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29 March 2025
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Mar 29, 2025Construction Review
In what is termed as a big step in the energy sector of Uganda, the country’s Ministry of Energy and Mineral Development (MEMD), Uganda National Oil Company (UNOC), and a joint venture partner, Alpha MBM, have just signed an Implementation Agreement for the long anticipated Hoima Oil Refinery Project. This agreement was signed on Saturday in the presence of President Museveni at the country’s state house.
“I want to extend gratitude to His Highness Sheikh Mohammed Bin Maktoum and our allies from the UAE for their commitment to investing in Uganda,” President Museveni mentioned in reference to the Alpha MBM boss.
Also read: East African Crude Oil Pipeline (EACOP) Above Ground Installations Commence
Location: Kabaale, Buseruka Sub-County, Hoima District, Uganda.
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“Today, I witnessed the signing of a historic oil refinery implementation agreement between Uganda and Alpha MBM Investments LLC, a company based in the UAE. This agreement will foresee the establishment of a crude oil refinery in Hoima District. The refinery will have a capacity of 60,000 barrels per day,” he mentioned further.
”We must stop the exportation of raw materials and instead add value to everything we produce as a country.”
The agreement that was signed will foresee the construction and operation of a 60,000 barrels per day refinery. Furthermore, the refinery facility is expected to be a crucial step in the country’s quest of unlocking value from its petroleum resources.
Additionally, the refinery is expected to be constructed within three years. This information was revealed by Uganda National Oil Company. Furthermore, the facility is expected to transform Uganda into a regional hub for both petroleum refining and distribution.
This ambitious project was conceived more than ten years ago but faced delays due to funding hurdles and changing investor interest. The Hoima Oil Refinery Project is part of the country’s broader strategy to maximize benefits from approximately 6.5 billion barrels of crude oil that was discovered in the Albertine Graben.
Additionally, the refinery is being developed by Uganda Refinery Holding Company (URHC). This is a subsidiary of UNOC.
Once it starts operations, the facility will process the country’s crude oil into products such as gasoline, diesel, and jet fuel.
Additionally , it will cut Uganda’s reliance on imported redined fuel. Also, it will stabilize the country’s fuel prices and also boost the general national energy security.
This ambitious facility will contain associated infrastructure that will support its operations. These are product pipeline, storage facilities, and access roads.
Also read: $5 Billion EACOP Funding to be Supported by Standard Bank
Furthermore, Hoima International Airport is currently being built to support its logistics and the country’s future oil industry operations. The facility will also serve neighbouring countries like Kenya, DRC, Rwanda, and South Sudan. Also, these countries have expressed interest in becoming off-takers of refined products that will be produced.
Lastly, the first commercial output from the refinery is expected to be around 2028. This aligns with the commencement of oil production from Tilenga and Kingfisher fields. These fields are run by TotalEnergies and CNOOC respectively.
Furthermore, with the implementation agreement of the project signed, it will be later followed by detailed engineering designs, securing funding, and finalizing the investment framework.
Also read: EACOP Coating Plant Commissioned
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China’S Sunrev Solar To Build 2 Gw Solar Cell, Module Factory In EgyptChinese solar company Sunrev Solar will build an integrated industrial complex for solar components in Egypt’s Ain Sokhna industrial zone, which is part of the Suez Canal Economic Zone in the east of the country.
A signing ceremony took place last week between Sunrev Solar and the Egyptian government, attended by Egypt’s Prime Minister Mostafa Madbouly. The first phase will include two integrated factories producing 2 GW of solar cells and 2 GW of solar modules. The cornerstone was laid last week, with completion expected in the first half of 2026.
The second phase will localize production of raw materials including silicon ingots and silicon wafers. Together, both phases will cover 200,000 square meters.
The total investment value is estimated at $200 million, making it one of the largest industrial renewable energy investments in the Suez Canal Economic Zone. The first phase will cost $90 million and the second $110 million.
The Egypt State Information Service said the project will create more than 1,800 direct jobs across both phases. Exports of products from the complex to regional and international markets are expected to generate $300 million in annual revenues.
