Bobcat held a groundbreaking ceremony for a 700,000-square-foot factory to manufacture compact track loaders and skid steers in Mexico.

The $300 million future plant outside Monterrey will increase compact loader capacity by 20%, the company says.

The company added that its compact loader plants in the U.S. and Czech Republican will remain after the new facility opens, which is scheduled for 2026. Bobcat estimates it will create 600 to 800 jobs in the Neuvo Leon region of Mexico.

“We have seen tremendous growth across our business, and this new facility will support our long-range plans for increased production to meet customer demand,” said Scott Park, Doosan Bobcat CEO and vice chairman.

The company said it selected the Monterrey area for its well-established industrial sector, skilled workforce, proximity to the U.S., cost competitiveness, strong business environment, among other factors. 

The company said the new plant would produce M-Series compact loaders for North America, and its Gwinner, North Dakota, plant would focus on R-Series CTL production. Bobcat’s Dobris, Czech Republic, facility will continue to manufacture M-Series loaders for Europe, the Middle East and Africa, the company has said.

The M-Series models are geared toward cost savings, while the R-Series represents Bobcat’s top-of-the-line loaders. Bobcat produces 11 CTLs – five R-Series and six M3-Series models. It also produces 11 skid steers – five each of R- and M3-Series models and one M2-Series loader.

A rendering of the future 700,000-square-foot Bobcat compact loader plant near Monterrey, Mexico.BobcatBobcat officials denied union claims last year that the Mexico plant would result in loss of U.S. jobs.

In response, Bobcat released this statement in September:

Our goal is to meet growing customer demand, and there are no current plans to lower staffing levels at our facilities. In fact, we have grown the number of employees within the majority of our locations and continue to have open positions to fill.

The design team for the Mexico facility includes U.S.-based Shultz + Associates Architects and Mexico-based GP Construcción, a division of Grupo GP, as the construction manager. Bobcat said the team will will seek LEED Silver certification for the plant. It will also “feature state-of-the-art technology with an emphasis on quality, precision and energy efficiency.”