Kingfa will invest $50M in San Luis Potosí and expects up to 500 jobs

Main image: factory floor with machinery (illustrative image). Photo: MGR P / Unsplash.

November 10, 2026. The Chinese company Kingfa will invest 50 million dollars to expand its operations in San Luis Potosí, the state's Economic Development Secretariat (Sedeco) reported. The project plans to progressively go from five to 30 production lines, create up to 500 direct jobs and open the new phase in February 2027.

The announcement coincides with the notification to the Senate of President Claudia Sheinbaum's trip to China, from November 15 to 20, for the APEC leaders' meeting in Shenzhen.

Kingfa in San Luis Potosí: what the new investment includes

According to Cluster Industrial and Plano Informativo, the head of Sedeco, Mario García Valdez, announced the investment after meeting with Sue Yuan, daughter of the company's founder, and with Jun He, president of Kingfa for North America. An incentives agreement was signed at the meeting. The company also plans to build housing for its workers.

Kingfa, founded in China in 1993, develops and manufactures high-performance plastics and composite materials. According to Cluster Industrial, in San Luis Potosí its main market is the automotive industry, which it supplies with materials and components, and its products are also used in home appliances, aerospace and health.

Cluster Industrial clarifies that the official information does not specify whether the 50 million dollars are added to the investment announced in 2025 or are part of that same program.

From the Villa de Reyes complex to the second stage

In May 2025, Kingfa announced an investment of 84 million dollars for a manufacturing and research complex in the Logistik III industrial park in Villa de Reyes. That plan included 15 million dollars for a 15-hectare plot, where the main building and a warehouse would be built, according to then Economic Development secretary Jesús Salvador González Martínez, quoted by Cluster Industrial. It also covered research, development and production of special plastic parts for the automotive sector, with carbon fiber integrated into its processes.

Plano Informativo describes the announcement made on November 10 as the second stage of expansion. Our reading: the expansion adds to the presence of Chinese material suppliers in the center of the country, near automotive plants.

Mexico-China agenda: the trip to APEC Shenzhen

According to El Informador and La Crónica, the Secretariats of Interior and Foreign Affairs informed the Senate that the president will take part in the APEC leaders' meeting on November 18 and 19 and will hold bilateral meetings, including with President Xi Jinping. The document sent to the Senate describes the trip as "a strategic opportunity to boost Mexico's trade diversification".

According to the same outlets, the government wants to bring Plan México's priorities to the region, such as attracting capital and strengthening supply chains, and to prepare its role as host of APEC in 2028. We had already detailed the dates of the meeting with Xi Jinping and the restrictions on cargo trucks in Shenzhen during the summit.

China-Mexico opportunity for suppliers and buyers

Our reading: when a Chinese materials manufacturer opens or expands a plant in Mexico, nearby companies can buy certain inputs in pesos and with shorter lead times, while other components continue to arrive from China. For an SME in the center of the country, that opens two paths: offering local services to these plants (maintenance, transport, packaging, security) or importing directly from Chinese factories whatever is not yet produced here.

If you are evaluating importing plastic parts, molds or components, it is advisable to verify the factory before paying. Also keep in mind that, according to Mexico News Daily, since January 1, 2026 Mexico applies tariffs of 5 to 50% on 1,463 product categories from countries without a free trade agreement with Mexico, including plastics, so the tariff classification should be checked before closing the price.

• Request samples and material datasheets before the full order.
• Request a factory inspection before shipment.
• Compare a DDP price, which includes the cost up to your destination in Mexico in the quote.

At Ciaespinoza.com we support supplier search and inspection in China. In our China Services you will find the quote and supplier search for 1,737.68 pesos and the 8-hour quality inspection for 6,243.12 pesos, both with VAT included according to the store as of November 10, 2026.

To talk about your project, write to us on WhatsApp at +1 (555) 967-3577 or by email at info@ciaespinoza.com.

Sources: Cluster Industrial (November 10, 2026); Plano Informativo (November 10, 2026); Cluster Industrial (May 13, 2025); El Informador (November 10, 2026); La Crónica de Hoy (November 10, 2026); Mexico News Daily (January 1, 2026).