He Fei, managing director of Sunrev Solar, said the company will bring its most advanced solar technologies “to combine Chinese speed and Egyptian wisdom to efficiently achieve the project’s objectives.”
Waleid Gamal El-Dien, chairman of the Suez Canal Economic Zone, said the project is not only an industrial development but also a major socio-economic milestone. “The choice of Sokhna reflects its competitive advantages, including its strategic location, modern infrastructure, integration with Sokhna Port, and the incentives [the economic zone] provides,” he added.
In November 2024, Chinese manufacturer JA Solar signed an agreement with the Egyptian government to build two solar manufacturing facilities in Egypt. The company is overseeing the construction of a 2 GW solar cell factory and 2 GW solar module factory, partnering with local companies and Abu Dhabi-based Global South Utilities.
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23 June 20252 min readChina’S Sunrev Solar To Build 2 Gw Solar Cell, Module Factory In Egypt
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Clean Energy Jobs Surge As Us Manufacturing Hits $18 Billion GdpSubscribe to our free newsletter today to keep up to date with the latest manufacturing news.
The clean energy manufacturing industry in the United States is no longer a niche segment. It has become a central pillar of the national economy. As of 2025, the sector supports approximately 122,000 jobs and contributes $18 billion to the US gross domestic product. This momentum has been fueled by federal incentives, state-level clean energy mandates, and a global push for sustainable technologies. Yet, amid this growth, looming policy shifts threaten to slow progress and destabilize a key component of the country’s industrial future.
Clean energy manufacturing has emerged as a significant economic force. According to data from the American Clean Power Association, the sector is projected to reach $86 billion in GDP contribution and support 579,000 jobs by 2030. That represents a fivefold increase in jobs and more than quadruples the current GDP contribution.
Solar manufacturing leads this growth. The segment includes more than 90 facilities and employs over 75,000 workers. It generates $5.9 billion in earnings and contributes $11.5 billion to the economy. The average salary in clean energy manufacturing exceeds the national average by $42,000, offering high-quality jobs that support middle-class households.
Federal legislation has been pivotal to the sector’s expansion. The Inflation Reduction Act, passed in 2022, provided robust incentives for domestic manufacturing, which helped drive capital investment and accelerate project development. Since then, dozens of new manufacturing plants have been announced or have begun operations, particularly in solar panel and battery production.
However, recent regulatory uncertainty has created a chilling effect on further investments. Tariff adjustments, supply chain reviews, and a lack of clarity on long-term policy commitments have led to delays and cancellations of planned facilities. Industry leaders caution that without consistent support, the US risks losing its foothold in clean energy manufacturing to international competitors.
States such as Ohio, Georgia, and Texas have become hubs for clean energy manufacturing due to available workforce, tax incentives, and robust transportation infrastructure. In Dalton, Georgia, the expansion of a major solar panel facility has added over 1,000 jobs and attracted secondary suppliers, giving new life to the local economy.
In Ohio, a battery manufacturing plant has partnered with local colleges to develop training programs that prepare students for high-tech manufacturing roles. These examples show how regional cooperation and investment can drive both economic growth and workforce readiness.
Looking ahead, the clean energy manufacturing sector holds enormous potential. Projections suggest nearly 600,000 jobs and an $86 billion GDP contribution by 2030. With global competition intensifying, the US faces a pivotal moment. Through coordinated action and long-term planning, clean energy manufacturing can anchor the next phase of American industrial leadership.
Sources:
Manufacturing Today
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19 June 20253 min readClean Energy Jobs Surge As Us Manufacturing Hits $18 Billion Gdp
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Siemens To Invest $10 Billion In Us Jobs And Smart FactoriesSubscribe to our free newsletter today to keep up to date with the latest manufacturing news.
Siemens is making a significant play for the future of American industry. With an investment exceeding $10 billion, the company is expanding its presence in the United States while embracing advanced technologies and workforce development. This capital deployment positions Siemens to reshape US manufacturing as a digital, automated, and resilient sector.
