Mexico Business Blog

Archive for category Investment

Will beachfront property reform bring the end of the fideicomiso?

May 13

Posted by Tom in Investment, Politics | No Comments

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Step away from the perimeter

Step away from the perimeter

Since bursting out of the gates on December 1, 2012, the Mexican administration headed by President Enrique Peña Nieto of the Partido Revolucionario Institucional (PRI) has gone so totally loco with reform initiatives that they’re starting to bunch up in Congress like a Talladega pileup.  As we discussed in a recent post, it’s remarkable how the new government seems to be taking on everyone and everything at once, including long-time PRI allies and interests heretofore so entrenched that they’re considered national institutions, such as Telmex and Televisa.  Of course, once you start combing through the nuts and bolts of the reforms, often they are not as radical as they are portrayed superficially and provide safety nets of sorts for the affected parties.  Peña and his team have intimated that there are no more sacred cows.  Here in Mexico, however, there are sacred cows and then there are supernaturally venerated pulsating bovine deities like the state oil monopoly, and the mere suggestion that perhaps it’s time they visit the slaughterhouse unleashes truly riotous rending of garments.  Peña’s highly anticipated energy reform is still a ways off as the administration heads into its running start, but in the meantime, the PRI is whetting our appetite with the legislative equivalent of a warmup band: a proposal that would amend the Mexican Constitution to allow foreigners to buy beachfront property in their own names. Read the rest of this entry »

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Recent and upcoming investment in Mexico

May 2

Posted by Tom in Investment, Manufacturing | No Comments

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Information collected from media reports over the past month:

  • Hotels: U.S. luxury resort developer AM Resorts plans investment of approximately US$500 million in Mexico over the next three years, the company reported.  Locations for new developments under the company’s brands, which include Secrets, Dreams, Now and Sunscape, include Los Cabos and the Riviera Maya beaches of Akumal and Playa Mujeres. (Reforma, April 1, 2013)
  • Airports: Mexican airport operator Grupo Aeroportuario del Pacífico (GAP) will invest US$40 million to upgrade its international airport in the western city of Guadalajara.  Projects include expansion of capacity to receive international flights and two new departure gates, the company reported. (Reforma, April 1, 2013)
  • Beverage: Mexican beverage bottler Arca Continental, the world’s third largest bottler of Coca Cola, plans investment of approximately US$340 million this year.  Resources will be dedicated to maintenance and upgrades of bottling plants, and may include acquisitions abroad in the beverage and snack sector, the company reported. (Mexican Business Web, April 19, 2013)
  • Aviation: Mexican airlines plan investment of approximately US$20 billion to purchase up to 250 new aircraft, the National Air Transport Chamber (Canaero) reported.  Aeromexico plans purchases from Boeing, Interjet projects buys from Airbus and Sukhoi, and airlines Volaris, VivaAerobus and others also plan acquisitions, Canaero reported. (El Financiero, April 1, 2013)
  • Electrical: French electrical engineering multinational Schneider Electric will invest US$80 million in Mexico this year, the company reported.  Projects include completion of a research center in Monterrey as well as work on plants and clean energy projects for state-owned oil monopoly Petroleos Mexicanos (Pemex). (Reforma, April 8, 2013) Read the rest of this entry »

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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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Media goes ga ga for bright future in Mexico

Feb 18

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

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Lookin' good

Lookin' good

As we have crabbed before in this space, for the longest time it seemed like all you ever saw in the press about Mexico was nasty news about drug trafficking violence.  But at some point in 2012, it was like a new memo went out (and maybe one did), and all of a sudden stories started popping up about Mexico’s economic progress, bright future, and flashy manufacturing industries.  It’s not like our problems have gone away – they certainly have not – but it is nice to see something more positive in the media for once.  After a while we started collecting these stories to enjoy time and time again, so we thought we’d share them so that you can enjoy them as much as we have.

Go on, have a look.  Let’s savor our spell in the golden light of favor while it lasts: 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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Mexichem and Pemex to launch PVC joint venture

Jan 21

Posted by Tom in Investment, Manufacturing | No Comments

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Resistance is futile

Resistance is futile

Mexico’s state-owned oil and gas monopoly Petroleos Mexicanos (Pemex) announced recently that it’s board of directors finally approved a proposed joint venture with Mexican chemicals and plastics giant Mexichem to produce vinyl chloride monomer (VCM), a key component for the manufacture of polyvinyl chloride plastic, commonly known as PVC.

The long-suffering proposal first required approval by Mexico’s Federal Competition Commission (CFC), which it obtained over a year ago, and then was stalled for months as the national oil workers union picked over the details undecided.  Mexichem began making noises about bagging the project late last year, apparently prodding the union to get off the schneid and clear the way for approval by the board.  The actual venture is reportedly planned as a collaboration between Mexichem and Pemex petrochemical subsidiary Pemex Petroquímica.  Under the terms of the deal reported in local media, Pemex will contribute US$235 million worth of production infrastructure at its Pajaritos, Veracruz petrochemical complex, and Mexichem will provide approximately US$320 million worth of cash and assets to bring the new plant into operation.  The new company is planned to be formally constituted this year. Read the rest of this entry »

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Recent and upcoming investment in Mexico

Jan 2

Posted by Tom in Investment, Manufacturing | No Comments

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Information collected from media reports over the past month:

  • Healthcare: Mexican hospital operator Grupo Médica Sur will build a major new medical complex in Mexico City, the company announced.  The project is planned to include a hospital, research center, university, hotel, offices, apartments and retail space.  US$70 million in investment is estimated for the first phase of construction.  (Reforma, November 29, 2012)
  • Franchising: U.S. restaurant chain Chili’s Grill & Bar plans investment of US$12 million in Mexico operations next year.  The company plans to open 12 new locations through its Mexican franchise operators. (El Financiero, November 29, 2012)
  • Aerospace: Italian aeronautical welding specialists OVS Villella revealed plans to establish a production plant in Mexico by 2014.  The company will partner with Mexican metal process supplier EZI Metales on the US$14 million investment. (El Financiero, November 29, 2012)
  • Pharmaceutical: Swiss pharmaceutical manufacturer Novartis plans investment totaling US$10 million in Mexico in 2013, the company reported.  Resources will support research and development principally in immunology, oncology and chronic obstructive pulmonary disease (COPD). (Milenio, December 6, 2012)
  • Automotive: Japanese automotive components manufacturer GSW manufacturing initiated construction on a new production plant in the central state of Guanajuato.  The US$2.15 million facility is planned to produce wiring harnesses for vehicles beginning in 2013. (El Financiero, November 29, 2012) 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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G20 Trade & Investment Promotion Summit held in Mexico City

Nov 20

Posted by Tom in Investment, Trade | No Comments

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G20 SummitEarlier this month, Mexico Business Blog was invited to cover the G20 Trade and Investment Promotion Summit held in Mexico City.  The summit was composed of a series of meetings between representatives of trade and investment promotion organizations from a number of G20 countries, as well as from multilateral finance and cooperation organizations.  From the portion of activities we were able to observe, we found the remarks by WTO Chief of Staff Arancha González regarding Global Value Chains to be the most interesting.  Read our post for Mexico Today on the event here.

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