John Deere is set to expand its footprint in Mexico with a $55 million investment in a new facility in Nuevo León. The plant, slated to begin operations in 2026, will focus on manufacturing mini track loaders and mini wheel loaders, primarily targeting the Mexican equipment market.
The news, first reported by Mexico Now on November 28, highlights John Deere’s growing commitment to the region. This move comes as part of a broader strategy to enhance its presence in Mexico and capitalize on the rapidly expanding construction equipment market, which has seen a 76% growth since 2022.
Strategic Investment in Mexico
Gecimar Morini, John Deere’s divisional sales manager for Mexico, Central America, and the Caribbean, confirmed the plans during an interview with Mexico Now. “The company seeks to continue investing in the country and is committed to sustainability and urban development despite political changes,” Morini stated. He emphasized John Deere’s goal of driving regional development and expanding its dealer network in new territories within Mexico.
The facility in Nuevo León will complement John Deere’s existing operations in the country. The company currently operates four plants in Mexico, which focus on diverse operations, including manufacturing components, agricultural machinery, and engineering technology. These facilities are strategically located to support both domestic and international markets, utilizing a dedicated export lane at the Laredo-Colombia International Bridge.
Expanding Production in Mexico
In addition to the Nuevo León plant, John Deere announced earlier this year that it would relocate production of midsize skid steers and compact track loaders from its Dubuque Works plant in Iowa to Ramos Arizpe, Mexico. This transition, also scheduled for 2026, underscores the company’s confidence in Mexico as a key market and manufacturing hub.
The Nuevo León facility represents a significant step forward in John Deere’s expansion strategy. It aims to address increasing demand for compact construction equipment in Mexico and neighboring regions while leveraging the country’s growing industrial infrastructure and workforce.
Existing Operations in Mexico
John Deere’s current operations in Mexico are spread across four facilities, each specializing in unique aspects of manufacturing and logistics:
- Monterrey: Produces components, planters, and small skid-steer loaders; houses an engineering technology center, credit operations, and regional parts distribution.
- Ramos Arizpe: Manufactures farm and utility tractor-mounted loaders, operator stations, components, and hydraulic cylinders.
- Saltillo: Specializes in agricultural tractors, transmissions, axles, electronics, and components.
- Torréon: Focuses on engines, electronics, axles, and related components.
These facilities, coupled with the upcoming Nuevo León plant, position John Deere as a leading player in the Mexican construction and agricultural equipment market.
A Growing Market Opportunity
John Deere’s investments reflect confidence in Mexico’s economic potential and its construction equipment market’s growth trajectory. With a focus on sustainability, innovation, and strategic development, the company is poised to strengthen its regional presence while contributing to urban and industrial progress.
As construction activity in Mexico accelerates, the addition of the Nuevo León plant underscores John Deere’s commitment to meeting local market demands while maintaining its global reputation for excellence.
Fulian Operation Team
2024.12.30
