Yazaki North America, Inc. (YNA) announced in March the installation of its second production plant in Guatemala, for which it signed an agreement with the Government to advance construction, which, it indicated, will strengthen its presence in Central America.
This will be located in Pajapita, San Marcos, approximately seven kilometers from the one that already operates in Ayutla.
Asked about the factors that motivated the company to decide to install its second plant in the country, company executives indicated that Guatemala has proven to be a solid and reliable location for Yazaki.
Among other factors, they report that the workforce has consistently demonstrated a high level of skills, commitment and focus on quality, in addition to building a collaborative relationship with national and local authorities.
More than three years after having inaugurated the first factory in Ayutla, San Marcos, considered a pilot project, Yazaki Corporate Communications executives, Daniel Curren and Ana Merari Sandoval, indicated that the plant has received recognition within the sector and that this experience has given them the confidence to expand in the San Marcos region, where there are similar strengths in labor and infrastructure.
The executives provided their responses to Prensa Libre in writing.
When referring to the positive aspects that still need to be resolved in the country to continue motivating the attraction of investment, they commented that Guatemala has a committed workforce and a government that has shown openness to working collaboratively with investors.
However, among the challenges they mentioned that continuous improvement in infrastructure, the development of human talent and certainty for long-term investment will further strengthen the country’s ability to attract sustainable manufacturing growth.
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The goal is to generate approximately 3,500 jobs, which corresponds to the operation in the maturity stage of the plant.
To this end, the hiring of personnel will be carried out in phases, aligned with operational needs and customer demand, and it is expected that employment growth will occur progressively.
The priority is to employ and develop talent from the communities near the new plant and complement it with qualified employees from nearby regions as opportunities expand.
Regarding the investment they will make for this new plant, they avoided giving an amount and indicated that capital investment figures may vary over time as operations scale and stated that Yazaki does not regularly disclose specific amounts. The company’s operation includes a focus on constant creation of stable jobs, specialized training and integration with the communities where they operate, becoming “a solid and long-term commitment to Guatemala,” they added.
Regarding the investment and installation phases, they explained that the initial preparation of the site is already underway in the municipality of Pajapita.
The manufacturing plant is expected to have an area of 35 thousand square meters and will begin operations in September 2027.
As they explained, the expansion project in the country will be implemented in phases, aligned with the requirements of its clients and operational preparation.
Regarding the investment, last March, when the installation of the second production plant was announced, the Minister of Economy of Guatemala, Gabriela García, indicated that the amount would be US$250 million, mentioning that these were preliminary unofficial figures and that she did not know if it included the land or what other factors. However, company executives said that Yazaki has not disclosed a specific investment figure for this project and that any amount mentioned publicly does not come from the company.
Among the aspects they consider most relevant, they mention the long-term impact of the investment, which will include the creation of quality jobs, the development of skills and the contribution to the sustained economic growth of the community.
They also stated that the details about production capacity and volumes are confidential information and are directly linked to the requirements of their clients, and that it is planned that the new plant “will grow gradually and sustainably, ensuring consistency in quality, safety and stability of the workforce.”
The company mentioned in March that they will make electrical wiring harnesses for Ford F-150 vehicles.
According to information from the Guatemalan authorities, the company chose to establish the new plant under its own Special Public Economic Development Zones (ZDEEP). In this regard, executives explained that operating within the ZDEEP scheme has been a positive experience for Yazaki in the country, at the Ayutla plant, since these figures offer a structured environment that facilitates the export of manufacturing and allows for close collaboration with developers and authorities to ensure adequate infrastructure, reliable public services and compliance.
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Without providing further details, they described that said plant operates successfully and supplies electrical harnesses for global automotive customers, including programs for Ford, and exports mainly to North America. However, specific production volumes and allocations per customer are not publicly disclosed.
Regarding jobs, the country’s authorities mentioned that it already operates with more than a thousand, and that the capacity of the new plant in Pajapita will triple that figure.
According to information provided in 2022 by the company, an investment of up to US$10 million was estimated for the pilot plan, that is, the first factory in Zdeep Puerta del Istmo. The company’s investment plan mentioned on that occasion was US$160 million over a five-year period to install several factories mainly in Guatemala, but also expand its operations in El Salvador.
