Its subsidiary Bosch Rexroth will produce components for cellular phones and machinery for manufacturing automation at the facility, according to a statement from the company.

The plant will occupy 42,000 square meters (452,080 square feet) and is set to start operations next year, creating more than 900 jobs.

"We will be able to develop a stronger regional supply chain," President and Chief Executive Officer of Bosch Rexroth North America Greg Gumbs said in the statement.

The company has announced investments in Mexico of about 15 billion pesos in recent months to expand plants in the states of Queretaro and Aguascalientes, and a new production site in Nuevo Leon.

($1= 19.9840 Mexican pesos)

(Reporting by Raul Cortes Fernandez; Writing by Valentine Hilaire; editing by Jonathan Oatis)