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Recent and upcoming investment in Mexico

Apr 3

Posted by Tom in Energy, Investment, Manufacturing | No Comments

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Information collected from media reports over the past month:

  • Beverage: Mexican beverage producer Organización Cultiba, exclusive bottler for PepsiCo in Mexico, plans investment of approximately US$157 million in Mexico operations this year.  Resources will be channelled into bottling and distribution operations as well as sugar cane production, the company reported.  (Mexican Business Web, March 6, 2013)
  • Telecommunications: Swedish telecommunications giant Ericsson opened a new Global Service Center in the central state of Queretaro.  The US$13 million center is one of four such sites worldwide, and will provide planning, design, implementation and support services to customers in the Americas and Europe , according to the company’s announcement. (TMC News, Ericsson, February 27, 2013)
  • Automotive: German auto parts manufacturer Hella will open a new production plant in the central state of Guanajuato this year, the company announced.  The US$100 million project is planned to produce headlamps and rear combination lamps for automotive OEMs in the region. (ProMexico, March 5, 2013)
  • Financial services: Spanish-owned bank Bancomer will invest approximately US$3.5 billion over the next four years to expand and upgrade operations in Mexico, the company announced.  Plans include renovating all retail branches in in the country,  upgrading technology platforms for data processing and completing construction of two new operations centers and a corporate office complex in the Mexico City area. (CNN Expansión, March 21, 2013)
  • Solar energy: Spanish solar energy developer Isofoton has signed an agreement with the government of the southeastern state of Yucatan to design and build a photovoltaic energy generation site in the state.  The US$360 million facility, planned to begin construction in 2014, is projected to produce 150MW once completed. (NAFTA Works, March 2013) Read the rest of this entry »

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Recent and upcoming investment in Mexico

Mar 4

Posted by Tom in Energy, Investment, Manufacturing | No Comments

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Information collected from media reports over the past month:

  • Automotive: Japanese bearings maker NSK will invest approximately US$70 million to construct a new manufacturing plant in the central Mexican state of Guanajuato, the company announced.  The new facility, to begin production in 2014, is planned to supply the regional automotive industry in the face of rising demand from the NAFTA zone auto market.  (Reforma, February 5, 2013)
  • Animal feed: MaltaCleyton, subsidiary of French animal feed maker InVivo, opened a new pet food production plant in the southern state of Morelos.  The US$18 million facility, the company’s tenth in Mexico, will require corn, wheat, sorghum, vitamins, fat, chicken meal and meat, the company reported. (El Financiero, February 21, 2013)
  • Biotechnology: Mexico’s CIMMYT Maize and Wheat Improvement Center inaugurated a US$25 million advanced bioscience research center in the central State of Mexico.  The foundations of magnates Bill Gates and Carlos Slim contributed to the project, which will conduct research in support of seed improvement. (CIMMYT, February 13, 2013)
  • Transportation: The Mexican government plans to issue tenders this year for construction of two major new passenger rail lines at a total estimated cost of approximately US$3.2 billion, the Transport Ministry (SCT) announced.  The lines would run from Mexico City to the central industrial city of Queretaro and from the Yucatan state capital of Merida to the Riviera Maya region on the Caribbean coast. (El Financiero, January 29, 2013)
  • Retail: Coffee shop chain Cielito Querido Cafe, owned by Mexican inter-city passenger bus operator ADO, will invest approximately US$8 million this year to expand operations.  Plans include the opening of 24 new sales locations in the Mexico City metropolitan area. (El Financiero, February 18, 2013)
  • Solar power: Mexican solar panel maker Solartec is investing approximately US$63 million to bring equipment and technology from Belgium to Mexico to produce photovoltaic panels in the central state of Guanajuato.  Outlays will cover purchasing the assets of Belgian manufacturer Photovoltech and relocating them in Mexico to create a new firm to be called Solarcell. (Milenio, February 21, 2013) Read the rest of this entry »

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Recent and upcoming investment in Mexico

Jan 31

Posted by Tom in Energy, Investment, Manufacturing | No Comments

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Information collected from media reports over the past month:

