Phoenix Contact is extending its production network for the North American market

2024-05-13
Group photo with Dirk Görlitzer, Frank Stührenberg, Mauricio Kuri, and Marco del Prete

Phoenix Contact is planning a new building for electronic and electromechanical production in Mexico to meet the growth potential of the North American market. To this end, Phoenix Contact Production S.A. de C.V. was founded back in February.

The production site in the Querétaro region is expected to cover a total area of 20,000 m², with around 700 employees by 2032. In total, the investments will amount to around €50 million by 2032. Production will begin at the end of 2025 following the first construction phase.

“From an international perspective, we will position our production even more broadly in order to shorten delivery routes for our products and solutions and therefore reduce possible disruptions in the supply chains,” says Frank Stührenberg, CEO of Phoenix Contact, putting the plans into an overall context. The proximity to the US market was crucial when choosing the new location. Access to resources and expertise in electronics production was also important. “Mexico borders the USA directly, has the necessary expertise clusters, and at the same time offers labor cost advantages,” says Dirk Görlitzer, COO of Phoenix Contact and Head of Business Area Industrial Components and Electronics, in explaining the decision. Geographically, Mexico offers the advantage that there is a logistical connection to both the Gulf of Mexico and the Pacific. The Querétaro region is located in central Mexico between the central ports of Veracruz and Manzanillo, and is logistically well-connected to the US.

Frank Stührenberg and Dirk Görlitzer met with Mauricio Kuri, Governor of Querétaro, and Marco del Prete, Secretary of the Ministry of Sustainable Development in Querétaro, at the Hannover Messe to discuss the plans and strategic investments in Mexico.

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Eva von der Weppen
Eva von der Weppen | Corporate Communications