Schneider Electric to modernize North American plants with $46 million USD investment

Schneider Electric is investing around $46 million USD in its Lexington, Ky., and Lincoln, Neb., manufacturing plants. The funds will be used to modernize operations and increase circuit breaker and related electrical product output for its customers in Canada and the U.S.

The new investment augments the more than $100 million the company earmarked in 2021 to expedite reshoring its manufacturing capability in the North American region.

The modernization efforts at the two facilities will include new equipment and machinery installation with the most current and connected technology and automation. The company also plans to optimize the architecture of these facilities for digitization. This, combined with the newer technology, will help increase the plants’ quality and capacity and make their operations more energy efficient, states Schneider Electric.

“To keep pace with the near and long-term demand for our products and to plan for the future, we must invest in our supply chain capabilities,” said Ken Engel, senior vice-president of global supply chain, North America. “Our duty always, and particularly in the context of the current economic and energy environment, is to serve the needs of our customers and partners across our manufacturing and distribution network. These investments are proof of that commitment.”

The company explains that the upgraded manufacturing facilities enabled by digitization and connectivity will improve operational efficiency and mean time between failures, or the average time between repairable failures of a technology product. Since the new, advanced equipment will be connected, employees will be able to monitor and adjust energy usage and perform online diagnostics and predictive maintenance tasks remotely.

Company officials also shared updates on Schneider Electric’s ongoing expansion projects. They said:

• Construction of Schneider Electric’s El Paso, TX manufacturing plant is progressing on schedule. The 160,000-square-foot plant is projected to be operational by the end of 2022. Hiring for select engineering positions has started, and additional hires will be made through early 2023. The plant will employ about 400 workers.
• Expansion of Schneider Electric’s Tlaxcala, MX operation continues as the company seeks to meet demand for the circuit breakers and electrical panel boards produced there. The 150,000-square-foot operation will employ about 600 workers and will provide the company with the capability to manufacture and ship products in-region should the need arise. The plant is expected to be operational in early 2023.
• Schneider Electric will expand its manufacturing operation in Monterrey, MX with a 185,000-square-foot manufacturing plant that will build and ship customized switchgear products used to transmit power most often in commercial buildings. The company expects to employ about 325 workers and begin shipping products before the end of 2023.