Shen Guorong, the chairman of Hehe large company (1536), announced on the 30th that the location for the U.S. factory has been finalized. They will invest 3 billion yuan over the course of three years to prepare for comprehensive development in New Mexico.
After signing the MOU, Heda expects that the new factory in New Mexico will start construction early next year. ( Provided by Shen Guorong)
During the Dragon Boat Festival, Shen Guorong traveled to the United States in search of suitable land for the factory. The University assessed four U.S.-Mexico border states, revealing that California’s land was expensive, Arizona had a TSMC supply chain with high labor and construction costs, and Texas faced similar challenges. Eventually, New Mexico was chosen, where the iron network across the U.S.-Mexico border aligned with Foxconn and Weichuang.
Shen Guorong signed a memorandum of understanding (MOU) with the developer of the local industrial zone and will acquire 30 acres of land. After completing the necessary preparations, construction of the factory is expected to commence early next year. Simultaneously, equipment will be purchased, and mass production is scheduled to begin in the first quarter of the following year.
In the future, He Jiang will directly supply the relevant parts system to the North American car factory. They will also bring logistics operations in-house, eliminating the need for outsourcing. The initial investment for this endeavor amounts to 3 billion yuan. By establishing a factory in the United States, Heda will not only supply Tesla but also expand its customer base to include more American clients. This expansion holds significant importance for Heda’s future, especially in light of the projected growth in electric pickup trucks, electric intercontinental trucks, and self-driving distribution fleets.
Shen Guorong, the chairman of the university, competes with the economy in the United States to determine the land of new factories in North America. ( Provided by Shen Guorong)
Heda emphasized that as all car factories transition towards electric vehicles, there is still a market for fuel vehicles, but electric vehicles are gradually gaining traction. It is anticipated that electric vehicles will surpass fuel vehicles by 2027, and Heda aims to become the preferred choice for all car factory manufacturers, driving their operations and fostering continued growth.
In 2023, major electric vehicle manufacturers will undoubtedly compete to announce new electric vehicle models and expand their production capacities, leading to intense competition among hundreds of companies. Therefore, Heda has been proactively deploying and constructing new-generation AI factories to facilitate the transition to electric vehicles, in response to the increasing number of European and American car factories. They have also invested in new companies entering the electric vehicle market.
The construction of Hedajiayi Fifth Factory is currently underway and progressing rapidly. They expect to apply for a factory license by the end of June, install the equipment in the third quarter, and commence production in the fourth quarter. This project aims to enhance heat treatment production efficiency and address process bottlenecks. Additionally, the Qianping land in the Dili factory area, located at No. 1088, obtained its construction license in late May. Concurrently, a factory expansion plan has been initiated, with an estimated completion date of September 2024. This expansion will optimize production capacity allocation in the Dari factory area and enhance overall competitiveness.
Update to Article
Auto-parts supplier from Asia will establish a factory in the Borderplex of New Mexico, creating job opportunities for 350 individuals.
Hota Industrial Manufacturing, headquartered in Taiwan and known for producing automotive gears for clients in North America and Europe, including Tesla, has secured an agreement to acquire a 30-acre parcel in the Westpark Industrial Park located in Santa Teresa, New Mexico. Construction of the factory is expected to commence in 2024, with an investment of $72 million in the state. Hota also envisions potential expansions in the coming decade.
While a final agreement with the state of New Mexico to receive assistance from the Economic Development Department is pending, Hota stands to benefit from various incentives. These include the High Wage Jobs Tax Credit, the Manufacturers Investment Tax Credit, job-training assistance through the Job Training Incentive Program (JTIP), and job-creation grants from the Local Economic Development Act (LEDA) for land, buildings, and infrastructure.
Governor Michelle Lujan Grisham has prioritized investing in New Mexico’s international border to enhance infrastructure and stimulate global trade as part of the state’s economic diversification efforts.
Explaining the reasons behind choosing the Santa Teresa Borderplex, Economic Development Cabinet Secretary Alicia J. Keyes stated that Hota was attracted by the availability of desirable land, the skilled workforce, and logistical advantages that facilitate access to both Mexican factories and North American customers. Hota is among several new companies recognizing New Mexico as a solution to strengthen and diversify their global supply chains.
According to the company’s website, Hota has a significant global presence, with facilities in Japan, Taiwan, China, Detroit, Los Angeles, and Monterey, Mexico. It boasts being Taiwan’s largest automotive gear transmission component company, producing nearly 20 million transmission gears annually.
The Santa Teresa Port of Entry serves as a vital crossing point between the United States and Mexico, particularly significant for the El Paso and Ciudad Juarez industrial regions. Unlike other ports, it does not rely on a bridge structure from the East, providing unrestricted access for commercial vehicles and private commuters without limitations on space or weight. The port handles a growing number of regular commercial vehicles and an increasing portion of private commuters.
