Mexico Business Blog

Considerations on trade, business, politics and life in Mexico

Archive for category Manufacturing

Recent and upcoming investment

Jul 13

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

Reports on some recent and upcoming investment collected from the local business media:

  • Water treatment:  Mexican sugar producer Grupo Azucarero México (GAM) revealed it will begin construction next month on a new waste water treatment plant.  GAM has invested US$35 million over the past four years in automation process technology, as well as a system for generating electricity through steam produced by burning cane bagasse.
  • Logistics: Guanajuato’s Guanajuato Interior Port multimodal logistics center will enter a new phase of expansion in the coming months.  Approximately US$55 million in new investment will be carried out to expand existing infrastructure at the site, which includes Customs facilities, a free zone, ground and air cargo handling services, industrial yards and related operations.
  • Automotive: German engine components maker Getrag Transmissions Manufacturing inaugurated a new production plant in the central city of Guanajuato.  The US$500 million facility will manufacture transmissions for the Ford Fiesta line being built at Ford’s Cuautitlan Izcalli plant outside Mexico City.
  • Manufacturing: French digital media manufacturer Technicolor will begin making 3D Blu-ray discs for Warner Brothers at its Guadalajara plant this year.  The company is investing US$11.4 million in the plant to boost production capacity.
  • Green building: Mexican developer Homex announced plans to develop four new housing complexes in north western Mexico based on the concept of Integrated Sustainable Urban Developments.  The first of these complexes will require investment of US$27 million and all will incorporate green building technologies.     Read the rest of this entry »

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Mexico hoping yuan appreciation will boost exports

Jun 25

Posted by Tom in Manufacturing, Trade | No Comments

Put me in coach

Put me in coach

In the run-up to this weekend’s G20 meeting in Huntsville, Ontario, much ink has been spilled regarding the value of the Chinese currency.  Economists, pundits and observers of all stripes have taken positions on various sides regarding the question of how much and how fast the yuan (or Renminbi, if you prefer) needs to appreciate against other major currencies.  And, of course, how willing Chinese authorities are to allow this to happen.

Hypothetical scenarios projected in some circles of a rapid appreciation of 40% have China’s export competitors salivating.  Basic trade theory holds that by hiking the value of the yuan, Chinese exports become more expensive, making competing products made in countries such as Mexico that much more cost competitive.  Gaining ground of this type is seen as critical in the hotly disputed U.S. market for goods such as appliances and electronics.  Trade data for 2009 suggests that Mexico is already gaining some overall market share from China in the United States, and we have touched on the relative cost competitiveness between Mexico and China in this space before.

Read the rest of this entry »

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Recent and upcoming investment

Jun 1

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

Reports on some recent and upcoming investment collected from the local business media:

  • Real Estate:  Mexican real estate developer Marhnos announced plans to build up to five office towers in Mexico City over the next five years.  The company is projecting investment of approximately US$1.5 billion in the projects, which will be carried out in alliance with New York-based developers Turner International.
  • Apparel: Sports apparel and footwear maker Grupo Charly is manufacturing in Mexico again after an absence of six years.  The  Mexican company offshored the last of its domestic production to Asia in 2004, but began to move some manufacturing back home last year to improve delivery times.  They project ramping up Mexico production to 600,000 pairs of sports shoes over the next three years.
  • Automotive: Nissan Mexicana has reported plans to invest US$600 million at its plant in Aguascalientes, Mexico, to manufacture a new model car.  The auto maker plans to build 50,000 units annually of the new model, which will include 75% components from domestic suppliers.
  • IT: Mexico’s top telco Telmex announced it will significantly expand its Triara Data Center over the coming two years.  The US$100 million facility provides integrated hosting services, data storage, backup and connectivity solutions to domestic and international corporate clients as well as government agencies.
  • Automotive: U.S. truck maker Navistar announced its Mexican subsidiary Navistar Mexico will increase production by 50% by the end of the current year.  The company’s US$250 million facility in Escobedo, Nuevo Leon is the largest truck and bus chassis manufacturing plant in Latin America. Read the rest of this entry »

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Aerospace meetings set for Guadalajara

