Balluff Inaugurates Production Facility in Aguascalientes, Mexico

By Mohan Krishna Challaturu  | 31-10-2023

Balluff is solidifying its presence in the Americas with a 7,000 m² greenfield facility in Aguascalientes, backed by a 50 million euro ($53 million) investment, aiming to localize its supply chain. “We are firm believers in the power of local and regional business operations, including manufacturing.

This is precisely why our Aguascalientes location is crucial for providing our Americas region customers with products manufactured locally, ensuring both high availability and swift delivery times,” states Frank Nonnenmann, Balluff’s Managing Director and Head of Supply Chain.

With a 21-year operational history in Querétaro, Mexico, and subsidiaries across the Americas including Canada, the United States, Argentina, and Brazil, Balluff is no stranger to the region.

Fast Implementation:

Balluff efficiently expedited the construction of its Aguascalientes site, adopting a fast-track approach that spanned from developing the business case to selecting the site and constructing the building. This approach enabled the simultaneous progression of various project phases.

“We managed to run the factory’s design phase, initiate the local construction firm, and negotiate contracts all at the same time,” shares Andreas Schönle, Manager of Strategic Projects at Balluff, who played a pivotal role in overseeing the construction and operational ramp-up of the new facility.

Balluff’s successful collaboration with both the contractor and local authorities significantly contributed to the project’s swift execution. Just a year after receiving internal approval and eight months following the groundbreaking ceremony in January, the facility was ready to commence production.

The grand opening event served as a congregation point for customers, partners, and government officials, while a subsequent family day provided a chance for employees and their families to familiarize themselves with the new site and join in the celebration.

Creating Perspectives:

Balluff, a fourth-generation family business, is deeply committed to forward-thinking and sustainable practices. “At Balluff, we operate under the principle of planning for the future today,” shares Nonnenmann.

“Our strategies are meticulously crafted with a future-oriented mindset, focusing on economic viability, environmental responsibility, technological advancement, and product excellence, with a special emphasis on the well-being of our people.

This approach ensures a stable and sustainable future for our employees, business partners, and customers. “Balluff is a place where careers are built, underscored by the local leadership of Edgar Gonzalez, a long-time resident of Aguascalientes, who oversees the new facility.

Presently, Balluff employs 70 individuals in Aguascalientes, a number expected to rise swiftly. The goal is to expand the team to 100 by year’s end, and to 700 by 2027.

The company prides itself on providing contemporary workspaces, cutting-edge production technology, and an energy-efficient infrastructure.

Progress is being made with the installation of a 500 kWp photovoltaic system atop the production and logistics building, anticipated to supply roughly a third of the site’s energy needs independently in the future, while also reducing carbon emissions by approximately 350 tons annually.

Consistent Growth and Collaborative Spirit:

With production successfully underway, Balluff is set to incrementally increase its manufacturing capabilities in Aguascalientes, introducing additional assembly lines dedicated to sensor and network technology tailored for the American market.

Gonzalez, with a positive outlook on the upcoming challenges, is optimistic about a seamless initiation of production, stating, “Over the recent months, we’ve witnessed the strength of international collaboration across Balluff’s global locations, drawing valuable insights from our colleagues’ experiences.”

Prior to production, expert teams from Hungary, China, and Germany were deployed to train the Mexican staff, fostering a sense of unity and dedication. Gonzalez highlights, “Our team has shown incredible dedication. The unique spirit of the Balluff family, characterized by collective effort, was palpable.”

Balluff’s Aguascalientes facility kicks off with a 7,000 m² production area, with provisions for future expansion already in place. This establishment marks a significant milestone for the company, representing one of several major initiatives undertaken this year to enhance its production network.

Alongside the developments in Aguascalientes, Balluff has also substantially enlarged its facilities in Veszprém, Hungary, and Chengdu, China. These strategic expansions across different regions are instrumental in fortifying global supply chains, reducing delivery times, and promoting sustainable practices.