Forvia Hella Begins $18 Million Expansion of Electronics Plant in Guanajuato

On April 10, 2024, Forvia Hella laid the foundation stone for the expansion of its electronics plant at the Amexhe Industrial Park in Apaseo el Grande, Guanajuato.

With an investment of $18 million, the expansion plan is divided into three phases aimed at developing more space, innovation, and job opportunities. Currently, Hella Amexhe employs 314 people, with a potential growth of 300% in the coming years.

The first phase of the expansion, expected to be completed by the end of 2024, includes a total construction of 6,600 m². This phase will feature 1,650 m² of office space, 3,800 m² of additional production area, and 1,150 m² for utilities.

In 2025, the second phase will focus on constructing a 3,625 m² warehouse and 3,000 m² of services. The final phase, set for 2026, will add 4,121 m² dedicated to the production plant, thus completing the expansion.

Jorge García, Vice President of Operations for North and South America (NSA), remarked, “This significant investment in our infrastructure underscores our commitment to innovation, sustainability, and our unwavering belief in the potential of our team. The expanded facilities will allow us to increase our production capacities and introduce new product lines related to autonomous driving, lighting electronics, and electrification technologies for battery management systems.”

The expansion is also expected to create more professional growth opportunities in engineering positions such as technical service and manufacturing engineering.

Advantages in the Bajío Region

According to the company, some competitive advantages found in Guanajuato include proximity to other cities with adequate levels of engineering in universities and related companies, facilitating talent attraction. Another advantage is the logistical connectivity by road, closeness to other plants and clients, and a competitive land cost.

García shared that currently, 25% of the steering assistance systems and electronic door activation modules are exported to the United States, while 75% remain in Mexico.

The plant is equipped with the most advanced technology for manufacturing electronic boards and assembling final products. To streamline production and increase productivity, the company focuses on developing highly skilled direct and indirect personnel for operating and executing high technologies, aiming to maintain a culture of safety, quality, and high operational efficiency.

“We will be developing our talent and accelerating all training and overall development, both for local talents and experienced personnel. We require highly skilled staff for the new production focus,” García stated.

Throughout 2024, the complex plans to expand its production areas, necessitating new projects such as lighting control modules, radar sensors, and battery management modules for electric vehicles. “The expanded facilities will allow us to increase our production capacities and introduce new product lines related to autonomous driving, lighting electronics, and electrification technologies for battery management systems.”

Supplier Development

One of Forvia Hella's significant challenges is to increase its local supplier base for developing electronic components, activate its sourcing efforts, and expand its OEM customer base in North America. “Currently, we have clients like General Motors, and through Nexteer Automotive, we serve Ford and Stellantis,” García explained.

He added, “The expanded facilities will allow us to increase our production capacities and introduce new product lines related to autonomous driving, lighting electronics, and electrification technologies for battery management systems.”

The company is publicly traded and operates internationally under the Forvia group brand, which currently ranks as the 7th largest supplier for the automotive industry. The new plant is part of Hella's growth strategy to become the leading operation within the North and South America (NSA) region, specializing in manufacturing products for autonomous driving, such as radar sensors, lighting modules, and smart access systems for vehicles.