Recent and upcoming investment in Mexico

Information collected from media reports over the last month:

  • Vegetable oil: U.S. agricultural commodities trader Cargill expanded its grain processing plant in the central state of Hidalgo to include an additional production and bottling line. The US$16 million upgrade will produce vegetable oil principally to supply Walmart stores, the company reported. (Expansión, March 28, 2019)
  • Railroad: Mexico’s Grupo México corporate group reported investment plans totaling approximately US$555 million to support its railroad subsidiaries Ferromex and Ferrosur. Areas targeted for upgrades include locomotive maintenance, track materials and rehabilitation, new rolling stock and related equipment and land purchases. (Reforma, March 27, 2019)
  • Ports: Major new infrastructure under construction at the Port of Veracruz on Mexico’s Gulf coast will begin entering operation later this year, the Veracruz Port Customs Agents Association reported. The US$3.7 billion upgrade includes four new specialized terminals for fluids, bulk agricultural products, bulk mineral products and containerized and loose cargo. (Reforma, March 25, 2019)
  • Oil refining: The Mexican government invited international companies to bid on the construction of a new oil refinery in the southeastern Gulf coast state of Tabasco. The project, estimated to require investment of US$6 – 8 billion, will include 17 processing plants, 19 storage tanks, a rail line and ship docking facilities. (Reuters, March 18, 2019)
  • Manufacturing: Mexican construction finishings manufacturer Lamosa announced a US$100 million investment plan that includes US$23.3 million to support Mexico operations. The company produces ceramic tile, adhesives and flooring materials at 13 production plants in Mexico. (Reforma, March 14, 2019)
  • Logistics: German logistics multinational DHL will invest US$30 million in Mexico operations this year, the company reported. Projects include upgrades to distribution infrastructure, retail locations, security, operations technology and client interface equipment. (El Financiero, March 14, 2019)
  • Retail: Walmart de México y Centroamérica, subsidiary of global retail leader Walmart, reported plans for approximately US$1 billion in investment in 2019. Resources will support upgrading equipment for stores and distribution centers, particularly with regard to strengthening omnichannel infrastructure. (Milenio, March 12, 2019)
  • Petroleum: Servicios de Extracción Petrolera Lifting de México, subsidiary of Mexican oilfield services provider Cotemar, plans approximately US$66 million in investment to drill six new oil wells in the eastern Gulf state of Veracruz, the company reported.  Outlays are expected to support drilling and well maintenance operations. (El Financiero, March 8, 2019)
  • Retail: DIY and hardware retailer The Home Depot, the leader in its segment in Mexico, reported plans to invest approximately US$100 million to expand and upgrade operations in the country in 2019. Resources will support opening at least two physical stores as well as strengthening the chain’s omnichannel infrastructure and operations. (Reforma, March 7, 2019)
  • Automotive: Chinese auto parts maker Hangzhou XZB Tech Co. inaugurated a new manufacturing plant in the northeastern state of Nuevo León, the state government reported. The US$9 million site is expected to produce engine components such as valve keys, valve spring retainers, hydraulic lash adjusters, roller finger followers, mechanical valve lifters and transmission parts. (Manufactura, March 4, 2019)
  • Brewing: Mexican brewer Grupo Modelo, subsidiary of Belgium-based brewing multinational Anheuser-Busch InBev, inaugurated a new beer brewery in the central state of Hidalgo. The US$730 million plant is the company’s eighth in Mexico and reportedly aspires to become the world’s second largest brewery by production volume. (Expansión, March 4, 2019)
  • Gasoline: Spanish energy and petroleum company Repsol plans to expand its network of gasoline filling stations in Mexico to up to 400 locations by the end of the current year, the company reported. Repsol seeks to achieve a market share of 8 – 10% in the country via investment of approximately US$417 million in the long term. (El Financiero, March 4, 2019)
  • Logistics: Mexican pharmacy operator Farmacias Guadalajara plans to establish its third distribution center in the central state of Hidalgo this year, the company reported. The US$96 million facility will help supply the chain’s sales locations in 30 of the country’s 32 states. (Reforma, March 4, 2019)
  • Retail: Leading Mexican grocery and general merchandise retailer Soriana reported investment plans of approximately US$115 million for the current year. Projects will include store remodels and upgrades as well as improvements to operational technology. (Reforma, March 1, 2019)
  • Glass: French glass maker Saint-Gobain inaugurated a new production plant in the southern state of Morelos, the company reported. The US$35 million “jumbo coater” facility will produce high-value-added large scale architectural glass. (El Financiero, March 4, 2019)

 

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