By Elijah Noriega

RIO GRANDE VALLEY, TEXAS – MARCH 30, 2026 – Valeo, a France-based automotive supplier, announced Tuesday, March 24, that it will establish a major facility in McAllen, creating new career pathways for students at The University of Texas Rio Grande Valley.

Both McAllen and Valeo officials said the partnership has been months in the making, with collaboration between UTRGV and local economic development teams playing a key role. 

“The reason behind the decision in the Valley is it has the workforce, community, and readiness for the project,” said Valeo Chief Executive Officer Jeffrey Shay. 

Construction has begun on a 337,000-square-foot facility at the corner of Ware Road and Idela Avenue. The $225 million project is expected to create hundreds of jobs, with production slated to begin in 2027.

With an enrollment of 35,000 students and rapidly growing programs, UTRGV demonstrated it could meet that demand, said Ron Garza, UTRGV senior associate vice president for Workforce and Economic Development and a member of the team who helped bring the company to South Texas. 

“The number one thing that always rises to the top is: will I have the workforce in place? The thing that they quickly learned about, which was not only the magnitude of the quality of our students, but how large we are, they were just blown away.” Garza said.

University leaders who attended the press conference at the McAllen Performing Arts Center, said the impact goes far beyond a single company. 

“This brings a lot of opportunities for our students, at both the undergraduate and graduate levels. I think it's going to also help us develop more supply chain components to it,” said Dr. Can (John) Saygin, senior vice president for UTRGV Research and dean of Graduate College. 

As a Tier 1 manufacturer with operations in Mexico and Reynosa, Valeo’s McAllen facility will be its first in the Rio Grande Valley and its first in the United States. It is expected to spark an ecosystem of supporting businesses, creating a ripple effect of job growth and industry expansion across the region.

“So not only does it create hundreds of jobs in the near future, but it's also going to open up a stronger pipeline for more companies to come in and higher-wage jobs for graduates,” Garza said. 

OPPORTUNITIES FOR STUDENTS 

Many students have historically left the Valley to pursue careers in certain fields. Saygin expects the new facility will help reverse that trend by expanding local job opportunities.

“We have students graduating who don't want to leave the Valley. They want to stay here,” Saygin said. “Job opportunities will start with these types of value-added production activities.” 

Now the focus shifts to preparing students before those jobs arrive. Through internships, hands-on training and direct industry collaboration, students will gain early exposure to the tools and systems used by companies like Valeo. 

“From internships to senior design projects to graduate training to job opportunities, it's a great opportunity for the Valley,” he said.

 

Hiring is expected to begin within the next year and ramp up as construction progresses, but leaders say this is just the beginning. 

“I hope this becomes the first drop in the bucket and creates that effect. Whenever a second company and a third company move in, the economic development corporations will have the best day of their lives.” Saygin said. 

For UTRGV students, that “first drop” could mean the difference between leaving home for opportunity or building a future in the Rio Grande Valley.