A Japanese plastics manufacturer plans to set up a new factory in the expanding Southside manufacturing hub, boosting production and regional growth.
A Japanese manufacturer, Sanko Co., Ltd., has officially begun development of a new production facility on the South Side of San Antonio, reinforcing the region’s growing status as a manufacturing center.
The planned investment of about $40 million is expected to create up to 300 jobs. The facility will be constructed on a 43.7-acre site at the intersection of Applewhite and Watson roads, directly across from the entrance to Toyota’s local manufacturing plant. According to company president and CEO Toshihiko Goto, the project is currently in the design phase, with completion targeted for 2027. The plant will produce plastic pallets and logistics containers.
Local authorities approved incentives to support the project. In June 2025, Bexar County granted a 10-year tax abatement valued at approximately $850,000, covering 75% of certain real and personal property investments. County Judge Peter Sakai stated that the incentives would generate strong economic returns through job creation and higher wages. Company filings indicate at least 50 employees could earn salaries exceeding $60,000 annually as a result of the savings from the program.
Sakai also emphasized efforts to strengthen ties with Japanese businesses, including outreach during a 2024 economic development visit to Japan. Workforce training initiatives such as the TX Fast Track program were highlighted as key factors in attracting manufacturers. Graduates from the program have already secured positions with companies like JCB, which is building a nearby plant.
Sanko intends to supply plastic components to Toyota’s San Antonio operations. Currently, the automaker imports similar products, so local production is expected to improve efficiency. Although Sanko operates an office in San Diego and a manufacturing site in Mexico, this project marks its first factory in the United States, with Texas serving as its initial expansion focus.
Officials also pointed to the broader industrial growth in the South Side area. Since Toyota launched operations there in 2006, numerous suppliers and manufacturers have followed. Additional developments under consideration include a large industrial facility at Brooks.
Community leaders noted that new manufacturing investments help support small businesses, strengthen workforce opportunities, and improve regional economic stability. San Antonio Mayor Gina Ortiz Jones highlighted the importance of infrastructure improvements, housing affordability, and transportation upgrades to maintain competitiveness and attract further international investment.