November 10, 2026. Chinese company Kingfa will invest 50 million dollars to expand its operations in San Luis Potosí, the state's Economic Development Ministry (Sedeco) said. The project will gradually take the plant from five to 30 production lines, create up to 500 direct jobs and open the new phase in February 2027.
The expansion
According to Cluster Industrial and Plano Informativo, Sedeco head Mario García Valdez announced the investment after meeting Sue Yuan, daughter of the company's founder, and Jun He, Kingfa's president for North America, and the parties signed an incentives agreement. The company also plans housing for its workers.
Founded in China in 1993, Kingfa develops and makes high-performance plastics and composites. In San Luis Potosí its main market is the auto industry, and its products are also used in appliances, aerospace and health care. Cluster Industrial notes that official information does not say whether the 50 million dollars is on top of the investment announced in 2025 or part of the same program.
In May 2025, Kingfa announced 84 million dollars for a manufacturing and research complex at the Logistik III industrial park in Villa de Reyes, including 15 million dollars for a 15-hectare site and production of special plastic auto parts with carbon fiber. Plano Informativo calls the new announcement the second expansion phase.
Mexico-China agenda
Mexico's interior and foreign ministries told the Senate that President Claudia Sheinbaum will travel to China from November 15 to 20 for the APEC leaders' meeting in Shenzhen on November 18–19, with bilateral meetings including Xi Jinping. The document describes the trip as "a strategic opportunity to boost Mexico's trade diversification", according to El Informador and La Crónica.
Our take
When a Chinese materials maker expands in Mexico, nearby firms can buy some inputs locally while other components keep coming from China. Since January 1, 2026, Mexico has applied tariffs of 5 % to 50 % on 1,463 product categories from countries without a trade agreement, plastics among them, according to Mexico News Daily, so check the tariff line before fixing a price.
- Confirm the factory is real with supplier verification before paying.
- Ask for samples and material data sheets before the full order.
- Book a factory product inspection before shipment.
