Upholstery furniture producer Kuka Home has launched Phase I of a planned 2.3 million-square-foot manufacturing and office campus.

A groundbreaking ceremony was held in Nuevo Leon, Mexico, that was attended by Kuka Home management from China, the U.S., and Mexico, along with local employees, customers, suppliers, and state and local government officials.

The groundbreaking launches the company’s expansion of its manufacturing capacity in North America. It recently purchased 90 acres at the Mexico location to construct four facilities for upholstery and mattress production, according to Furniture World News.

For almost two years. Kuka Home has produced upholstered furniture, accent chairs, and upholstered beds on two campuses near Monterrey, Mexico, totaling over 350,000 sq ft, and in their 250,000 sq ft mattress facility.

“This groundbreaking ceremony marks an exciting new chapter for Kuka Home and the beginning of Phase I of the first 360,000-square foot manufacturing and office facility,” said Rain Jin, vice president of International Business at Kuka Home. “Within the next 3 years, this will become Kuka Home’s largest manufacturing base in North America. The facility will integrate research, design, production, and sales. Eventually, it will represent 23% of our global sales,” she said.

Matt Harrison, president of Kuka Home North America, said the company plans to invest more than $200 million into the manufacturing campus. “This calculated investment is based on the support from our diverse customer base telling us they will continue to increase their orders based on the successes they have had with the current Kuka Home product being manufactured in our existing facilities.”