A French auto parts maker will build a $225 million manufacturing plant in McAllen, city leaders announced on Tuesday.

Valeo, based out of Paris, France, is a leading automotive technology company with operations in more than 30 countries worldwide, according to a news release.

The 200,000-square-foot facility is set to be built near Ware Road and Idela Avenue and should be fully operational by January 2027.

The facility is expected to create up to 500 new jobs and “produce transformative automotive technology that advances the future of mobility and strengthens domestic manufacturing capacity,” according to a news release.

“Valeo’s decision to invest in McAllen represents a significant expansion of advanced manufacturing in South Texas and reinforces the city’s position within the regional and binational automotive supply chain,” the news release stated.

“McAllen offers a highly skilled workforce, a strategic location within the North American automotive corridor, and strong collaboration among local and regional partners,” Valeo North America President Jeffrey Shay said in a statement. “This investment will support our customers with advanced, innovative technologies while contributing to the continued growth of the U.S. automotive industry.”