Schneider Electric, the global leader in the digital transformation of energy management and automation, today announced it will construct a new 160,000 square foot manufacturing plant in El Paso, TX as part of a $100 million regional investment to increase production and speed the delivery of electrical products to customers in Canada, Mexico, and the United States.
The 'engineer-to-order' manufacturing facility will produce customized low voltage switchboards that distribute electricity to one or more sources in commercial settings. It is expected to be completed in late 2022 and is expected to employ approximately 400 new employees. Located in the Northwest Corporate Center in El Paso, the new factory will be Schneider's fourth in the city and its 20th in the U.S. The facility will make El Paso home to Schneider Electric's largest manufacturing operation in the U.S. and strengthen the company's regional capabilities for its customers.
"The supply chain challenges of the past year have demonstrated the importance of increasing our domestic manufacturing capacity as quickly as possible," said Annette Clayton, CEO and President, Schneider Electric North America. "Our new, state-of-the-art manufacturing facility in El Paso will allow us to get products into the hands of our distributors and end users more quickly, and it will bring an estimated $138 million in economic value to the local area."
"Schneider Electric would like to commend the leadership of the Borderplex Alliance in making this new plant a reality," said Ken Engel, SVP, Global Supply Chain, Schneider Electric North America. "The support and enthusiasm of the Borderplex Alliance, and the City and County of El Paso has led to our largest manufacturing center in the United States here in El Paso."
"This investment is an incredible opportunity for the El Paso community to not only strengthen our city's industry but also showcase the talent of our skilled workforce," said El Paso Mayor Oscar Leeser. "I am grateful to Schneider Electric for choosing to invest and expand in El Paso and look forward to seeing how this modern facility will develop and strengthen our community's industry, create good-paying jobs, and help alleviate the supply chain issues facing our country."
"We are thrilled to support Schneider Electric's game-changing expansion in El Paso that moves our community forward with good-paying jobs, millions of dollars in private investment and makes us its largest manufacturing hub in the United States," said El Paso County Judge Ricardo Samaniego. "This critical investment proves that El Paso boasts the dynamic talent, impactful regional partnerships and thoughtful approach for business that help a leading global company like Schneider Electric to thrive."
"This exciting announcement reaffirms that the Borderplex region is the solution to the global supply chain crisis. Schneider Electric is a world-class company and global leader in energy management and automation. This manufacturing plant will generate hundreds of great-paying jobs and play a critical role in securing North America's manufacturing base. We are grateful to Schneider Electric and our partners at the city and county for coming together to help move our region forward," said Jon Barela, CEO, Borderplex Alliance.
Patterned after other plants across its global manufacturing network, the El Paso facility will use the company's EcoStruxureTM open software architecture and 4th Industrial Revolution technologies to drive energy efficiency, sustainability, and overall cost savings.
Schneider Electric's investment also expands its North American manufacturing capacity using company-owned land in Tlaxcala, Mexico to build a new manufacturing plant expanding its presence in the city. The company is also evaluating existing buildings in Mexico City, Mexico to renovate into a manufacturing operation. In November 2021, the company announced that beyond bolstering its manufacturing capacity, Schneider Electric has vetted and approved more than 100 new suppliers and secured strategic buys of raw materials to support increased demand and improve continuity of supply.
Schneider Electric was ranked fourth in Gartner's closely watched annual ranking of corporate supply chains in 2021, marking the second consecutive year it was placed in the Top 5. Additionally, three of its factories, including its Lexington, KY operation, have earned the distinction of 4th Industrial Revolution (4IR) Advanced Lighthouse by the World Economic Forum. The Kentucky plant was also recognized recently by the World Economic Forum as a Sustainability Lighthouse—one of only three worldwide.