At the heart of this strategy is a belief that the US manufacturing landscape is evolving. Growing demands for secure supply chains, domestic production, and technological leadership have prompted Siemens to act. Its approach includes constructing new facilities that anchor this transformation.
The new Fort Worth, Texas, facility represents one of Siemens’ largest US investments. At $190 million, the 500,000-square-foot plant will be carbon neutral and produce electrical equipment for energy systems, transportation, and data centers. Fort Worth’s logistics infrastructure and available talent pool made it a strategic location.
In Pomona, Calif., Siemens is modernizing its circuit breaker and switchgear operations. These components are central to electrification efforts across the West Coast. Together, the two sites are expected to generate more than 900 jobs, spanning assembly, engineering, and logistics.
These efforts are part of Siemens’ broader plan to localize production. By bringing manufacturing closer to end markets, the company aims to reduce exposure to global supply chain volatility and respond faster to customer needs.
Siemens is also investing in technology to optimize its manufacturing operations. The acquisition of Altair Engineering, a Michigan-based software firm, is a cornerstone of this effort. Altair’s AI-driven design and simulation tools will enhance Siemens’ industrial automation platforms.
Digital twin technology, which refers to virtual representations of physical systems, will be central to this integration. These tools support predictive maintenance, rapid prototyping, and higher-quality output. Siemens’ approach centers on building intelligent manufacturing environments that can adapt and improve over time.
The result is a system designed not only to increase production but also to raise standards in precision, adaptability, and efficiency.
People remain essential to Siemens’ strategy. The company is forging partnerships with trade schools, community colleges, and municipal programs to cultivate skilled labor. Programs focus on automation, robotics, and digital manufacturing, helping bridge a persistent talent gap in the industry.
By investing in education and training, Siemens aims to create long-term value for both employees and communities. These initiatives extend beyond recruitment. They are structured to develop lasting regional capabilities that support economic mobility.
Siemens’ US expansion reflects a long-term commitment to industrial transformation. By aligning capital investment with emerging technologies and workforce initiatives, the company is redefining how manufacturing contributes to economic growth.
Sources:
Manufacturing Today
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19 June 20253 min readSiemens To Invest $10 Billion In Us Jobs And Smart Factories
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Startup Jetzero To Build $4.7B Factory In North CarolinaFounded in 2021, JetZero has garnered attention across the airline industry for its promise to build “middle market,” more fuel efficient aircraft.
JetZero is aiming to take on the market by offering a wider design that tackles what the startup says are some of the key pain points with current aircraft. Its signature Z4 plane will feature a wider boarding door and more passenger sections that prioritize personal space and individual overhead bins, according to a release. The startup also claims its planes will feature 50% better fuel efficiency as a result of its all-wing design.
Each plane will seat 250 passengers and be able to fly routes up to 5,000 nautical miles.
Both Alaska Airlines and United Airlines have invested in the company, as well as signed conditional purchase agreements.
JetZero is partnering with Siemens to integrate digitial and industrial artificial intelligence tools across the new factory. The two companies will also work together to build JetZero’s prototype, set to take flight in 2027.
The startup also plans to work with the state's community college system to create a talent pipeline for the thousands of jobs it promises to spur.
"We’ve already discussed the company’s unique workforce needs and outlined a detailed customized training plan which will be developed through our NCEdge program," John Loyack, vice president of economic development for the North Carolina Community College System, said in a statement. "In a joint effort with Guilford Technical Community College and other colleges in the region, we’re excited to move forward into implementing a customized program.”
The project will be aided by a sizable state grant that spans the next 37 years. JetZero, which is calculated to grow the economy by $259.4 billion over that time, could then receive more than $1 billion in state incentives, according to the North Carolina Department of Commerce.
The Southeast is becoming a growing hub for aerospace manufacturing. Boeing, which has produced its Dreamliner planes in South Carolina since 2007, is in the midst of a $1 billion expansion to the campus as it looks to ramp production of the planes.
Boeing supplier Williams International is expanding further south in Florida, where it's building a $1 billion gas-powered turbine engine manufacturing site.
Finally, fellow startup Archer Aviation began production at its Georgia factory in January. The air taxi manufacturer hopes to produce 650 electric takeoff and landing aircraft a year by 2030.
