Hota Group expanding manufacturing operations to New Mexico

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A driver gets into his car at an electric vehicle charging station outside of a Tesla dealership. Mark Schiefelbein / AP Photo

By Tom Joyce | The Center Square contributor

(The Center Square) – New Mexico Governor Michelle Lujan Grisham and Hota Industrial Manufacturing Chairman David Shen announced this week that the Taiwanese company will expand business operations into New Mexico.

Hota signed an agreement for a 30-acre parcel in the Westpark Industrial Park in Santa Teresa, New Mexico. Construction on its new plant will begin in 2024, according to a press release.

The manufacturer will hire 350 employees and invest $99 million in the state. It may also expand operations in New Mexico later this decade. Hota produces automotive gears for North American and European clients, including Tesla.

The governor and the company announced this news in Taipei City, Taiwan, where Lujan Grisham is leading a trade mission to bring manufacturing jobs to New Mexico.

“Hota shares with me a strong belief in the potential of the great state of New Mexico,” Lujan Grisham said. “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 is expanding into the United States because it understands that about 70% of its market is in the Americas, and it needs a more resilient supply chain to prevent production slowdowns due to labor and transportation interruptions, the release said.

“Hota has picked Santa Teresa as its next manufacturing site based on various comparison analyses among the states on the US-Mexico border,” Hota Chairman David Shen said. “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.”

New Mexico gave Hota $3 million from the Local Economic Development Act Job-Creation Fund to help cover land, business, and infrastructure costs.

Hota will also qualify for benefits from the High Wage Jobs Tax Credit, the Manufacturers Investment Tax Credit, and job-training assistance through the Job Training Incentive Program.

The City of Anthony, New Mexico, will issue Industrial Revenue Bonds to assist with the expansion process.

“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,” Anthony Mayor Diana Murillo said. “This project will create jobs and economic opportunities for New Mexicans that are much needed.”

The project will have an estimated $4.3 billion economic impact over 10 years, the release said.

Hota Group also has facilities in Japan, Taiwan, Thailand, and China, plus Michigan and California. It employs over 4,000 employees globally.

The Santa Teresa Port of Entry is the first land port between the United States and Mexico that lacks a bridge structure from the East.

“Because of this, it serves a critical function for the El Paso and Ciudad Juárez industrial regions as the only port not limited by space or weight,” the release said. “The port also clears many regular commercial vehicles and a larger segment of private commuters.”

STPOE doubled its number of commercial vehicles processed per hour in the last year years. It reached a new record in 2022, processing more than 160,000 trucks.

Republished with the permission of The Center Square.