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Schneider Electric, a French company with a mammoth manufacturing complex in far West El Paso, plans to add another factory in El Paso or nearby Santa Teresa, New Mexico, due to increasing sales.

A location decision is expected in 30 to 45 days, Annette Clayton, CEO of Schneider’s North American group, said in a brief interview. The plant will cost around $20 million, she said.

The company, which manufactures electrical products, also plans to add two manufacturing plants in and near Mexico City, company officials announced Wednesday.

The company opened a fourth, 125,000-square-foot factory in its El Paso complex in January.

Shown is a portion of the mammoth Schneider Electric manufacturing complex in the Northwest Corporate Center industrial park in far West El Paso.
Shown is a portion of the mammoth Schneider Electric manufacturing complex in the Northwest Corporate Center industrial park in far West El Paso.

The reason for the $60 million, three-plant expansion is because of growing demand for the company’s electrical products that serve a variety of industries — from residential housing to data centers to power grids, Clayton said.

It also spent $40 million in 2020 to upgrade and train employees in four U.S., plants, including in El Paso.

“We serve critical infrastructure, and so all those things are really growing,” and that’s before the recent passage of the $1.2 trillion federal infrastructure spending bill, which will further increase demand, Clayton said.

Companywide sales increased almost 12% in the third quarter and increased 15.1% for the North American group, Schneider reported. The company had sales of almost $29 billion in 2020, including just over $8 billion in its North American group.

Schneider employs 1,300 in El Paso

The company wants to start construction of the El Paso-area factory by the end of this year and have it in operation in 2022, Clayton said.

Schneider employs about 1,300 workers in four factories inside three buildings with a combined 576,000 square feet in the Northwest Corporate Center industrial park in far West El Paso. It's across the street from the West Towne Marketplace shopping center.

A variety of electrical equipment, including switchboards, panelboards and switchgear, are produced in the complex.

This huge 1601 Northwestern Drive building is part of Schneider Electric's mammoth manufacturing complex in the Northwest Corporate Center industrial park in far West El Paso. It is shown on Thursday.
This huge 1601 Northwestern Drive building is part of Schneider Electric's mammoth manufacturing complex in the Northwest Corporate Center industrial park in far West El Paso. It is shown on Thursday.

Schneider began operating in El Paso in 2001 and expanded in 2014, 2018 and this year, a company spokesman said.

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Company officials won’t say if the new factory would be in Schneider's Northwest Corporate Center complex if El Paso is the chosen site.

Company officials "have to look at can we leverage the scale and size” of the El Paso facilities with another El Paso factory, or go to Santa Teresa, which is "an attractive place for logistics," Clayton said.

Annette Clayton, chief executive officer and president of Schneider Electric's North American group.
Annette Clayton, chief executive officer and president of Schneider Electric's North American group.

Union Pacific Railroad has a huge intermodal freight facility in Santa Teresa, located about 7 miles southwest of Schneider's El Paso complex.

Government incentives will play role in new factory site selection

What tax and other government incentives are offered will be a factor in the site selection, but many other things will be considered, Clayton said.

“We’re looking at things like business resilience, logistics, workforce, workforce development,” Clayton said. “It’s not one (thing), honestly.”

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Schneider officials have talked to officials at the Borderplex Alliance, the El Paso-based regional economic development organization, and other officials in El Paso and in New Mexico about its site search, said Kevin Self, Schneider senior vice president of government relations.

One of the buildings in Schneider Electric's mammoth manufacturing complex in the Northwest Corporate Center industrial park in far West El Paso is shown on Thursday.
One of the buildings in Schneider Electric's mammoth manufacturing complex in the Northwest Corporate Center industrial park in far West El Paso is shown on Thursday.

Clayton said one reason the company is looking to expand further in this area "is because we’ve had great success in not only attracting talent, but retaining it."

“We’ve had great success with the (El Paso) community, with the community leaders, with the workforce,” Clayton said.

This area also provides a good, central location to ship products to any points in the United States, she said.

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Jon Barela, Borderplex Alliance CEO, said in a statement, "We are thrilled to see the continued growth in manufacturing opportunities in our region. We are working closely with Schneider Electric to help them expand in the Borderplex.”

Jerry Pacheco, president of the Border Industrial Association in Santa Teresa, said in a statement, “We are happy to look at any industrial project, and most of which we would do some type of incentives package.”

Confidentiality requirements bar him from divulging if his group or others in New Mexico have talked to Schneider officials about the site search, he said.

“We have four industrial parks in Santa Teresa and all have available land ready for construction,” Pacheco said.

Vic Kolenc may be reached at 546-6421; [email protected]; @vickolenc on Twitter.

A portion of Schneider Electric's mammoth manufacturing complex in the Northwest Corporate Center industrial park in far West El Paso is shown on Thursday.
A portion of Schneider Electric's mammoth manufacturing complex in the Northwest Corporate Center industrial park in far West El Paso is shown on Thursday.

This article originally appeared on El Paso Times: French firm to add electrical products factory in El Paso or NM

Source : https://news.yahoo.com/french-company-plans-add-another-180007295.html

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French company plans to add another electrical products factory in El Paso or Santa Teresa

Source:Yahoo News

French company plans to add another electrical products factory in El Paso or Santa Teresa