Industry (INA).
In addition, some Tesla suppliers have started operations in Monterrey recently. Finsa, Roca Desarrollos, Nexxus, Vynmsa and Garza Ponce (GP) are among the industrial developers that host these companies and will further benefit from Tesla’s arrival.
Finsa’s industrial parks such as Finsa Santa Catarina I and II, and Finsa Guadalupe host the most of Tesla suppliers.
AGP Glass invested US$800 million in its operations at Finsa Santa Catarina industrial park, in order to provide high-tech glass for Tesla. This company leased a 1 million ft2 build-to-suit (BTS) property from Finsa, according to Datoz Analytics 2.0 tool.
In 2021, the US company Vertiv installed its fourth production center in Mexico and the first in Monterrey, where it manufactures data warehouse technology. Vertiv occupies 402,718 square feet (ft2) building at Finsa Santa Catarina industrial park.
In 2018, the automotive components and systems company IAC Monterrey rented a 358,335 ft2 build-to-suit building at Finsa Santa Catarina.
The German company ZF Group will start up an electronic technology manufacturing plant at Finsa Guadalupe industrial park in May 2023.
In addition, Sergio Argüelles González, CEO of Finsa, said that there is still interest in developing new areas in Santa Catarina, where they already have a presence.
Quanta Computer, a company that designs and manufactures electronic products, chose Roca Desarollo’s Avante Monterrey industrial park to install its operations center. Data from Analytics 2.0 indicates that Quanta Computer occupies 556,757 ft2 in different buildings leased between 3Q 2021 and 4Q 2022.
Forvia, a subsidiary of the French company Faurecia, invested US$150 million in a plant where it will manufacture interior supplies and seats. For this purpose, Nexxus leased them a 220,000 ft2 BTS in Nexxus Aeropuerto industrial park.
Noah Itech, a provider of automation equipment for Tesla, will invest US$100 million in its plant located in Santa Catarina. The company will occupy a 106,117 sq ft building under construction in Vynmsa’s industrial park, Vymnsa Santa Catarina.
Since 2015 Brembo, a leader in brakes manufacturing for vehicles, operates in Nuevo Leon, where it is a tenant of Garza Ponce (GP), occupying 796,985 ft2 at Garza Ponce Escobedo industrial park. In addition, in 2Q 2022, it signed another contract with Garza Ponce to expand its operations at Escobedo Pocket Park, where it will lease 344,444 ft2 additionally.
To learn more details about inventory, space under construction, availability, absorption, and more, visit Datoz’s industrial real estate market analysis platform, Analytics 2.0.