MARKET INSIGHT | LATIN AMERICA Mexico – Industrial construction output by project type (Real, $M), 2020–29
30,000 25,000 20,000 15,000 10,000 5,000 0
2020 2021 2022 2023 2024 2025 2026 2027 2028
Waste processing plants Metal and material production and processing plants Manufacturing plants Chemical and pharmaceutical plants
project involves the urbanization and subdivision of 77.4 hectares of land within Fundo Landa to create a strategic logistics hub, with total investment exceeding CLP110.5bn ($120m). Construction is scheduled to begin in January 2027. In November 2025, the Universidad de Concepción (UdeC), Universidad del Bío-Bío (UBB), and Huachipato announced a partnership to establish the Centro de Manufactura Avanzada e Industria 4.0 in the Biobío Region, supported by Corfo funding. The facility will be located at Huachipato’s Hub de Innovación Industrial in Talcahuano and will span 2,500m2
of workshop space,
alongside 150 hectares dedicated to industrial piloting. The initiative represents a total investment of
approximately CLP13.8trn ($15bn), including CLP7.9trn ($8.6bn) from Corfo and CLP6.0trn ($6.5bn) from project partners. It will focus on five priority areas: advanced manufacturing, industrial robotics, intelligent systems, advanced materials, and digital transformation for SMEs, with the goal of generating 1,360 jobs over a ten-year period. According to GlobalData, Chile’s industrial construction pipeline totals $85.8bn for projects exceeding $25m. The pipeline is highly concentrated in early-stage developments, with 97.1% of total value in pre-planning and planning as of February 2026. The largest project is the $16bn H2 Magallanes
Plant Development, which involves the construction of a hydrogen production facility, an ammonia plant, and associated infrastructure. Another major project is the $8bn Gente Grenade Green Hydrogen Plant, which includes the construction of a green hydrogen facility, an ammonia plant with a capacity of 1.3 million tonnes per annum, a 3000MW wind farm, a desalination plant, and port infrastructure for transportation.
Mexico Mexico’s industrial construction sector is estimated to have grown by 0.7% in real terms in 2025, a significant slowdown from 9.0% growth in 2024. This deceleration is largely attributed to US tariffs impacting the automotive
42 | April 2026 |
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sector, which accounts for 50% of industrial activity and 80% of vehicle exports. According to INEGI, the industrial production volume index declined by 3.3% year on year during the first nine months of 2025, while the mining production index fell by 7.8% over the same period. Foreign direct investment (FDI) in the automotive sector also weakened, totalling MXN155.7bn ($7.8bn) in the first three quarters of 2025—a 20.1% year-on-year decline, according to the Ministry of Economy. Looking ahead, the sector is expected to
recover modestly, with average annual growth of 2.3% between 2026 and 2029. This growth will be supported by investment in manufacturing, as well as in pharmaceutical and steel production facilities. In August 2025, the Mexican government announced MXN12.0bn ($601.1m) in new pharmaceutical investments aimed at expanding clinical research, manufacturing capacity, and technological capabilities. This includes a MXN3.5bn ($175.3m) investment by Boehringer Ingelheim to expand its manufacturing site in Xochimilco; a MXN3.0bn ($150.3m) investment by Bayer through 2030 to upgrade its pharmaceutical operations; and a MXN2.0bn ($100.2m) investment by AstraZeneca to expand clinical research and modernize its production facility in the State of Mexico. GlobalData reports that Mexico’s industrial construction pipeline, covering projects above $25m, stands at $69.4bn. The pipeline is weighted toward early- stage projects, with 61.1% of total value in pre-planning and planning as of December 2025. The largest project is the $10bn Ixtepec Green Hydrogen Plant, currently in the planning stage and involving the construction of a green hydrogen production facility. Another key project is the $6.5bn Pyrolysis Plant Development in Ciudad Victoria, Tamaulipas. Currently in pre-planning, the project involves building a pyrolysis facility and associated infrastructure, including systems to convert plastic waste into fuel, as well as cooling systems, oil storage tanks, gas-solid separators, and gas scrubbing systems.
2029
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