The multinational John Deere, recognized as a global leader in agricultural and construction machinery, announced its first plant in Mexico dedicated exclusively to the manufacture of equipment for the construction sector. The plant, located in Nuevo León, will begin operations in 2026, with an initial investment of 55 million dollars.
The decision marks a milestone in the company’s regional expansion strategy, which seeks to diversify its production and take advantage of the nearshoring boom in Mexico. “Regardless of political changes, our focus is directed at the development of the company in the agricultural, construction and, mainly, infrastructure sectors,” said Gecimar Morini, divisional manager for Mexico, Central America and the Caribbean.
The expansion occurs in a context of political tensions with the United States. President-elect Donald Trump warned on September 23 that he could impose a 200% tariff on John Deere if it moved part of its production outside the country, following a series of layoffs at plants such as the one in Iowa. Despite these threats, the company has maintained its investment plan in Mexico.
According to John Deere, Mexico is the second largest consumer of construction equipment in Latin America, a sector that has grown by 76% since 2022. This growth, along with the country’s competitive advantages, has been a key factor in the company’s decision.
“We see Mexico as an attractive market, which is why we are investing in the expansion of our distributors and growth in new territories. In the long term, with nearshoring and everything the country offers, we see a very broad opportunity for the future,” Morini added.
The plant will initially focus on the manufacture of skid steer loaders and skid steer loaders, compact equipment aimed at the local market. Morini stressed that this segment is incipient in Latin America, with an estimated market size of 4,000 units, far from mature markets such as the United States, where the figure reaches 100,000 units.
Long-term perspectives
John Deere’s strategy in Mexico follows the model that the company implemented in Brazil a decade ago. In that country, it began with a single equipment production line and, over time, expanded its production to five lines and built technological training centers.
“Right here where we are (Brazil) until six months ago there was nothing and now we are even going for a technological training center right next door. It is the same (now in Mexico),” said Morini.
The new plant in Nuevo León will join the three existing facilities in Mexico dedicated to the agricultural sector. With this, the company reinforces its commitment to a market that offers opportunities for both local development and export.
Source: expansion