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18 June 20252 min readStartup Jetzero To Build $4.7B Factory In North Carolina
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Jabil Plans Multiyear $500 Million Investment In Us ManufacturingST. PETERSBURG, FL—Electronics manufacturer Jabil Inc. will invest approximately $500 million over the next several years to expand its footprint in the southeast United States to support cloud and AI data center infrastructure customers.
The investment will include a new U.S. assembly plant. Jabil is in the final stages of site selection and expects it to be operational by mid-2026.
“To secure America’s future in artificial intelligence, it’s crucial that we build the hardware that powers AI innovation right here at home. Domestic manufacturing isn’t just an economic priority; it’s a matter of national security. We’re proud to expand Jabil’s U.S. factory network, scaling our capabilities to better support the growing needs of our data center customers,” said Matt Crowley, executive vice president of global business units at Jabil.
The investment builds on Jabil’s recent acquisition of New Hampshire-based Mikros Technologies, a leading provider of liquid cooling and thermal management technology. Mikros serves a wide range of industries, including AI data center infrastructure, energy storage and semiconductor testing.
“This initiative is a key element of our long-term strategy to diversify our commercial portfolio and strengthen Jabil’s presence in the U.S.,” said Jabil CEO Mike Dastoor. “While the geopolitical landscape remains dynamic, our position as a U.S.-based company with a significant domestic footprint enables us to help the world’s leading brands navigate
challenges with agility and resilience.”
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17 June 20252 min readJabil Plans Multiyear $500 Million Investment In Us Manufacturing
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Jabil Plans $500 Million Investment In U.S. Manufacturing For Cloud, Ai InfrastructureJabil, a provider of engineering, supply chain and manufacturing solutions, announced that it would invest $500 million to expand its footprint in the southeastern part of the U.S. to support cloud and AI data center infrastructure customers.
The St. Petersburg, Florida-based company said the funds would enable new large-scale manufacturing capabilities, capital investments and workforce development.
Jabil is in the final stages of site selection and expects it to be operational by mid-calendar year 2026.
"To secure America's future in artificial intelligence, it's crucial that we build the hardware that powers AI innovation right here at home," said Matt Crowley, executive VP of Jabil's global business units. "Domestic manufacturing isn't just an economic priority; it's a matter of national security."
The investment builds upon Jabil's recent acquisition of Mikros Technologies, a New Hampshire-based provider of liquid cooling and thermal management solutions. Mikros serves a range of industries, including AI data center infrastructure, energy storage, and semiconductor testing.
"While the geopolitical landscape remains dynamic, our position as a U.S.-based company with a significant domestic footprint enables us to help the world’s leading brands navigate challenges with agility and resilience," CEO Mike Dastoor said.
Jabil has 30 sites across the U.S. and more than 100 globally.
IEN reached out to Jabil for additional information, but the company did not respond to our request for comment.
Manufacturing Net
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17 June 20252 min readJabil Plans $500 Million Investment In U.S. Manufacturing For Cloud, Ai Infrastructure
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Panattoni Secures €800 Million Loan From Erste GroupPanattoni has obtained a substantial financing package totalling approximately €800 million in investment loans from Erste Group to back its development of industrial and logistics projects across Poland
"The loan obtained from our Austrian banking partner, Erste Group Bank AG, will enable us to complete Panattoni Park Warsaw West – one of the key investments in the capital region. With this project, we are strengthening our presence in the strategic Warsaw market, where we have already delivered over 2.1 million sqm of logistics and industrial space. Another 112,000 sqm is under construction," says Emilia Taczewska-Trojańska, Head of Debt Finance Poland at Panattoni.
The latest hall at Panattoni Park Warsaw West is a 16,460 sqm building being developed for logistics operator XBS Logistics. The entire park will comprise over 90,000 sqm of modern industrial space and is already fully commercialised.
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$30B In New Investments Needed To Meet Canada’S Critical Mineral Demand: ReportA newly released report estimates Canada will need at least $30 billion in new capital investments by 2040 if it wants to meet domestic demand for the critical minerals key to a green economy transition.