May 28

Posted by Tom in Investment, Manufacturing | No Comments

GdlaMexico’s aerospace industry continues to grow aggressively (see our past post on the Tijuana aerospace forum at http://bdp-americas.com/blog/2010/02/aerospace-supplier-forum-set-for-tijuana), and this Fall the sector will achieve another milestone:  Guadalajara will host the first event organized in this country by BCI Aerospace.  The French firm specialized in global promotional events for the aerospace and defense industries will host “Aerospace Meetings Guadalajara” October 4 – 8 at Expo Guadalajara.  The event provides a forum for aircraft manufacturers and potential suppliers to engage in one-on-one meetings, in addition to attending conferences, workshops and tours of Mexican manufacturing facilities.  According to BCI’s brochure, Aerospace Meetings Guadalajara will feature participation by 100 Mexican companies and 150 foreign firms representing a total of 20 countries.  For complete details, the event brochure is available here: www.bciaerospace.com/mexico

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Mexico tops for tax competitiveness?

May 18

Posted by Tom in Investment, Manufacturing | No Comments

Read the fine print

Read the fine print

Here’s one that, we confess, took us by surprise: in a recent study of tax attractiveness for business, when the final numbers were in, Mexico came in at a whopping…wait a moment…(removes glasses, rubs eyes, puts glasses back on)…number one??!!

Well, we are beaming, we must say.  It’s not that we feel Mexico is not tax competitive – it’s just that, well, we’re still a little grumpy after filing our own Mexican corporate and personal taxes earlier this year.  But in KPMG’s Competitive Alternatives 2010 Special Report: Focus on Tax, Mexico is ranked number one, with the lowest Total Tax Index (TTI) based on a study of 95 cities in 10 countries.   The three major tax components under analysis in the report are corporate income tax, other corporate taxes, and statutory labor costs.  Tax systems vary widely from country to country, of course, and the overall tax burden on businesses can vary significantly by industry within a country.  Any attempt to boil down the corporate tax environment to a single index score will be complex, and KPMG addresses the challenges to such an undertaking in detail in their report.  Nonetheless, at least in this document, we are number one, and we must say we are well chuffed.  Now, if we can only keep the momentum going into the World Cup…

For a look at KPMG’s full report, go here.

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Recent and upcoming investment

Apr 29

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

Reports on some recent and upcoming investment collected from the local business media:

  • Beverage:  Mexican beverage giant and retailer FEMSA announced plans for US$750 worth of investment this year.  The lion’s share of the funds will go toward upgrades and expansions of bottling plants, while the remainder will support the company’s Oxxo chain of convenience stores.
  • Automotive:  Chinese autoparts maker Minth opened a manufacturing plant in the northern state of Aguascalientes.  The plant, representing a total investment of US$16 million, is planned to supply molding and interior components to Nissan, Ford, Chrysler and Fiat plants in Mexico.
  • Mining: Mining companies operating in Mexico will invest a combined US$13.8 billion through 2012, according to the Mexican Mining Chamber (Camimex).  The chamber projected that expansions and upgrades of operations in mining zones will contribute toward improvements in roads, electrification, potable water and other basic infrastructure in the areas. Read the rest of this entry »

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Recent and upcoming investment

Apr 7

Posted by Tom in Economy, Investment, Manufacturing | 1 Comment

Reports on some recent and upcoming investment collected from the local business media:

  • Steel:  Mexico’s steel manufacturing industry chamber of commerce Canacero projected investments of US$10 billion over the next five years to significantly boost production in the sector.  Canacero estimates production will increase 13.5% this year over 2009, when output dropped significantly.
  • Airports: The Mexican Ministry of Transport (SCT) announced plans for three new airports to be constructed in 2010, with investment of US$36 million.  The local airport developments are planned for La Pesca in the northeast and the tourist sites Creel in the north and Palenque in the south.
  • Transport: Inter-city bus operator Grupo IAMSA reported it plans to add 300 new luxury buses to its fleet this year.  The US$100 million investment is slated to go primarily to Volvo for the new buses.
  • Aerospace: French aerospace manufacturer Grupo Safran inaugurated two new plants in an aerospace park in the central state of Queretaro, site one of Mexico’s leading aerospace clusters.  The approximately US$150 million investment set up plants for Safran’s affiliates Messier-Dowty and Snecma to produce jet engine parts and undercarriages.
  • Solar power: BP Solar, the solar technology subsidiary of Great Britain-based energy giant BP, announced plans to subcontract the assembly of solar modules with Jabil Circuit in Chihuahua, northern Mexico.  Plans call for producing modules with a combined capacity of 45 MW, with the possibility for expansion as demand dictates. Read the rest of this entry »