  • Wind power: Japanese investment group Mitsui & Co. announced plans to take a 50% ownership stake in the Mexican wind power generation facility Bii Stinu, currently under construction by a subsidiary of French energy developer EDF Energies Nouvelles.  Mitsui specified the total cost of the project at approximately US$400 million.  (Mitsui & Co., January 9, 2013)
  • Construction: Mexican industrial real estate developer Vesta plans to invest approximately US$90 million to construct industrial buildings for Nissan at the Japanese auto maker’s new production site in the western state of Aguascalientes, the company reported.  (Mexican Business Web, January 14, 2013)
  • Retail: Mexican grocery and general merchandise retailer Grupo Chedraui plans investment of approximately US$185 million in Mexico operations this year, the company revealed.  Projects include the opening of 20 new stores in the country. (Mexican Business Web, January 14, 2013)
  • Health care: Mexican private hospital operator Grupo Star Médica opened a new hospital in the central state of Queretaro, built at a cost of approximately US$47 million.  The facility includes state-of-the-art technology in areas such as medical imaging and obstetrics and gynecology, among others.  Star Médica currently has three other new hospitals under construction. (El Financiero, January 14, 2013)
  • Automotive: German auto maker Volkswagen inaugurated a new production plant in the central Mexican state of Guanajuato following investment of US$500 million.  The plant becomes the company’s 100th factory worldwide and is projected to produce 330,000 motors annually. (El Economista, January 16, 2013) Read the rest of this entry »

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Reshaping the Mexican energy sector

Dec 18

Posted by Tom in Energy, Politics | 2 Comments

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Post by Agathe Vigne for Mexico Business Blog

Shale gasPetroleos Mexicanos (Pemex) and Mexico’s energy sector in general are bound to evolve in the next six years. That was one of Mexico’s newly elected president Enrique Pena Nieto’s  seven campaign promises.  To embody that  change, EPN is counting on two new leaders at the head of the ministry of Energy (Sener) and Pemex.

The new energy minister, Pedro Joaquin Coldwell, is a 62-year-old seasoned politician. A long-time member of the PRI, Coldwell has occupied a variety of positions inside the party and has served as local and federal deputy and senator for the state of Quintana Roo.

On the other hand, 37-year-old Emilio Lozoya Austin has been at the head of private companies and investment funds, as well as Director for Latin America at the World Economic Forum.  Except for his past stint as analyst at Mexico’s Central Bank, Banco de Mexico, Emilio Lozoya has no real experience in government. However, he is the son of a former energy minister under Carlos Salinas de Gortari, Emilio Lozoya Thalmann.

Though their profiles strongly differ – Coldwell, the experienced politician specialized in tourism and development, and Lozoya, the young financial shark – they  have one thing in common: they are new to the energy sector.  That could be seen as a weakness, as critics already warn of the privatization of Pemex and the uncontrolled selling of national resources to transnational companies. Read the rest of this entry »

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Recent and upcoming investment in Mexico

Dec 3

Posted by Tom in Energy, Investment, Manufacturing | No Comments

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Information collected from media reports over the past month:

  • Pharmaceutical: Mexican pharmaceutical group Neolpharma inaugurated a new production plant in Mexico City, the company reported.  The US$20 million facility will produce oral and intravenous solutions as well as providing bottling services to other pharmaceutical manufacturers in the area. (Reforma, October 30, 2012)
  • Wind energy: Mexican multinational baking giant Grupo Bimbo inaugurated a new wind power generation plant in the southern state of Oaxaca.  The US$200 million facility boasts installed capacity of 90 Mw and was built by the Mexican subsidiary of Spain’s Renovalia Energy. (CNN Expansión, October 31, 2012)
  • Real estate: The Riviera Nayarit region of Mexico’s Pacific coast has approximately US$160 million worth of new hotel development either underway or projected, the Riviera Nayarit Convention and Visitors Office reported.  Projects include new hotels for chains such as Iberostar, Occidental Grand and Palladium in locations such as Nuevo Vallarta, Bahía Banderas and Litubú. (Mexican Business Web, November 5, 2012)
  • Solar energy: Mexican airport operator Grupo Aeroportuario Centro Norte (OMA) inaugurated a solar power generating park on the site of its international airport in the northern city of Zacatecas.  The US$1 million installation is projected to supply the airport with 370,000 Kw/h per year, according to OMA. (Grupo Aeroportuario Centro Norte, November 1, 2012)
  • Automotive: U.S. auto components manufacturer Johnson Controls will establish a new manufacturing operation in the central state of Queretaro via investment of US$15 million, the state government announced.  (Mexican Business Web, November 7, 2012) Read the rest of this entry »