But the Canadian Climate Institute’s report says cutting back on environmental safeguards and Indigenous consultation to speed up those projects is likely to backfire.
The report released Thursday says those cutbacks can lead to delays later on, due to community opposition or litigation.
The think tank’s latest report comes as the federal government, along with Ontario and British Columbia, face major pushback from First Nations and environmental groups to legislation intended to speed up mining project approvals.
The report says Canadian governments should support Indigenous participation and reduce environmental risks as part of efforts to reduce regulatory delays.
It says Canada has a big opportunity to capitalize on the surging domestic and global demand for critical minerals to build the batteries, solar panels and electric vehicles required to reduce greenhouse gas emissions.
It estimates domestic demand alone for six key critical minerals, including lithium and copper, will reach $16 billion by 2040 if Canada keep up its climate policies, with almost half of that coming from EV manufacturers.
To meet that demand, the think tank estimates Canadian mining projects will need a total of $30 billion in capital investments, and even more if the industry wants to help satiate international demand too.
The report says that’s also likely a lowball figure since it excludes major cost overruns that often plague mining projects.
The estimated domestic need “vastly exceeds” current investment in the sector, which averaged about $2 billion per year from 2018 to 2023, the report said.
The report suggests there’s a role for governments to step in to support the sector with either equity investments or financial risk-sharing agreements. But it should not come at the expense of Indigenous consultation or environmental oversight, the authors say.
“Successful projects that are being developed fast are the ones that have participation from Indigenous communities, that have adhered to the highest environmental standard,” said co-author Marisa Beck, the think tank’s clean growth research director.
Critics say recently passed Bill 15 in B.C. and Bill 5 in Ontario gives those provinces sweeping powers to exempt mining projects from environmental oversight and undermines constitutional obligations to consult First Nations. The provincial governments disagree and say the legislation will help speed up approvals without sacrificing First Nations rights or environmental protections.
Ottawa has also faced pushback to its legislation intended to speed up infrastructure approvals.
The authors of Thursday’s report declined to comment on the specifics of those legislative efforts, but it did put forward several policy recommendations.
Governments should also support Indigenous communities exercising their right to self-determination and economic participation, such as through funding for Indigenous-led environmental assessments, the report says.
Elsewhere, the report recommends provinces strengthen mining regulations to reduce environmental risks and liabilities, such as requiring producers to make their closure plans publicly available.
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14 June 20253 min read$30B In New Investments Needed To Meet Canada’S Critical Mineral Demand: Report
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Barings Acquires £145.2M Urban Logistics Portfolio From BlackstonePAID CONTENT
Property Week
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12 June 20251 min readBarings Acquires £145.2M Urban Logistics Portfolio From Blackstone
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Orbic Builds $110M Device Factory To Boost Us-Made TechSubscribe to our free newsletter today to keep up to date with the latest manufacturing news.
Orbic Electronics has begun construction on a $110 million manufacturing facility in Hauppauge, New York, signaling a renewed commitment to domestic electronics production. The project, named “Project Patriot,” represents more than a corporate expansion. It aligns with broader economic and political efforts to reestablish the United States as a competitive player in global technology manufacturing.
The new facility, located at 555 Wireless Boulevard in Suffolk County, will serve as a cornerstone in Orbic’s plan to relocate high-tech device manufacturing from overseas locations back to American soil. With this initiative, Orbic is positioning itself as a key contributor to reshaping the US electronics supply chain, which has long been dominated by Asian manufacturers.
The choice of Long Island, specifically the Hauppauge Industrial Park, reflects Orbic’s focus on logistical efficiency, skilled labor availability, and regional infrastructure. With an existing 69,500-square-foot structure and a planned 75,000-square-foot expansion, the completed 144,500-square-foot facility is expected to become one of the largest high-tech manufacturing hubs in the region.
More than 1,000 jobs will be created as a result of this investment, ranging from skilled manufacturing roles to engineering and quality assurance positions. This employment boost is significant for Suffolk County, where job growth has lagged in manufacturing sectors, and for the broader New York economy.
