New Manufacturing Hub in the Making as Japanese and Texas Companies Plan $39.8 Million Facility in South San Antonio

A transformative project is poised to energize South San Antonio’s industrial landscape, as two manufacturing companies—one rooted in Japan and the other based in Texas—unite to build a state-of-the-art $39.8 million facility. This collaboration marks a significant step in expanding the region’s advanced manufacturing sector and underscores its growing appeal as a destination for global industry leaders.

The Project and Its Location

Set to rise on roughly 43.7 acres of vacant land along Watson Road near Applewhite Road, the proposed facility is strategically positioned near an expanding automotive manufacturing hub. The project will sit just west of a major auto assembly plant, putting it within close proximity to a flourishing ecosystem of suppliers and industry players.

What the Facility Will Produce

The new plant will specialize in producing durable plastic logistics materials including pallets, crates, containers, pails, and battery packaging components. These materials are essential to a wide range of industries that rely on efficient, high-volume product transport and storage solutions.

The facility is planned as a joint venture between the Japanese firm, which is affiliated with a global leader in plastic logistics materials, and a Texas-based company that currently provides manufacturing and supply chain solutions to several high-profile clients.

Job Creation and Economic Incentives

According to documents submitted to county officials earlier this year, the facility is expected to create 50 new jobs through 2029, with 36 of those positions becoming available in 2026. Notably, 42 of the roles will offer salaries ranging from approximately $53,000 to $80,000 annually, with the remaining positions offering even higher compensation.

To support the project, county officials are considering a 10-year, 75% tax abatement estimated at $824,848. The companies are also in talks with the city for additional financial incentives, although specific details on that front have yet to be disclosed.

Competing Cities and Site Selection

In their planning phase, the companies reportedly considered multiple locations—including Austin and San Diego—before selecting the Watson Road property. The final decision, however, is contingent on local incentive approvals. The land was purchased in late April through a collaboration between the companies and a local investment group.

Industrial Collaboration and Community Development

The two firms are reportedly developing the facility as a plastic injection molding plant, though further specifics about the operation remain under wraps. The initiative aligns with the broader regional strategy of creating a dense network of manufacturers in San Antonio’s South Side, where co-location of firms can enhance collaboration and efficiency.

Local economic development leaders emphasize the importance of such ventures in driving economic mobility. High-quality manufacturing jobs are seen as a path for residents to enter or advance in the middle class while strengthening the city’s industrial core.

Automotive Industry Growth in the Region

This project complements major investments already underway in the area. A nearby automotive plant is currently undergoing a $531 million expansion that includes a rear axle assembly line for SUVs and pickups manufactured locally. That upgrade alone will generate more than 400 new jobs and support cross-border operations by supplying components to an affiliated truck production plant in Mexico.

The surrounding campus also hosts an extensive network of suppliers employing around 5,800 workers. While the Japanese firm behind the new plastics facility is an established supplier overseas, it has not yet entered the North American supply chain—though this plant could signal a shift in that direction.

A Broader Manufacturing Boom

Other companies are also capitalizing on the region’s growth. A large commercial truck manufacturing facility was completed near Mitchell Lake in 2022. Meanwhile, a British machinery giant is constructing a 1-million-square-foot plant along Texas Highway 16 to support its growing U.S. operations.

According to regional economic forecasts, the advanced manufacturing sector in the area currently employs approximately 61,000 people and has expanded by 19% over the past five years. Job growth is expected to continue, with an anticipated 15% increase between 2023 and 2028.