Nortech Systems (Nasdaq: NSYS) says it has signed a lease on for a new facility to be built in Monterrey, Mexico — about 5 miles from Northech’s present location in the northeastern Mexican city.

Nortech (Maple Grove, Minn.) plans to occupy the facility — which is double the size of the present location — by the third quarter of 2018, transferring operations there by the end of the year.

Nortech has been in Monterrey since 2001. Nortech’s Monterrey operations started out producing wire harnesses and cable assemblies and have steadily grown in employment and capabilities including printed circuit board assemblies and higher-level electronic assemblies.

“We are pleased to strengthen our capabilities with this new, larger facility,” Nortech COO Matt Mahmood said in a news release.

“Nortech has been experiencing strong growth in Mexico, and this expansion shows our commitment to serving multinational customers across a variety of industries with competitive, flexible manufacturing solutions.”

Mahmood and other Northech officials expect the new facility to have enhanced productivity and improved workflow. There will be additional space for engineering and more amenities for customers and employees.