Juarez gets first post-NAFTA investment: $132 million auto assembly plant

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Canadian firm BRP to bring 1,000 jobs to border with new plant, invest in expansion of major highway

One of BRP’s Can-Am brand vehicles. (image courtesy BRP)

JUAREZ, Mexico (Border Report) — A Canadian off-road vehicle manufacturer is investing $132 million in a new assembly plant that’ll bring 1,000 jobs to Juarez.

One of BRP’s Can-Am brand vehicles. (image courtesy BRP)

Quebec-based BRP said sales of its Can-Am brand vehicles have been strong despite the COVID-19 pandemic and is moving ahead with an expansion of operations in the U.S.-Mexico border region.

“Demand for our products has remained strong, and even surpassed last year’s figures for the same period,” José Boisjoli, president and CEO of BRP, said in a news release. “Our continued innovation and steady growth make this additional capacity necessary to meet our goal of achieving 30% market share”.

Site planning and construction begin in the next few months and the company expects the plant to be operational by fall 2021. BRP already runs two manufacturing plants in Juarez for all-terrain Can-Am brand and another in Queretaro for the Sea-Doo watercraft.

One of BRP’s current facilities in Juarez, Mexico. (photo courtesy BRP)

The new plant will cost 185 million Canadian dollars, or US$132.12 million, the company said.

Juarez Mayor Armando Cabada announces BRP’s multi-million investment in a new assembly plant in his city. (photo courtesy City of Juarez)

Juarez Mayor Armando Cabada said BRP’s expansion will have an immediate impact on construction-related services and a long-term positive effect on the city’s economy.

Cabada said BRP received licensing-fee and land-transfer discounts of about $1.5 million in exchange for investing on the construction of a road linking the plant to Tomas Fernandez Boulevard.

The mayor characterized this as the first investment of the new U.S.-Mexico-Canada Agreement era. He said the expansion shows that multinational companies see Juarez as a safe place to do business. The USMCA went into effect on July 1, facilitating commerce between the three countries. It replaces the North American Free Trade Agreement or NAFTA.

Juarez has 300-plus U.S.-run factories that directly employ more than a quarter of a million people and sustain at least 50,000 jobs in El Paso.

BRP has manufacturing plants in Mexico, Canada, the United States, Austria, Finland and Australia.

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