Nearshoring attracts Asian investments to Nuevo León

In recent weeks, Asian companies have announced significant investments in Nuevo León, which will be carried out in the short and medium term. This is to take advantage of the relocation of processes or nearshoring, aiming to be closer to the North American market. 

According to the governor of Nuevo León, Samuel García, the state could add $10 billion in Foreign Direct Investment (FDI), which is approximately $200 billion pesos, solely from the investments made by Asian companies that solidified during his tour in Japan and China. 

From January to June 2023, FDI in Nuevo León reached $2.795 billion, of which only $57.5 million came from Japan and China, representing 2% of the FDI that arrived in the state during the first half of the year. 

Upcoming Asian investments 

1. The Japanese motorcycle company Kawasaki will invest $200 million. 

2. JLMAG, a Chinese high-tech company, will invest $500 million. 

3. One of China’s construction giants, Lingong Machinery Group (LGMG Group), will invest $5 billion.
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4. The Chinese high-tech company, Ningbo Toupu Group, will invest $700 million. 

5. Hesai Technology, a Chinese company specializing in technology for autonomous vehicles, will invest $260 million. 

6. The Chinese automotive technology company, Intretech, will invest $210 million. 

7. The Chinese lighting development company, OPPLE, will invest $140 million. 

Activity in the industrial real estate market in Monterrey 

It’s worth mentioning that in the last three years, the gross absorption of industrial spaces in Monterrey increased significantly, going from an average of 7 million square feet (ft2) to a peak of 15.6 million ft2 in 2022. However, as of 3Q 2023, the accumulated gross absorption is 7.4 million ft2, according to Analytics 2.0 by Datoz. 

Additionally, the absorption of industrial land reached 7.5 million ft2 in 2022, as reported by ILA from Datoz. 

In summary, Asian investments are expected to continue driving the high demand for industrial spaces and land in this market.