Germany-based technological solutions supplier Siemens inaugurated a new production line at its Balvanera plant, located in the municipality of Corregidora, Queretaro, where the company invested US$ 7.2 million to double production capacity of control panels and switches for low and medium voltage motors.
The executive vice-president of Siemens Mesoamerica, Alejandro Preinfalk, said that the expansion in the production line implies an increase of 100% in its capacity, from 7,000 to 14,000 panels per year.
It also leads to a 43.6% growth in the workforce, adding 240 new positions to the existing 550 for a total 790 employees.
The production will be destined 80% to the foreign market and 20% to the national market. Nearly 70% of the volume goes to North America and 10% to other regions, such as Asia and South America.
With the start-up of the expansion, the German capital company plans to increase its revenue by 30%, announced the CEO of Siemens Mesoamerica, Louise Koopman Goeser.
"It is a very important moment for Siemens, since we are inaugurating the new production line at the Balvanera facilities, this reinforces our commitment to the development of the manufacturing sector in Mexico," she said.
The official explained that the Balvanera plant will increase its production of high-tech equipment, promoting a high-performance engine platform to supply the food, beverages and cement industry.
"This plant specializes in the production of switchboards and electrical infrastructure and is integrated into the distribution and transmission projects in Mexico, as well as the transformers that have been part of this plant that was the first project in Latin America with high efficiency technology," she explained.
This investment, she said, is part of the agreement that Siemens signed with the federal government in February, committing to invest in automation, energy and digitalization.
A bet on local suppliers
The integration of the local supplier to the productive chain is one of the main strategies and bets of Siemens in Mexico. In 2017 alone, the volume of local purchases increased from 30 to 65%. Koopman Goeser said the company has the goal of increasing local supply to 80% of its value chain by 2026.
"It is important to note that local suppliers are a key element for the improvement of the production value chain. Siemens considers this a priority: the strengthening of internal value chains, which include small and medium-sized companies," he said.
Through the nine factories that Siemens has in the country, it has a base of 2,000 Mexican suppliers.
German FDI in Queretaro
Queretaro stands out as one of the favorite destinations of German capital investments, said at the ceremony Marco Del Prete Tercero, secretary of Sustainable Development.
During the January-September period, the country attracted foreign investment from Germany for US$ 1.3 billion, of which 22% went to Querétaro.
Only in the third quarter of 2017, Queretaro was placed as the largest receiver of German Foreign Direct Investment in the country, assured Del Prete.