Visteon Unveils €10 Million Tech Hub in Palmela, Plans Further Expansion
Automotive electronics supplier Visteon officially inaugurated a new, state-of-the-art building at its Palmela complex on Thursday, representing a €10 million investment in the region's technological capacity. The project is slated to create over 150 new jobs over the next two years, focusing on the development of next-generation vehicle cockpit electronics and connected car technologies. The announcement was made during a ceremony attended by company executives and local government officials.
The new two-story facility is a cornerstone of Visteon's strategy to enhance its production capabilities, particularly in the rapidly growing electric vehicle sector. João Paulo Ribeiro, a Visteon vice-president, detailed the project's scope, stating that the investment reinforces the Palmela factory's position as the company's largest and most complex manufacturing site globally. "This new space is a technological leverage that will allow us to enter the electrification zone more quickly, with internal production," Ribeiro explained. He emphasized that the expansion would ensure Visteon remains at the forefront of automotive technology while contributing to local economic growth through job creation.
The project specifications detail a modern facility designed to house advanced research and development teams as well as sophisticated production lines. The construction was completed on an accelerated timeline, a factor Palmela's mayor, Álvaro Amaro, highlighted as a key competitive advantage for the municipality. "We are talking about projects that had to be approved in record time, in a context of great competitiveness with other countries," Amaro stated. He credited the successful collaboration between the municipality and Visteon for ensuring the investment remained in Portugal, rather than being allocated to facilities in neighboring Spain or other Western European nations.
The architectural design of the new building focuses on operational efficiency and creating a collaborative environment for Visteon's engineering and production teams. The financing for the €10 million project was secured as part of Visteon's global capital investment strategy, reflecting the company's confidence in the skills and infrastructure available in the Lisbon metropolitan area. Regulatory approvals were fast-tracked by municipal services, which the mayor noted was a result of his personal and technical involvement to ensure a smooth process.
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Visteon also used the occasion to announce further development plans for the Palmela site, signaling a long-term commitment. Beginning in 2026, the company will undertake a significant expansion of its existing photovoltaic plant, increasing its capacity from 880 KVA to 1750 KVA. This initiative is aimed at reducing energy costs and improving the site's environmental sustainability. Following this, an 1,850-square-meter expansion of the magnesium (thixo) factory is planned, along with the construction of a new 550-square-meter painting unit. These future projects represent a multi-year investment pipeline that will further solidify Palmela's role as a critical industrial hub.
The expansion is expected to have a considerable local economic impact, not only through direct employment but also by strengthening the local supply chain. The creation of 150 skilled positions will attract talent to the region, likely increasing demand in the local housing market. The project underscores the industrial strength of the Setúbal Peninsula and its importance within Portugal's national economy. The construction of the new building and the planned expansions adhere to modern quality standards and methodologies, ensuring the facility's long-term viability and competitiveness.
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