Orbic’s strategy centers on reshoring, or moving production previously based in countries like China and India back to the United States. This approach responds to consumer demand for domestically produced goods and serves as a hedge against future disruptions like those seen during the COVID-19 pandemic.
By manufacturing in the United States, Orbic reduces its reliance on global supply chains that are susceptible to geopolitical tension, regulatory shifts, and shipping delays. The Hauppauge facility represents a move toward greater control over quality and scheduling.
This decision echoes a national trend among US-based technology firms seeking to build resilience into their operations. Orbic’s domestic presence is expected to provide customers with improved product traceability, lower lead times, and stronger after-sale support.
Orbic is also investing in talent development. Through partnerships with Suffolk County Community College and Queensborough Community College, the company is co-developing training programs designed to prepare students for careers in advanced manufacturing and electronics assembly.
These programs will offer both classroom instruction and hands-on experience in areas such as circuit assembly, production automation, and electronics testing. The goal is to create a steady pipeline of local workers who are equipped to meet the demands of modern device production.
Rather than recruiting from outside the region, Orbic is prioritizing community engagement and workforce accessibility. This approach ties job growth directly to local education and aims to sustain long-term employment for residents.
New York State has committed up to $10 million in Excelsior Jobs Tax Credits to support the project. These performance-based incentives are linked to Orbic’s hiring and capital investment targets, ensuring accountability while encouraging growth.
Governor Kathy Hochul has described Project Patriot as a step forward in her administration’s goal to revitalize domestic manufacturing and reduce dependence on foreign production. Regional leaders have echoed this sentiment, calling the project a sign of confidence in Long Island’s industrial future.
Economic development officials view Orbic’s decision as a potential catalyst for further investment in the Hauppauge region, which offers proximity to transportation networks, existing infrastructure, and a population eager for stable employment in technology fields.
When production begins in 2026, the facility is expected to manufacture a wide range of connected devices. These include smartphones, tablets, laptops, smartwatches, wireless hotspots, and accessories, with a projected annual output of up to 5 million units.
This volume positions Orbic as one of the few US-based companies capable of producing consumer-grade electronics at scale. It offers an alternative to offshore providers, especially for government and enterprise clients that prioritize domestic sourcing and supply chain security.
Sources:
Manufacturing Today
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12 June 20254 min readOrbic Builds $110M Device Factory To Boost Us-Made Tech
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Gm Adjusts Course On Evs With Major $4B Investment For Factory UpgradesSubscribe to our free newsletter today to keep up to date with the latest manufacturing news.
General Motors has announced a $4 billion investment to expand its US manufacturing footprint. The move reflects the automaker’s evolving response to current market conditions and trade pressures. As the United States imposes new tariffs on Chinese electric vehicles and domestic consumer preferences shift, GM is adjusting its production strategy to emphasize gas-powered vehicles while maintaining its electric vehicle programs.
The $4 billion investment will be distributed among three manufacturing sites, each serving a defined role in GM’s revised production plan.
Orion Assembly will be retooled to build full-size internal combustion engine SUVs and light-duty pickup trucks beginning in early 2027. With this change, Factory ZERO in Detroit-Hamtramck will serve as the primary location for assembling GM’s electric lineup, including the Chevrolet Silverado EV, GMC Sierra EV, GMC HUMMER EV, and Cadillac ESCALADE IQ.
Fairfax Assembly will begin producing the Chevrolet Equinox (gas-powered) by mid-2027. Additionally, the facility is expected to launch production of the 2027 Chevrolet Bolt EV before the end of 2025, reinforcing GM’s presence in the compact EV segment.
Spring Hill Manufacturing will expand its output to include the gas-powered Chevrolet Blazer. The facility already assembles EV models such as the Cadillac LYRIQ and Cadillac VISTIQ. This integration of both gas and electric vehicle production reflects GM’s balanced approach to meeting evolving demand.
Although GM has consistently promoted its long-term EV ambitions, this realignment reflects current realities. New US tariffs have raised the cost of Chinese electric vehicle imports by 100 percent, encouraging manufacturers to strengthen domestic production capacity. GM, while not directly importing EVs from China, is responding to these changes by broadening its production options within the United States.