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Mexico’s deepwater reserves: oil for all and forever?

Oct 30

Posted by Tom in Energy | No Comments

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Pemex

Agathe Vigne returns with some thoughts on recent reports of new deepwater petroleum reserve discoveries in Mexico.

In its last energy security report, the U.S. Chamber of Commerce pointed to Mexico as the most energy-secure country in the OECD.  The writers of the report underscored various factors reinforcing the country’s energy security: the existence of large shale resources in the north of the country, recent deepwater discoveries and low energy expenditures and carbon emissions per capita.

The report highlights the importance of Mexico as the world’s seventh largest oil producer (according to the OECD), and to the country’s efforts to support the development of alternative energies.

The context is very favorable for Mexico’s O&G sector. Indeed, President Felipe Calderon announced the discovery of two new deepwater fields: Trion I (est. 250 – 400 mn barrels) and Supremus I (est. 75 – 175 mn barrels), both drilled in the Perdido fold belt area. In parallel, the exploitation of mature fields and shale gas reserves should help compensate for the declining production of the country’s principal oil field, Cantarell.

Nevertheless, the U.S. Chamber of Commerce’s report is not as positive for Mexico as it might seem.  The report states that “Mexico’s energy security risks…are worsening at a faster rate than for the OECD as a whole.  As a result, Mexico’s advantages are shrinking: From a 1980 score 34% better than the OECD average, Mexico’s score in 2010 was just 14% better.”  Apart from Cantarell’s sharp production decline, the report cites factors threatening Mexico’s energy security, such as the need to import natural gas and coal, political choices favoring thermal power and increased per capita consumption.

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Towards a Brazilian model for Petroleos Mexicanos?

Sep 21

Posted by Tom in Energy, Investment, Politics | No Comments

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This week we are pleased to feature a guest post by our colleague Agathe Vigne, a trade consultant specialized in the oil and gas industry.

The times they are a changin'

The times they are a changin'

Mexico’s national oil and gas company Petroleos Mexicanos (Pemex) has represented a dilemma for Mexican governments over the past decades. Every proposed reform is subject to a large debate throughout society on whether or not to privatize the “national treasure.”

While Vicente Fox sagely compared Pemex to the Virgin of Guadalupe, both “symbols for Mexicans that should be handled with care,” President Felipe Calderon tried a more direct approach with 2008’s energy reform. Debate over the bill came to its peak with the occupation of the national assembly and the subsequent withdrawal of the most controversial aspects of the text.

While on an official visit to Brazil this past September 19, President-elect Enrique Peña Nieto (EPN) has again mentioned the possibility of a reform that would allow for more private investment in the company. “What I am suggesting is Pemex’s modernization,” he said, “It is not about privatization, it is a mechanism that facitilitates private sector participation.”  His idea is to increase the national company’s competitiveness through a gradual partial opening to international stock markets. (El Universal, September 20, 2012)

This declaration follows the opinion expressed by Pemex’s general director  Juan Jose Suarez Coppel on the eve of the Mexican Oil Congress, that took place from September 10 to September 15.  Suarez Coppel brought up three options for Pemex’s future: Read the rest of this entry »

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Recent and upcoming investment in Mexico

Sep 5

Posted by Tom in Energy, Investment, Manufacturing | No Comments

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Information collected from media reports over the past month:

