Home Depot to invest US $1.3B to expand operations in Mexico

Home Depot, the multinational location betterment retail corporation, announced it volition put US $1.3 cardinal implicit the adjacent 5 years to fortify its beingness successful Mexico, make employment, and summation the percent of locally sourced products.

Home Depot Mexico CEO José Antonio Rodríguez announced the concern program during President Claudia Sheinbaum’s Thursday greeting property conference. Sheinbaum praised Home Depot — the largest location betterment retailer successful the United States — for its committedness to Mexico.

The US $1.3 cardinal of funds volition beryllium invested implicit the people of the adjacent 5 years, the CEO said. (Presidencia)

“By expanding section sourcing and expanding operations, it is not conscionable creating jobs but besides boosting the country’s wide economical development,” Sheinbaum said, adding that the concern dovetails with the administration’s Plan México policy.

Plan México is an concern argumentation that seeks to supply concern incentives and collaboration betwixt the authorities and the backstage sector, some overseas and domestic, with the extremity of making Mexico the 10th-largest planetary economy. It besides aims to fortify home markets and summation the percent of locally produced goods successful cardinal industries.

Ximena Escobedo, caput of the Productive Development Unit astatine Mexico’s Economy Ministry, said Home Depot presently employs implicit 18,000 radical successful Mexico. The enlargement is expected to straight make an further 2,000 jobs and indirectly lend to the instauration of a further 10,000 positions.

Rodríguez, the CEO, said the concern demonstrates the company’s assurance and committedness to Mexico.

Home Depot Mexico plans to unfastened 5 stores a twelvemonth for the adjacent 5 years, CEO José Antonio Rodríguez said. (Presidencia)

“We started with conscionable 4 stores and 500 employees [in 2000],” Rodríguez said. “Today, we run 140 stores successful much than 100 cities with 18,000 associates, and we are acceptable to instrumentality the adjacent step.”

Among the cardinal aspects of the concern plan:

• Opening an mean of 5 caller stores per twelvemonth to scope 165 locations with 20,000 employees by 2030.
• Strengthening e-commerce capabilities.
• Expanding logistical infrastructure by establishing specialized organisation hubs crossed the country.

Although astir 85% of Home Depot’s products travel from Mexican suppliers, Rodríguez said the institution aims to summation this fig to 100%, with plans to export these products to Home Depot stores successful the United States and Canada.

Rodríguez spoke successful favour of tariffs connected Chinese products imported to Mexico and sold straight to consumers, saying the institution supports “fair competition,” portion besides discussing the viability of using railroads for freight transport, some of which are policies being championed by the Sheinbaum administration.

With reports from El Economista, Milenio, Merca2.0 and Infobae