Mexico. The ZKW Group, a specialist in lighting systems, expands its international presence with investments in its production plant in Silao, Mexico.
The company celebrated the official opening of the third phase of the expansion of the Mexican facility on Nov. 29, adding an additional 15,700 square meters (168,000 square feet).
At the same time, ZKW held a groundbreaking ceremony for a new expansion, which is expected to add approximately 7,000 square meters (75,000 square feet) of production space and create 1,100 new jobs by 2025.
Wilhelm Steger, Managing Director of ZKW Group GmbH, highlighted the importance of this expansion for the NAFTA economic region. "With the expansion, we are increasing production capacities and creating around 2,000 new jobs to manufacture innovative lighting systems for customers in the strategically important NAFTA economic region," he said.
The company is investing more than $100 million (US$108 million) in this third phase of expansion in Silao.
Since 2016, ZKW has been producing headlights for car manufacturers such as BMW, Ford Lincoln, General Motors, Mercedes Benz, Nissan Infiniti, Volkswagen and Volvo in Silao.
With expansions underway and planned until 2025, the company's total investment in the Silao site exceeds €100 million. ZKW currently employs 1,658 people in Mexico and produces lighting systems for the American and Mexican automotive markets.
Starting in 2025, the Silao plant will begin manufacturing headlights and center lights for VW and GM. North America is a key market for ZKW, which is projected to account for around 30% of its sales and potentially become the world's second-largest market by 2028, the company said.
"The long-term goal is to further strengthen ZKW's growth strategy, especially for the USMCA market. By 2026, ZKW Mexico plans to produce around 4.5 million headlamps per year with up to 4,000 employees," said Dominique Boulegue, Plant General Manager at ZKW Mexico.
ZKW Mexico uses advanced technologies and machines, including plastic injection molding systems, paint and hardcoating systems, anti-fog machines, and metal vapor deposition, to produce headlights and complete components. The third expansion will increase the plant's capacity by 1.2 million lighthouses. The company continues to recruit specialists for the new positions created by this expansion.
The inauguration ceremony and laying of the first stone of the new stage were attended by prominent figures in politics and business; among them, Governor Diego Sinhue Rodríguez Vallejo, business consultant Nella Hengstler, business delegate Ramón Alfaro, Silao Mayor Carlos García Villaseñor, Steger, Boulegue and other distinguished guests.