John Deere has confirmed plans to build a new $55 million manufacturing facility in Nuevo León, Mexico. This strategic investment will focus on producing mini track loaders and mini wheel loaders, with operations set to commence in 2026. The move underscores John Deere’s commitment to expanding its footprint in Mexico and strengthening its presence in the growing construction equipment market.

A Growing Market for Compact Equipment

The new facility in Nuevo León reflects the company’s focus on addressing the increasing demand for compact construction equipment in Mexico. According to Gecimar Morini, divisional sales manager for Mexico, Central America, and the Caribbean, the Mexican construction equipment market has grown by an impressive 76% since 2022. This surge in demand makes the region a critical area for growth and development.

“The company seeks to continue to invest in the country and is committed to sustainability, urban development despite political changes. Our position is to aim for development as a company,” said Morini.
“We see Mexico as an attractive market, which is why we are investing in the expansion of our dealers and growth in new territories.”

Expansion and Strategic Realignment

The Nuevo León plant is not the only major project on John Deere’s horizon in Mexico. Earlier this year, the company announced plans to relocate production of midsize skid steers and compact track loaders from its Dubuque Works plant in Iowa to a facility in Ramos Arizpe, Mexico. This relocation, also set for 2026, aligns with John Deere’s broader strategy to optimize production and better serve regional markets.

Existing Operations in Mexico

John Deere already operates four facilities in Mexico, each specializing in various products and components critical to the company’s global supply chain. These facilities include:

• Monterrey: Produces components, planters, small skid-steer loaders; houses an engineering technology center, credit operations, and a regional parts distribution hub.
• Ramos Arizpe: Manufactures farm and utility tractor-mounted loaders, operator stations, hydraulic cylinders, and other components.
• Saltillo: Focused on agricultural tractors, transmissions, axles, electronics, and components.
• Torréon: Specializes in engines, electronics, and axles.

Additionally, John Deere has a dedicated export lane at the Laredo-Colombia International Bridge, facilitating efficient international trade and distribution.

Commitment to Sustainability and Growth

The investment in Nuevo León not only supports Mexico’s growing market for construction equipment but also emphasizes John Deere’s focus on sustainability and urban development. By expanding its operations in the region, the company aims to support local economies, create jobs, and drive innovation in the construction and agricultural sectors.

As the global demand for compact and efficient construction equipment continues to rise, John Deere’s strategic investments in Mexico position the company to meet this demand while remaining committed to its core values of quality, sustainability, and innovation.