McAllen News | Economic Development | Manufacturing
Staff Report
McAllen, Texas — Global automotive technology leader Valeo has selected McAllen as the site of a new $225 million manufacturing facility expected to create up to 500 jobs, marking one of the largest advanced manufacturing investments in the Rio Grande Valley in recent years.
The announcement was made by the McAllen Economic Development Corporation (MEDC) in partnership with the City of McAllen and Hidalgo County, highlighting the region’s growing role in the North American automotive supply chain.
Headquartered in Paris, France, Valeo operates in more than 30 countries and develops technologies focused on vehicle safety, electrification, connectivity, and next-generation mobility solutions. The new McAllen facility will produce advanced automotive components designed to support evolving mobility technologies and strengthen domestic manufacturing capacity in the United States.
MEDC President and CEO Elizabeth Suarez said the investment reflects years of preparation and strategic planning aimed at attracting high-value employers to the region.
“This project did not happen overnight,” Suarez said. “It reflects years of work to prepare our community, strengthen our sites, and build relationships that make opportunities like this possible. When this project came down to a final decision, McAllen was ready.”
Mayor Javier Villalobos said the decision underscores McAllen’s competitive advantages, including its international connectivity, workforce, and business climate.
“Valeo’s decision to build in McAllen reflects our city’s business-friendly environment, international connectivity, and talented workforce,” Villalobos said. “This investment not only brings significant capital and job creation to our community but also strengthens our role as a key player in the North American automotive supply chain.”
City Manager Isaac J. Tawil emphasized the importance of infrastructure and regional partnerships in attracting advanced manufacturing projects.
“Companies like this seek out communities with clear competitive advantages, strong logistics connectivity, and a workforce capable of supporting advanced manufacturing,” Tawil said. “Valeo’s investment firmly positions our city within a global innovation network.”
Hidalgo County Judge Richard Cortez said the project represents a major milestone for the Rio Grande Valley’s economic growth.
“Valeo’s investment reinforces our region’s capacity to support advanced manufacturing at a global scale,” Cortez said. “We are proud to partner with the City of McAllen and MEDC to bring high-quality jobs and long-term economic impact to our county.”
Jeffrey Shay, President of Valeo North America, said the company selected McAllen because of its strategic location within the North American automotive corridor and strong collaboration among local partners.
“McAllen offers a highly skilled workforce and strong regional partnerships that support advanced, innovative technologies,” Shay said. “This investment will help us serve customers while contributing to continued growth of the U.S. automotive industry.”
Valeo’s expansion strengthens the Rio Grande Valley’s growing presence in advanced manufacturing and highlights the region’s role as part of a binational logistics hub supporting cross-border trade and production.
Economic development leaders say the project is expected to generate long-term economic benefits, including workforce development opportunities and increased investment in technology-driven industries.