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Balluff facilitates further growth with new production site in Mexico

A new large-scale production site in Aguascalientes, Mexico is set to strengthen the global production network and shorten supply chains in North and Central America.

Balluff facilitates further growth with new production site in Mexico

Balluff's new Smart Factory will create around 700 modern jobs in production, management and administration in Aguascalientes.

Balluff has big plans: Following another record year in 2022 with Group sales of around 560 million euros, Balluff remains on course for growth and is creating the necessary conditions for this by expanding its manufacturing capacities. The existing large-scale production sites in China and Hungary will be expanded. Additionally, the company is investing around 50 million euros in Mexico, strengthening the production network with an additional new site in Aguascalientes, located about 500 km north of Mexico City, which is set to open at the end of this year. Due to the positive business development and the company’s growth strategy, Balluff is also set to build a new distribution center close to the headquarters in Neuhausen a. d. F. by 2026.

Capacity expansion and resilient supply chains

Mexico is no new territory for Balluff: the sales location in Querétaro has existed for 21 years and will remain in operation. The new smart factory in Aguascalientes will not only facilitate the planned growth, but also make global supply chains less prone to disruptions, shorten delivery times for the AMERICAS trading area, and boost sustainability. “As a family business that operates sustainably, we are very pleased that we can improve our carbon footprint this way”, emphasizes Katrin Stegmaier-Hermle, Managing Director at Balluff. With the greenfield plant, Balluff is regionalizing the supply chain and setting a new production focus in North and Central America. “More than half of the sensors, accessories, network systems, and RFID solutions produced at the new 15,000 m² location will directly supply the North and South American market. The remaining part is intended for the international market,” explains Frank Nonnenmann, Managing Director and Head of Supply Chain.

Groundbreaking ceremony on the company premises in Aguascalientes.

From left to right:
Thomas Kreuzer / Vice President Strategy & Transformation Supply Chain, Balluff,
Alma Ilda Medina / President of the Commission for Economic Development, Cooperative Development and Tourism of the State Congress,
Ing. Ramón Horacio Barba Orozco / President of Grupo Constructor Pea-sa S.A. De C.V.,
Manuel Alejandro González Martínez / Secretary of Economic Development, Science and Technology,
Frank Nonnenmann / Managing Director Balluff,
Teresa Jiménez Esquivel / Constitutional Governor of the State of Aguascalientes,
Andreas Schönle / Project Manager Location Development Mexico, Balluff,
José Antonio Arámbula López / Mayor of Jesús María, Aguascalientes,
Andrea Lopez, Foreign Trade Specialist, Balluff,
Pedro Hugo García González / President of the Industrial Cluster.

Strengthening the production network

This year, Balluff is also set to expand the location in Veszprém, Hungary, adding production space and a new development center. Balluff has been in Veszprém since 1989. The site originally started with 13 employees; today, 1,100 people work for Balluff here.

The sensor and automation specialist is also expanding its capacities and building new facilities in Chengdu, China, enabling the multiplication of the previous production level. In the future, around 500 people will work for Balluff here.

 The two expansions and the new site in Aguascalientes will strengthen the production network. Together with the development center in Neuhausen and the numerous sales locations worldwide, they form a balanced production, logistics and development network in which each location has its specific role. "This way, we are in an optimal position to serve our customers," emphasizes Managing Director Florian Hermle.

 About the company Balluff

Founded in 1921 in Neuhausen a. d. F., Balluff stands with its 3,600 employees worldwide for innovative technology, quality and cross-industry experience in industrial automation. As a leading sensor and automation specialist, the fourth-generation family-owned company offers a comprehensive portfolio of high-quality sensor, identification and image processing solutions, including network technology and software. In 2021, the Balluff Group recorded sales of approximately 504 million euros. In addition to its central headquarters in Neuhausen a. d. F., Balluff has sales, production and development sites in 61 countries, represented by 37 subsidiaries and other representatives. This guarantees customers worldwide availability of high-quality products and exceptional advice and service directly on site.