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Governor Michelle Lujan-Grisham
New Mexico Governor Michelle Lujan Grisham and Hota Industrial Manufacturing Chairman David Shen unveiled plans on Wednesday for a strategic expansion of the major auto parts supplier, Hota Group, into the United States.
Hota Industrial Manufacturing, headquartered in Taiwan and known for its production of automotive gears for prominent North American and European clients, including electric vehicle giant Tesla, has inked a definitive agreement for a 30acre parcel within the Westpark Industrial Park in Santa Teresa, New Mexico. The construction of this state-of-the-art facility is slated to commence in 2024, with expectations of generating approximately 350 new job opportunities and a staggering $99 million investment into the state. Notably, this could potentially set the stage for additional expansions over the next decade.
This development was formally announced during a joint press conference in Taipei City, where Governor Lujan Grisham was a featured speaker at U.S. Business Day, while concurrently spearheading a trade mission aimed at promoting New Mexico as a prime destination for relocating Asian manufacturing operations to the United States.
In her remarks, Governor Lujan Grisham conveyed her enthusiasm for the collaboration, stating, 'Hota shares with me a strong belief in the potential of the great state of New Mexico. This announcement sits at the nexus of so many of this administration’s priorities, including bolstering global trade and securing a cleaner automotive industry. Hota’s investment in the Borderplex reaffirms what we already know: New Mexico is on the move.”
Hota's decision to expand into the United States reflects a growing recognition among manufacturing companies of the need for diversified and resilient supply chains, aimed at preventing production disruptions due to labor or transportation challenges. Presently, approximately 70% of Hota's market is concentrated in the Americas.
Chairman David Shen elucidated on the choice of Santa Teresa, New Mexico, as the location for this significant manufacturing venture, saying, 'Hota has picked Santa Teresa as its next manufacturing site based on various comparison analyses among the states on the US-Mexico border. Its location makes it a one-day trucking distance to many of our main customers. Transportation infrastructure is in place to support the logistics of our goods and services. Utility supply is stable and relatively inexpensive. Labor costs are currently the lowest among its neighboring states. Another important thing is that New Mexico has no major natural disasters. Most importantly, the fast responsiveness and support from the state officials have enhanced our decision and confidence to go to New Mexico. We believe that the state government will offer the assistance and incentives needed for us to run our business there.'
For Governor Lujan Grisham, enhancing international trade and bolstering infrastructure along New Mexico's international border have been focal points in the state's efforts to diversify its economy.
To facilitate this pivotal move, the State of New Mexico has allocated $3 million to Hota from the Local Economic Development Act (LEDA) Job-Creation Fund to assist with land, building, and infrastructure expenses. Additionally, the company is poised to qualify for various other incentives, including the High Wage Jobs Tax Credit, the Manufacturers Investment Tax Credit, and job-training support through the Job Training Incentive Program (JTIP).
The City of Anthony, New Mexico, is also actively supporting this expansion through the issuance of Industrial Revenue Bonds, which will alleviate the property tax burden on Hota Manufacturing.
Mayor Diana Murillo of the City of Anthony voiced her appreciation, 'On behalf of the Board of Trustees, the City of Anthony is grateful to assist the state of New Mexico and Doña Ana County in helping to locate Hota Manufacturing to the Santa Teresa Borderplex. This project will create jobs and economic opportunities for New Mexicans that are much needed.'
With an estimated economic impact forecasted at a staggering $4.3 billion over the next decade, this undertaking is poised to significantly bolster the economic landscape of the region.
Hota Group, a global player with facilities in Japan, Taiwan, Thailand, China, as well as the U.S. in Michigan and California, currently boasts a workforce of over 4,000 employees worldwide, according to the Governor’s Office.
The Santa Teresa Port of Entry, serving as a critical junction between the United States and Mexico, stands out as the first land port without a bridge structure from the East. This strategic positioning has made it indispensable for the El Paso and Ciudad Juárez industrial regions, as it is the sole port exempt from space and weight limitations. Additionally, the port plays a crucial role in clearing a substantial number of commercial vehicles and private commuters When she returned from Taipei, Governor Lujan Grisham tested positive for COVID-19, she is currently recovering, according to a press release.