SANTA TERESA, N.M. (KRQE) – New Mexico Gov. Michelle Lujan Grisham and Hota Industrial Manufacturing Chairman David Shen announced on Wednesday a final agreement to expand business for the major auto parts supplier into New Mexico.
Taiwan-based Hota Industrial Manufacturing signed an agreement for a 30-acre parcel in the Westpark Industrial Park in Santa Teresa, New Mexico, with construction expected to begin in 2024. The company plans to hire 350 employees and invest $99 million in the state, with future expansions possible over the coming decade.
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Hota Industrial Manufacturing produces automotive gears for multiple North American and European clients including Tesla. About 70% of Hota’s market is in the United States, according to a news release from the governor’s office.
Lujan Grisham and Shen made the announcement while Lujan Grisham was on a business and trade mission in Taiwan.
“Hota has picked Santa Teresa as its next manufacturing site based on various comparison analyses among the states on the US-Mexico border. Its location makes it a one-day trucking distance to many of our main customers. Transportation infrastructure is in place to support the logistics of our goods and services. Utility supply is stable and relatively inexpensive. Labor costs are currently the lowest among its neighboring states. Another important thing is that New Mexico has no major natural disasters,” said Shen. “Most importantly, the fast responsiveness and support from the state officials have enhanced our decision and confidence to go to New Mexico. We believe that the state government will offer the assistance and incentives needed for us to run our business there.”
The State of New Mexico has awarded Hota $3 million to assist with land, building and infrastructure costs from the Local Economic Development Act (LEDA) Job-Creation Fund. The business may qualify for other incentives, including the High Wage Jobs Tax Credit, the Manufacturers Investment Tax Credit, and job-training assistance through the Job Training Incentive Program (JTIP), according to a news release from the governor’s office.
“Hota shares with me a strong belief in the potential of the great state of New Mexico,” said Gov. Lujan Grisham. “This announcement sits at the nexus of so many of this administration’s priorities, including bolstering global trade and securing a cleaner automotive industry. Hota’s investment in the Borderplex reaffirms what we already know: New Mexico is on the move.”
The City of Anthony, New Mexico, is also assisting with the expansion by issuing Industrial Revenue Bonds, which lessen the property tax burden. The project has an estimated economic impact of $4.3 billion over 10 years.