The new facility will boost the company’s domestic manufacturing capacity and strengthen its regional capabilities

 May 23, 2022

BOSTON—Schneider Electric announced in February that it will build a new 160,000-square-foot manufacturing plant in El Paso, Texas, to boost its domestic manufacturing capacity for electrical products.

Schneider’s engineer-to-order manufacturing facility, expected to be completed in late 2022, will produce customized low voltage switchboards that distribute electricity to one or more sources in commercial settings, according to a release from Schneider Electric and the city of El Paso.

The construction is part of a $100 million regional investment to increase production and speed delivery of electrical products to customers in Canada, Mexico, and the United States. Schneider said it plans to hire about 400 new employees for the new factory, which will make El Paso the home of Schneider Electric’s largest manufacturing operation in the United States.

The new factory, located in El Paso’s Northwest Corporate Center, will be Schneider’s fourth in the city and its 20th in the United States. It 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 company said in the release.

“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, in the release. “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.”

The El Paso facility is patterned after other plants across Schneider’s global manufacturing network. It will use the company’s EcoStruxure™ open software architecture and 4th Industrial Revolution technologies to drive energy efficiency, sustainability, and overall cost savings, the company said.

“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, in the release. “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.”

Borderplex Alliance CEO Jon Barela said Schneider Electric’s 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,” Barela said in the release. “This manufacturing plant will generate hundreds of great-paying jobs and play a critical role in securing North America’s manufacturing base.”

Schneider Electric’s investment also helps the company expand its North American manufacturing capacity by building a new manufacturing plant on company-owned land in Tlaxcala, Mexico. Schneider is also evaluating existing buildings in Mexico City  renovate into a manufacturing operation, the company said.

The company reported in November 2021 that, in addition to bolstering its manufacturing capacity, Schneider Electric has vetted and approved more than 100 new suppliers. It has also secured strategic purchases of raw materials to support increased demand and improve continuity of supply, the company said.

“Schneider Electric would like to commend the leadership of the Borderplex Alliance in making this new plant a reality,” said Ken Engel, senior vice president, global supply chain, Schneider Electric North America, in the release. “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.”

 

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