MISSISSAUGA, Ont.–(COMMERCIAL WIRE)–schneider electricthe leader in the digital transformation of energy management and automation, has announced that it will invest approximately $46 million in its manufacturing plants in Lexington, KY and Lincoln, NE to modernize its operations Y increase production of circuit breakers and related electrical products for its customers in the US and Canada. The new investment increases the more than $100 million the company spent in 2021 to accelerate the relocation of its manufacturing capacity to the North American region, which saw +12.6% organic growth in FY2021.
Modernization efforts at the 65-year-old Lexington plant and the 50-year-old Lincoln plant will include the installation of new equipment and machinery with the most current and connected technology and automation. The newest technology, along with the use of an architecture optimized for digitization, will help increase the quality and capacity of the plants and make their operations more energy efficient.
Furthermore, these improved manufacturing facilities enabled by digitization and connectivity will improve operational efficiency and the mean time between failures, or the mean time between repairable failures of a technology product. Because new, advanced equipment will be connected, employees will be able to monitor and adjust energy use and perform online diagnostics and predictive maintenance tasks remotely.
“To keep pace with short- and long-term demand for our products and plan for the future, we must invest in our supply chain capabilities,” said Ken Engel, senior vice president, Global Supply Chain, North America. “Our duty always, and particularly in the context of the current economic and energy environment, is to meet the needs of our customers and partners throughout our manufacturing and distribution network. These investments are proof of that commitment.”
Additionally, company officials said:
Construction of its manufacturing facility in El Paso, TX is proceeding on schedule. The 160,000-square-foot plant is projected to be operational in late 2022. Hiring for select engineering positions has begun and additional hiring will take place through early 2023. The plant will employ about 400 workers.
The expansion of Schneider’s Tlaxcala, MX operation continues as the company looks to meet demand for circuit breakers and electrical panel boards produced there. The 150,000-square-foot operation will employ about 600 workers and provide the company with the ability to manufacture and ship products in the region should the need arise. The plant is expected to be operational in early 2023.
Schneider will expand its manufacturing operation in Monterrey, MX with a 185,000 square foot manufacturing facility that will build and ship custom switch products used to transmit power more frequently in commercial buildings. The company expects to employ about 325 workers and begin shipping products before the end of 2023.
The Lexington, KY plant is recognized by the World Economic Forum as an Advanced Beacon and a Beacon of Sustainability for its adoption and use of 4IR technologies and for achieving breakthroughs in sustainability and productivity, respectively. Schneider Electric was ranked #2 on Gartner’s Supply Chain Top 25 for 2022. It recently ranked 8th on Fortune magazine’s 2022 Best Workplaces in Manufacturing & Production™ list.
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