According to a joint statement issued on October 16, China's Lingong Machinery Group (LGMG) will establish a $5 billion industrial park in Mexico's northern state of Nuevo Leon. The LGMG project, according to the company and the government of Nuevo Leon, aims to establish three industrial clusters for processing and manufacturing, warehousing and logistics, and business support services.

As per Nuevo Leon Governor Samuel Garcia in a post on X, formerly known as Twitter, 120 businesses are expected to participate in the project, which is expected to generate 7,000 local jobs. The Mexican government is working hard to attract companies that want to relocate their offshore operations closer to their North American customers. It announced investment deductions of 89%-56% for these companies last week.

The project's first phase, land acquisition, will begin this month. Construction will begin in December.

The Chinese firm is the latest to announce investment plans in Nuevo Leon, which borders the United States state of Texas, joining Japanese motorcycle manufacturer Kawasaki, which announced last week that it will invest $200 million in the state to establish a manufacturing plant.