Balluff Facilitates Further Growth With New Production Site in Mexico
A new large-scale production site in Aguascalientes, Mexico is set to strengthen the global production network and shorten supply chains in North and Central America.
Balluff's new Smart Factory will create around 700 modern jobs in production, management and administration in Aguascalientes.
Balluff has big plans: Following another record year in 2022 with Group sales of around 560 million euros, Balluff remains on course for growth and is creating the necessary conditions for this by expanding its manufacturing capacities. The existing large-scale production sites in China and Hungary will be expanded.
Additionally, the company is investing around 50 million euros in Mexico, strengthening the production network with an additional new site in Aguascalientes, located about 500 km north of Mexico City, which is set to open at the end of this year. Due to the positive business development and the company’s growth strategy, Balluff is also set to build a new distribution center close to the headquarters in Neuhausen a. d. F. by 2026.
Capacity Expansion and Resilient Supply Chains
Mexico is no new territory for Balluff: the sales location in Querétaro has existed for 21 years and will remain in operation. The new smart factory in Aguascalientes will not only facilitate the planned growth, but also make global supply chains less prone to disruptions, shorten delivery times for the AMERICAS trading area, and boost sustainability.
“As a family business that operates sustainably, we are very pleased that we can improve our carbon footprint this way”, emphasizes Katrin Stegmaier-Hermle, Managing Director at Balluff. With the greenfield plant, Balluff is regionalizing the supply chain and setting a new production focus in North and Central America.
“More than half of the sensors, accessories, network systems, and RFID solutions produced at the new 15,000 m² location will directly supply the North and South American market. The remaining part is intended for the international market,” explains Frank Nonnenmann, Managing Director and Head of Supply Chain.
Strengthening the Production Network
This year, Balluff is also set to expand the location in Veszprém, Hungary, adding production space and a new development center. Balluff has been in Veszprém since 1989. The site originally started with 13 employees; today, 1,100 people work for Balluff here.
The sensor and automation specialist is also expanding its capacities and building new facilities in Chengdu, China, enabling the multiplication of the previous production level. In the future, around 500 people will work for Balluff here.
The two expansions and the new site in Aguascalientes will strengthen the production network. Together with the development center in Neuhausen and the numerous sales locations worldwide, they form a balanced production, logistics and development network in which each location has its specific role. "This way, we are in an optimal position to serve our customers," emphasizes Managing Director Florian Hermle.