German tech company Bosch will open its first North American software development and engineering services center in Guadalajara’s planned Ciudad Creativa Digital.
Bosch is the first international company to commit to the high-tech hub that aims to lure multimedia firms to the city’s historic downtown.
In its first stage, the company plans to invest 5 million dollars in a 1,800-square-meter IT location that will create some 200 engineering jobs.
Bosch’s center is slated to arrive at Ciudad Creativa Digital, or Digital Creative City, near Parque Morelos in 2016.
“Our investment in Guadalajara underscores our confidence in the region and Mexico’s strategic importance as a manufacturing and development location,” said Werner Struth, member of Bosch’s Americas management board, in prepared remarks. “With this step, we want to expand our local software development and engineering services in the Americas, bringing us closer to our customers.”
Bosch’s announcement comes not long after a local firm, Kaxan Media Group, became the first company to move its operations to the Digital Creative City.
The company, which makes mobile video games and animated features, set up shop there in January.
The plan for the digital creative hub charts a 15-year course for Guadalajara to become Mexico’s main cluster for digital audiovisual production in industries that produce movies, videogames, animation and mobile applications.
Guadalajara was selected for the development in a competition among 11 other Mexican cities due to the strength of the existing tech industry already here.
Backers say it’s the largest multimedia project in Latin America. ProMexico, which promotes international trade and investment in Mexico, says on its website the Digital Creative City will create about 25,000 jobs and attract companies from around the world.
Jalisco Governor Aristoteles Sandoval has already announced an innovation center for boosting economic development also has plans for a complex there. With a 455-million peso investment, or about 34 million dollars, the Centro de Innovación para el Aceleramiento y Desarrollo Económico (CIADE) will include a software center to house about 20 small businesses.
While local companies are expected to fill out the majority of the creative hub, Guadalajara city hall trade officials recently made a trip to India and upon their return they said about 30 companies there expressed interest in joining the project.
As for Bosch, the company already employs more than 300 engineers locally who adapt products for North American customers. The new center — which currently sits on rented property and plans to move to the Digital Creative City in two years — will develop and validate hardware and software for electronic control units used in automobiles.
Bosch has already demonstrated a commitment to Mexico, investing 370 million euros in the country over the past 10 years. The company said it’s looking to expand activities here in years to come.