Shandong Golden Empire invests US$165 million in San Luis Potosi

SAN LUIS POTOSI - San Luis Potosí has confirmed the arrival of Shandong Golden Empire Precision Machinery Technology Co. (GEB), a Chinese company specializing in high technology, with an investment of US$165 million.

The company will set up in Parque Logistik III, located in the municipality of Villa de Reyes, as part of its expansion strategy in key sectors.

GEB focuses on the production of equipment and accessories for the automotive industry, urban trains, robotics, wind turbines and the aerospace sector, positioning itself as a relevant element for the industrial and technological development of the state.

According to Jesús Salvador González Martínez, head of the Secretariat of Economic Development (SEDECO), GEB's investment is part of a total of ten Chinese capital initiatives that will take place between 2023 and September 2024, totaling US$1.17 billion.

Among the companies that have decided to set up operations in San Luis Potosí are Himile Mechanical Science and Technology Co., Shanghai Unison Aluminum Products (Unisonal), XCC Xinlong Automotive Parts, JINMA Industrial Group, Asiaway Automotive Components Mexico, Fabcast Solutions, CSMET Group, TSP Group China and a confidential company specializing in meters.

The head of SEDECO said that, in addition to these established companies, it is expected to attract another six Chinese companies in the short and medium term, mainly in the automotive and manufacturing industries.

The consolidation of the San Luis Potosi Automotive Cluster, with more than 300 companies, and its strategic location in the center of the country, have been key factors in attracting investment. The region also benefits from the Treaty between the United States, Mexico and Canada (USMCA), facilitating exports to North American markets.

González Martínez said that now it is no longer necessary to donate land to attract large investments, as happened in the past with BMW or General Motors. Tax incentives, a favorable business environment and streamlined administrative processes have been sufficient to consolidate new investments in the state.