A leading Israeli precision agriculture company, Netafim, has officially opened one of its largest production facilities in Hermosillo, Mexico, marking a significant expansion of its manufacturing network across the Americas.
The new 30,000-square-meter plant is designed to serve farmers throughout North and Central America, strengthening the company’s ability to meet rising demand for efficient irrigation technologies amid global water scarcity concerns.
High-Tech Factory Aims to Boost Efficiency and Regional Supply Chains
Equipped with advanced automation systems, the Hermosillo facility is expected to enhance production quality, operational efficiency, and supply reliability, according to the company’s announcement.
Management said the investment is not only about scaling output but also about embedding smarter manufacturing processes into its global operations.
The facility is expected to generate around 200 direct jobs, while also stimulating growth among local suppliers, logistics providers, and service companies in the region.
Company leadership described the expansion as part of a broader strategy to deepen its presence in key agricultural markets across the Americas.
Leadership Frames Mexico Expansion as Strategic Growth Milestone
Speaking at the inauguration, Netafim CEO and President Gaby Miodownik said the new plant represents a key milestone in the company’s international development and long-term growth strategy.
He emphasized that expanding manufacturing capacity in Mexico strengthens the company’s global footprint while reinforcing its commitment to innovation in agriculture technology.
Executives also highlighted that the investment aligns with the broader ambitions of its parent company, Orbia, which continues to prioritize expansion in precision agriculture solutions.
From Israeli Kibbutz Origins to a Global Agri-Tech Powerhouse
Founded in 1965 in Kibbutz Hatzerim, Netafim grew from a small agricultural innovation project into a global leader in drip irrigation technology.
The company pioneered systems that deliver water directly to plant roots in precise quantities, a method widely credited with revolutionizing water efficiency in farming.
Today, Netafim operates 19 manufacturing plants, multiple recycling facilities, and dozens of subsidiaries worldwide, employing thousands of workers across its international network.
Corporate Ownership and Strategic Direction Under Orbia
Since 2017, Netafim has been owned by Mexican industrial conglomerate Orbia, which acquired an 80% stake in the company, while Kibbutz Hatzerim retained the remaining share.
The acquisition valued Netafim at approximately $1.5 billion and positioned it within Orbia’s broader portfolio, which spans agriculture, infrastructure, and advanced materials sectors.
Company officials say the Mexican ownership structure has helped accelerate investment in key growth markets, including the Americas.
Previous Ownership Talks and Industry Interest in Netafim
In recent months, reports indicated that Orbia had explored potential divestment options for parts of its stake in Netafim as it looked to reduce financial leverage.
Negotiations with Israeli private equity group Fortissimo reportedly failed to reach agreement, despite earlier interest in acquiring the company at a lower valuation range.
Separately, discussions also emerged involving Chinese investor Haoyu Wang, a water conservation industry figure who has led irrigation-focused enterprises for nearly a decade.
Although no deal has been finalized, industry analysts suggest Netafim’s strategic importance in water-efficient agriculture continues to attract global investor attention.
Global Demand for Water-Efficient Farming Drives Expansion
The expansion into Mexico reflects growing global pressure on agriculture to adopt more sustainable irrigation systems amid worsening drought conditions and climate variability.
By increasing production capacity closer to key agricultural markets, Netafim aims to strengthen its position in the competitive precision agriculture sector.
With its latest facility now operational, the company is betting that demand for water-saving technologies will continue to rise across North and Central America, reinforcing its role as a major player in the future of global food production.
