Borderlands is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week: Continental AG announces $90M manufacturing facility in Mexico; 3PL Outerspace opens fulfillment operations in Arizona; South Texas border logistics park announces expansion; and CBP seizes tramadol at Laredo’s World Trade Bridge.

Continental AG announces $90M manufacturing facility in Mexico

German tire and industrial parts manufacturing giant Continental AG announced it is investing $90 million in a hydraulic hose factory in Mexico.

The facility will initially create 200 jobs and be located in the west-central Mexican city of Aguascalientes.

It will be the company’s largest plant in the country once completed, according to a news release. Construction of the 914,932-square-foot factory is scheduled to be finished by the end of 2025.

“Strengthening our industry business in the Americas region is a focus for us,” Philip Nelles, a member of Continental’s board for its ContiTech operating sector, said in a statement. “This investment is our answer to the demand and growth of the hydraulic hose market in the region and underlines our strategic approach to become the innovation leader and full range supplier for hydraulic hoses.”

Continental officials also said the factory will help the company expand its hydraulics business into industries such as agriculture, mining, construction, manufacturing and energy.

“The hydraulic market is the largest hose and fittings market segment in our region,” Andreas Gerstenberger, Continental’s head of industrial solutions Americas, said in a statement. “With our new plant in Mexico, we will double our capacity in this field and address current and new customers in multiple industries.”

The facility will be Continental’s second in Aguascalientes and 22nd plant in Mexico. Continental’s operations in the country employ more than 23,000 people who produce and develop automotive components, rubber products and tires that are exported globally.

In 2022, Continental invested around $200 million in the Mexican state of Guanajuato to open a tire factory and expand capacity at an existing plant, according to Reuters

3PL Outerspace opens fulfillment operations in Arizona

Third-party logistics operator Outerspace announced it has opened a warehouse in Phoenix, the company’s first facility in the southwestern U.S.

The 389,000-square-foot facility helps Outerspace establish bicoastal fulfillment opportunities for the company’s e-commerce clients, according to a news release.

“Over the past year, we’ve been laser-focused on growing our footprint to better serve our clients’ needs,” Ricky Choi, CEO and co-founder, said in a statement. “From starting Outerspace in a 1,500 square foot room, to now offering our clients more than a million square feet of warehouse space, this expansion is a major milestone.”

Carlstadt, New Jersey-based Outerspace was founded in 2019. The company offers fulfillment solutions across the U.S. with four facilities in New Jersey, Pennsylvania and Arizona.

South Texas border logistics park announces expansion

Officials for Capote International Business Park in Pharr, Texas, recently broke ground on a 160,000-square-foot building.

The new facility will be near the Pharr-Reynosa International Bridge and include 36-inch clearance heights for tractor-trailers, as well as dock doors, a truck court for trailer storage and a secured truck parking area. The building is scheduled to be completed in June.

“Warehouse space is sorely needed in the Pharr-McAllen market and we hope to be able to fill some of that need,” Nick Dyer, principal at Ocotillo Capital Partners, the park’s developer, said in a statement. “We recognize that cross-border trade is a major part of the growth story of the Rio Grande Valley and we feel privileged to be able to contribute to that growth.”

CBP seizes tramadol at Laredo’s World Trade Bridge

U.S. Customs and Border Protection (CBP) officers recently found 159 pounds of tramadol in a tractor-trailer arriving from Mexico in Laredo, Texas.

On Jan. 18 at the World Trade Bridge cargo area, CBP officers were searching the trailer, according to a news release, when they found six boxes containing tramadol, an opioid analgesic medication often prescribed for pain relief.

Border agents found tramadol at the World Trade Bridge on Jan. 18. (Photo: CBP)

“This drug bust is a prime example of the efficient targeting strategies utilized in the cargo environment to help disrupt the illicit smuggling of this highly addictive opioid into our communities,” Laredo CBP Port Director Alberto Flores said in a statement.

CBP seized the tramadol and turned the case over to Homeland Security Investigations.

More articles by Noi Mahoney

Nearshoring forecast to boost US-Mexico trade in 2024

Mexico aims to compete with Panama Canal by using cargo trains

Covenant Logistics predicts gradual freight market recovery

The post Borderlands: Continental AG announces $90M manufacturing facility in Mexico appeared first on FreightWaves.

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