  • Wind energy: Mexican hydroelectric developer Comexhidro and U.S. investment firm Conduit Capital Partners will team up to develop a 22 Mw wind generation facility in the northeastern Mexican state of Nuevo León.  The plant is planned to use eight General Electric turbines and provide electricity for public lighting in the municipality of Santa Catarina. (El Financiero, July 27, 2012)
  • Automotive: Korean auto maker Hyundai Motors began construction on a new manufacturing plant in the northern city of Tijuana, on the Mexican border with California.  The US$131 million facility is planned to produce die cast aluminum parts such as engine blocks, heads and transmission cases. (El Economista, August 28, 2012)
  • Research & Development: U.S. corporate group 3M inaugurated a new Innovation Center in Mexico City’s Santa Fe business district.  The center, part of planned 3M investments totaling US$184 million over the next five years, will carry out research and product development in areas such as nanotechnology, specialized materials, biotechnology and electromechanics, the company reported.  (Reforma, August 28, 2012)
  • Chemicals: U.S. mixer of custom rubber compounds Preferred Compounding has entered the Mexican market via the acquisition of a 66,000 square foot production facility in the central state of San Luís Potosi, the company announced.  The fully functioning facility will provide custom compounds to customers in industries such as automotive, construction, power generation and roll goods. (Preferred Compounding, July 2012)
  • Automotive: U.S. auto maker General Motors announced it will invest US$120 million in its manufacturing plant in the central state of San Luís Potosí to produce its new Chevrolet Trax SUV crossover model, to be unveiled later this year at the Paris Motor Show.  Another US$200 million will be channeled into the GM plant in Guanajuato state to develop and produce a new generation of pickups in 2013, the company revealed. (Reuters, July 19, 2012) Read the rest of this entry »

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Mexico dips toe in marine energy waters

Aug 9

Posted by Tom in Energy | 1 Comment

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Wave powerMexico has lagged behind Brazil in the development of renewable energy resources, but progress is being made in a number of areas.  From updated legislation allowing net metering to a veritable boom in wind farms, the country is definitely moving forward despite a public policy environment that is not always favorable.  Here at Mexico Business Blog we’ve touched on various renewable energy topics in recent years, from solar and wind to methane recovery, and we’ve researched liquid bio-fuels and biomass fuels as well.  Along the way, we realized we haven’t heard much about marine energy development in Mexico, despite the country’s nearly 5,800 miles of coastline.  So we decided to take a dip into the murky waters of publicly available information, and here’s what we found: Read the rest of this entry »

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Recent and upcoming investment in Mexico

Jun 1

Posted by Tom in Energy, Investment, Manufacturing | No Comments

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Information collected from media reports over the past month:

  • Plastics: Mexican chemical and plastics maker Alpek will invest approximately US$2 billion over the next four years in petrochemical infrastructure and electricity generation, the company announced.  Mexico’s largest petrochemical group plans to boost output of ethylenglycol and PET plastic, among other projects. (Mexican Business Web, May 9, 2012)
  • Automotive: U.S. automotive fiber products manufacturer Janesville Acoustics inaugurated a new production facility in the central Mexican state of Guanajuato.  The US$4.5 million plant will produce fiber products to manage vehicle acoustic performance for the area’s thriving automotive manufacturing industry. (Automotive Business Review, May 15, 2012)
  • Retail: Leading Mexican grocery and general merchandise retailer Chedraui will invest approximately US$220 – 260 million this year in expansion and upgrades, the company reported.  Resources are earmarked for the opening of 16 new stores and maintenance systems for existing sites. (El Financiero, May 10, 2012)
  • Automotive: German corrugated pipe manufacturer invested US$3.7 million of a planned US$7 million to begin operations at a new production plant in the central state of Guanajuato.  The facility will produce fluid transfer and cable protection systems for automotive and industrial applications. (El Economista, April 25, 2012)
  • Energy: Mexican grocery and general merchandise retailer Soriana will begin construction this month on a wind energy plant in the northern state of Tamaulipas.  The US$100 million generating plant will be built in association with wind energy developer Compañía Eólica de Tamaulipas (CETSA).  (Milenio, May 16, 2012) Read the rest of this entry »

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