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Recent and upcoming investment

Feb 26

Posted by Tom in Investment, Manufacturing | No Comments

Reports on some recent and upcoming investment collected from the local business media:

  • Plastics:  The Manufacturing Industry Chamber of Nuevo Leon (Caintra) announced an initial US$1 million investment to build the Mexican Institute for Technological Innovation in Plastic and Rubber in the Monterrey area.
  • Electronics: IBM formally inaugurated new manufacturing installations in Jalisco developed at an estimated cost of US$20 million.  The facilities are intended specifically for the production of IBM’s high-end XIV Storage Systems for export to the United States, Europe and other areas.
  • Toys: Spanish toy manufacturer and retailer Imaginarium announced ambitious plans to expand operations in Mexico with an initial investment of US$1.6 million.  The company plans to open over 40 new retail locations in the country by 2013, in addition to potentially manufacturing in Mexico.
  • Retail: Despite underwhelming economic recovery, Mexico’s top retailer Wal-Mart de Mexico announced plans to invest over US$900 million this year.  The plans include the opening of 300 new locations across the company’s various retail formats and the remodeling of existing stores.
  • Mining: Canadian mining company First MajesticSilver Corp. opened a mineral processing plant in the northern state of Coahuila in late 2009.  The US$22 million plant will produce gold and silver. Read the rest of this entry »

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Aerospace supplier forum set for Tijuana

Feb 10

Posted by Tom in Manufacturing | No Comments

airplane_cartoonWhile many industries are struggling in the current down economy, aerospace continues to post robust results in Mexico.  Aerospace manufacturing and support services in the country have grown from a relatively minor industry in the 1990s to become one of the world’s leaders by 2010.  Particularly in recent years, as the momentum of clusters grew, the industry has exploded from about 60 companies in 2004 to over 200 currently.   Export sales are projected at US$3.4 billion for 2009, and are expected to exceed US$4 billion in 2010.

Tijuana, the center of one of Mexico’s aerospace clusters, will host a forum in March to bring together aircraft manufacturers and suppliers of the parts and components they need.  The event will feature a conference series as well as one-on-one matchmaking meetings.  Full information and registration can be found here:

http://www.sedeti.tijuana.gob.mx/aerospace_2010.asp

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Recent and upcoming investment

Jan 29

Posted by Tom in Investment, Manufacturing | No Comments

Reports on some recent and upcoming investment collected from the local business media:

  • Automotive:  Nissan and Volkswagen have announced plans to begin production on new models in Mexico this year, expanding current production.  Nissan will build a new compact model at its Aguascalientes plant, in addition to adding production of its new Micra model also at the Aguascalientes location.  Volkswagen will launch production of a mid-size sedan as well as new models of the Beetle and Jetta at its Puebla facility.
  • Electronics: Electronics industry leaders Samina-SCI and Hewlett Packard have announced plans to expand operations this year in Jalisco state, site of Mexico’s leading electronics cluster.  Sanmina projects investment of US$10 million in new machinery and equipment for manufacturing, and Hewlett Packard is investing US$5 million in infrastructure upgrades to expand staff at its Center of Excellence in Guadalajara.
  • Manufacturing: Danish cleaning equipment manufacturer Nilfisk opened a US$10 million facility in the central state of Queretaro.  The new plant will produce industrial cleaning machines.
  • Airports: Airport operator Grupo Aeroportuario del Pacifico announced planned investment of approximately US$42 million for this year in infrastructure upgrades.  Of the group’s 12 airports in Mexico, those at Guadalajara and Los Cabos are slated to receive the largest share of the upgrade investment. Read the rest of this entry »

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