EV adoption continues to grow, but challenges remain. Affordability, charging infrastructure, and regional policy differences continue to influence consumer decisions. GM’s strategy aims to preserve flexibility. By advancing both gas and electric vehicle programs, it can adjust production based on actual demand.
This investment enhances GM’s commitment to US production and labor. The company operates 50 plants and parts facilities across 19 states, and the latest initiative will protect or create thousands of jobs in manufacturing, logistics, and engineering.
By expanding production domestically, GM also strengthens its network of suppliers, many of whom rely on sustained production contracts. These developments support regional economies while reinforcing national manufacturing goals outlined by policymakers.
From a business perspective, GM’s ability to scale efficiently across vehicle types provides a competitive advantage. The company is investing in a manufacturing framework that supports long-term profitability and responsiveness to demand fluctuations.
Sources:
Manufacturing Today
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12 June 20253 min readGm Adjusts Course On Evs With Major $4B Investment For Factory Upgrades
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Us Sees Unprecedented $270 Billion In Manufacturing PlansSubscribe to our free newsletter today to keep up to date with the latest manufacturing news.
Fifteen of the world’s leading pharmaceutical companies are collectively investing more than $270 billion into US-based manufacturing and research infrastructure. This wave of capital is reshaping the American industrial landscape as drugmakers recalibrate their global strategies to reduce reliance on international supply chains.
Spanning a five- to ten-year timeline, this investment boom signals not only a reassertion of domestic control over critical drug manufacturing but also a response to rising geopolitical uncertainties. The United States, long a hub for pharmaceutical innovation, is rapidly becoming the center of production as well.
This reshoring movement is not occurring in a vacuum. At the heart of the decision lies the looming prospect of tariffs on imported pharmaceuticals, a policy gaining traction among lawmakers advocating for reduced foreign dependency. For global drug manufacturers, the risk of punitive costs on overseas production has accelerated plans to relocate or build anew within US borders.
COVID-19 further exposed the fragility of transnational supply chains, especially in the pharmaceutical sector. Supply interruptions for active pharmaceutical ingredients and final products prompted an industry-wide reassessment of logistics models. With domestic production, firms can better control operations, respond faster to demand shifts, and secure approvals more efficiently from regulatory bodies like the FDA.
While capital is flowing, execution hinges on two essential elements: infrastructure and workforce. Biomanufacturing facilities differ significantly from standard industrial properties. They require abundant utilities such as high-capacity water systems, robust electricity grids, and extensive wastewater treatment capabilities.
These needs create a geographic constraint. Not all regions can accommodate the utility loads or zoning requirements, leading firms to cluster in biopharma-friendly zones. States with proactive industrial policies and infrastructure investments, such as North Carolina and Massachusetts, are emerging as preferred locations.
Equally pressing is the labor component. The biotechnology and pharmaceutical sectors face a dual challenge: filling frontline operational roles while competing for highly educated researchers and scientists. Talent shortages in both areas could delay construction and production timelines. To address this, several companies are partnering with local colleges and technical schools to develop workforce pipelines.
This $270 billion push is already affecting the industrial real estate market. By the end of 2025, that share is projected to reach 18.8%. That growth reflects how the pharmaceutical and life sciences sectors are driving a change in facility design and geographic distribution.
Real estate developers are adjusting by creating speculative projects tailored to biomanufacturing tenants. This includes integrating higher floor-load capacities, tighter air quality controls, and proximity to major research universities. The shift is especially visible in second-tier markets that previously had minimal exposure to the life sciences industry.
The strategic return of drug production to the United States may mark the beginning of a new era in domestic pharmaceutical manufacturing. Beyond reducing dependency on international suppliers, the movement could influence global pricing models, harmonize regulatory frameworks, and accelerate adoption of advanced manufacturing technologies.
Sources:
Manufacturing Today
factory
12 June 20253 min readUs Sees Unprecedented $270 Billion In Manufacturing Plans
Manufacturing Today
12 June 2025
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