Recent and upcoming investment in Mexico

Information collected from media reports over the past month:

  • Automotive: German auto maker Audi inaugurated a major new manufacturing plant in the southeastern state of Puebla. The US$1.3 billion facility will produce the brand’s Q5 premium sports utility vehicle (SUV) for export around the world, according to media reports. (Expansión, September 30, 2016)
  • Technology: U.S. networking technology manufacturer Cisco Systems estimates it will invest up to US$4 billion in Mexico operations over the next two years, the Mexican government reported. Resources reportedly will support increased production  of products such as routers, servers and video-conferencing screens for export to 110 countries. (Bloomberg, September 27, 2016)
  • Electronics: Japanese audio speaker manufacturer Tohoku Pioneer will establish a manufacturing plant in the western state of Jalisco, the Jalisco state government announced. The US$5million production site will be located next to an existing Pioneer Corp. plant producing GPS systems. (Informador, September 27, 2016)
  • Steel: Mexican steel wire producer Deacero is projecting approximately US$300 million in investment over the next two years in Mexico operations. Plans include adding new products to the company’s portfolio, particularly for the automotive industry. (Reforma, September 8, 2016)
  • Solar power: IEnova, the Mexican subsidiary of U.S. natural gas utility Sempra Energy, plans to invest approximately US$150 million in the two energy generation projects it was awarded in a recent government auction. IEnova will build two solar parks in the states of Aguascalientes and Baja California. (El Financiero, September 29, 2016)
  • Casual dining: Mexican casual dining franchise operator Orquest Foods plans to open 60 Papa John’s pizza restaurants in Mexico over the next eight years, the company reported. Orquest recently acquired 26 Papa John’s locations in the Mexico City metropolitan area.  (Reforma, September 9, 2016)
  • Steel: Mexican steel producer Altos Hornos de México (AHMSA) announced it will invest up to US$1 billion over the next two years. The company plans to invest heavily in new process capabilities and expand capacity for production of steel sheeting. (El Financiero, September 7, 2016)
  • Solar power: Spanish renewable energy developer Acciona Energía will partner with Mexican developer Tuto Energy to build a 227 MW solar power generation plant in the northwestern state of Sonora, the company reported. Total investment was not specified for the facility, which is planned to go on line in 2019. (Reuters, September 28, 2016)
  • Manufacturing: U.S. personal care products manufacturer Kimberly-Clark projects investment of approximately US$400 million in Mexico operations during the 2016-2017 period, the company reported. Resources are planned to support projects including expansion of production capacity, process improvements and plant maintenance, as well as acquisitions. (Reforma, September 15, 2016)
  • Retail: DIY/Home improvement retailer The Home Depot is projecting the addition of 20 new stores in Mexico over the next four years, the company reported. The approximately US$133 million expansion would raise the chain’s number of stores in the country to 139. (Reforma, September 7, 2016)
  • Motorcycles: Mexican motorcycle manufacturer Italika reported plans to expand capacity at its production plant by 29% to 645,000 units per year. The company did not specify the amount of investment for the plant expansion, but reported that resources will be allocated to production of sport bikes and a new electric motorcycle. (El Financiero, September 15, 2016)
  • Retail: Market-leading grocery and general merchandise retailer Walmart de México y Centroamérica plans investment of over US$1 billion to expand and upgrade logistics infrastructure, the company reported. Walmart announced a goal of doubling the scale of its operations in Mexico by 2024. (El Financiero, September 26, 2016)
  • Gasoline: The Mexican Association of Service Station Suppliers (AMPES) estimates that 600 new gasoline service stations per year will be constructed over the next 10 years. Mexico’s 2014 energy reform cleared the way for private gas station operators to enter the market to compete with the state-owned former monopoly Petróleos Mexicanos (Pemex). (Reforma, September 2, 2016)
  • Airports: Mexican airport operator Grupo Aeroportuario del Pacífico (GAP) will increase its projected investment in the central state of Guanajuato for the 2014 – 2019 period to approximately US$23 million, the company reported. Growing traffic at the facility due to the region’s expanding industrial base has created the need for extended taxiways and expansion and remodeling of the passenger terminal.  (El Financiero, September 6, 2016)
  • Retail: Mexican grocery and general merchandise retailer La Comer opened its first City Market format sales location outside the Mexico City area, in the central state of Querétaro, via investment of approximately US$6 million. The City Market format is an upscale grocery store targeting upper income consumers with premium quality products and store design. (Reforma, September 22, 2016)
  • Aerospace: U.S. aircraft producer ICON Aircraft announced plans to establish a new manufacturing plant in the northwestern border city of Tijuana. The US$150 million facility is planned to produce its AF model amphibious sport plane beginning in 2017. (Periódico Industrial Siglo 21, September 15, 2016)
  • Wind power: Spanish renewable energy developer Acciona Energía inaugurated a major wind energy generation plant in the north western state of Nuevo León, the company reported. The reported US$650 million complex will have generation capacity of an estimated 252 MW.  (Windpower Engineering, September 13, 2016)
  • Commercial real estate: Mexican commercial real estate developer Gicsa plans to invest approximately US$357 million to develop five new multi-use complexes outside the capital city area, the company reported. In addition to retail space, the format for the developments will include offices, workout centers, entertainment, hotels, hospitals and sports facilities. (El Financiero, September 1, 2016)

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