Borderlands Mexico is a weekly rundown of developments on this planet of United States-Mexico cross-border trucking and commerce. This week in Borderlands Mexico: Tesla plans huge distribution middle close to Austin and Danfoss launches new manufacturing line in Mexico for North American market.
Tesla plans huge Texas distribution middle
Tesla is planning a greater than 538,000-square-foot distribution middle close to Austin, Texas, including one other logistics facility to the electrical car maker’s rising manufacturing and provide chain footprint within the area.
The Austin-based automaker is planning a lease-space build-out on the Mustang Ridge Distribution Middle I, situated at 6925 FM Highway 1327 in Mustang Ridge, in line with a submitting with the Texas Division of Licensing and Regulation.
The venture covers 538,720 sq. ft and carries an estimated development price of $1.44 million. Work is scheduled to start Dec. 7 and be accomplished Dec. 4, 2028, in line with the state submitting.
The submitting describes the venture as a “new lease area build-out for Tesla within the current Workplace/WHSE constructing.” The privately funded venture was registered with the state Sept. 1.
The submitting doesn’t specify what merchandise or supplies Tesla will deal with on the distribution middle or what number of workers will work there.
The venture represents one other growth of Tesla’s operations in Central Texas, the place the corporate has established Austin as its company headquarters and operates its huge Gigafactory Texas manufacturing advanced.
Tesla’s (Nasdaq: TSLA) rising logistics footprint comes as the corporate ramps manufacturing and invests closely in manufacturing capability. Tesla reported second-quarter income of $28.24 billion, a 26% enhance from a yr earlier, whereas delivering a document 480,126 autos worldwide in the course of the quarter.
Tesla mentioned capital expenditures greater than doubled sequentially to $5.8 billion in the course of the quarter, with administration anticipating spending to exceed $25 billion this yr as the corporate expands manufacturing capability.
Executives have additionally mentioned battery availability and digital parts stay constraints on growing car manufacturing.
The corporate can be getting ready to ramp manufacturing of its Class 8 Tesla Semi at its Nevada manufacturing facility. Tesla mentioned in July that the Semi manufacturing facility remained on schedule, with manufacturing anticipated to start later this yr.
The Mustang Ridge distribution venture might additionally strengthen Tesla’s place alongside the Texas-Mexico automotive hall, though the state submitting doesn’t establish the power’s suppliers, prospects or freight lanes.
Tesla already attracts parts from an in depth provider community in Mexico. Tecma has reported that Tesla suppliers function in Nuevo León, Coahuila, Tamaulipas, Chihuahua, the Bajío area and the state of Mexico, transport automotive parts north to Tesla’s Texas manufacturing facility.
That provider community provides the Austin area an essential position not solely in Tesla’s manufacturing operation but in addition within the cross-border motion of automotive elements and parts between Mexico and Texas.
The brand new distribution middle is scheduled for completion in December 2028.
Danfoss launches new manufacturing line in Mexico for North American market
Danfoss Local weather Options has launched a brand new manufacturing line at its manufacturing advanced in Apodaca, Nuevo León.
The Danish firm is increasing manufacturing in Mexico to serve rising demand from North American information facilities, in line with Milenio and Mexico Business.
The brand new line produces oil-free test and block valves used with Danfoss Turbocor centrifugal compressors in chillers and warmth pumps.
Danfoss mentioned the growth is geared toward shortening supply instances and strengthening provide chains for patrons within the U.S. The corporate didn’t disclose the funding related to the brand new manufacturing line.
The Apodaca operation will manufacture 12 valve fashions for North American unique gear producers.
Whereas preliminary manufacturing is delivered to prospects working in Mexico, about 80% of the completed merchandise are finally exported to worldwide markets, primarily the U.S., after being integrated into chillers and industrial air-conditioning methods.
Danfoss has additionally doubled the bodily footprint of its Apodaca advanced over the previous two years, growing it from about 366,000 sq. ft to 721,000 sq. ft, in 2026.
Employment on the facility elevated from 800 to 1,300 employees over the identical interval.
Danfoss mentioned roughly 90% of the merchandise manufactured on the Apodaca plant already adjust to necessities beneath the United States-Mexico-Canada Settlement.
Denmark-based Danfoss has 100 factories worldwide (together with 11 within the U.S. and siz in Mexico). The corporate has a world workforce of round 42,000.
Why it issues: Tesla’s new distribution middle will add important distribution capability close to its Austin manufacturing operations and the cross-border provide chains connecting its Texas manufacturing footprint with automotive suppliers in Mexico.
The submit Borderlands Mexico: Tesla plans huge Texas distribution middle appeared first on BigRig.