Schneider Electric to Invest and Build Three New Manufacturing Plants in North America
Novrmber 12, 2021
Schneider Electric recently announced it will build and equip three new manufacturing plants in North America and hire more than 1,000 new employees to increase production and speed the delivery of electrical products to customers in Canada, Mexico, and the U.S.
Company officials are currently evaluating locations in Santa Teresa, New Mexico and El Paso, Texas for the U.S. manufacturing site. Land owned by Schneider Electric in Tlaxcala, Mexico will be used 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. The company plans to start construction and renovation before the end of 2021 with an ambition to increase its workforce to manufacture circuit breakers, switchboards, panelboards, and medium voltage switchgear for use in data centers, infrastructure, and homes by late 2022.
“Our future is calling for a more resilient and sustainable supply chain and that’s exactly what we’re seeking to deliver with this latest investment,” said Annette Clayton, CEO and President, Schneider Electric North America. “By continuing to invest in modern, digitally enabled manufacturing, we’re increasing capacity to minimize interruption risk when unforeseen challenges occur and reduce wait time for customers.”
Schneider Electric is also focused on shortening its regional supply chain. Beyond bolstering its manufacturing capacity, Schneider Electric has vetted and approved more than one hundred alternate suppliers and secured strategic buys of industry-constrained raw materials to support increased demand and improve continuity of supply, respectively.
Schneider Electric’s supply chain investments of more than $100 million in 2021 and 2020 will enable the company to build and equip the new plants to increase manufacturing capacity. The monies have also been used to purchase new equipment and tooling to build components used for production, and to hire, train, and upskill its workforce within its regional manufacturing network.
Earlier this year, Schneider Electric was ranked fourth in Gartner’s closely watched annual ranking of corporate supply chains, 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 for incorporating 4IR technologies such as artificial intelligence and the Internet of Things into its manufacturing and supply chain operations. The Kentucky plant was also recognized recently by the World Economic Forum as a Sustainability Lighthouse—one of only three worldwide for achieving sustainability and productivity breakthroughs.