"We believe that we can be more efficient if we can supply units from here" to the region, Carlos Pardo, the chief executive of Shacman Mexico, told Reuters in an interview.

Shacman's decision to set up shop in the central state of Hidalgo comes as other Asian firms, including Taiwan-based electronics manufacturers Foxconn and Pegatron, eye new plants in Mexico amid a U.S.-China trade war and coronavirus pandemic that have prompted firms to reexamine global supply chains.

"Obviously the issue with China confirmed our decision," Pardo said, when asked if the disruptions in global supply chains due to the pandemic motivated the firm to build its first plant in Mexico.

Over the next five years, Shacman aims to sell in Mexico 5,000 trucks, each costing about $120,000 and powered by compressed and liquefied natural gas, which will offer fuel savings of up to 40% over conventional trucks.

"Our big challenge and goal is to conquer the American market, the United States and Canada," Pardo said, adding the plan was expected to take three or four years.

By Sharay Angulo and Anthony Esposito