Archive for category Manufacturing

Big Mexican companies keep investing abroad

New market development

New market development

Despite some adverse conditions facing Mexico at the moment (cough Trump cough), the Mexican government has kept up its steady promotion of the country as a destination for foreign direct investment.  A couple of high-profile investments in the automotive industry appear to have been waylaid by threats or uncertainty over the future of NAFTA, but overall large foreign companies with long-term strategies for the Americas continue to establish new Mexico operations or expand existing ones.  Within this context, we once again took a look at the less-heralded flip side of Mexico FDI – investment by Mexican companies in other countries. Read the rest of this entry »

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Recent and upcoming investment in Mexico

Information collected from media reports over the past month:

  • Energy: Spanish energy infrastructure developer Iberdrola announced it has been awarded a contract to construct and operate a combined cycle electricity generation plant in the northwestern state of Sinaloa. The US$400 million plant is projected to have generation capacity of 766 MW. (El Financiero, March 22, 2017)
  • Food processing: Swiss processed foods giant Nestlé plans to invest approximately US$28 million to achieve water savings at its coffee processing plant in the central city of Toluca. Process modifications will include reduction of steam use, improved condensation recovery and the re-use of pre-treated water in industrial services, the company reported. (El Financiero, March 22, 2017)
  • Entertainment: Mexican corporate group Diniz reported it will add six new family entertainment centers under its Recórcholis brand in Mexico this year at a cost of approximately US$12 million. The centers include children’s activities such as games, rides, bowling, ice skating, go karts, miniature golf and others. (Reforma, March 22, 2017)
  • Logistics: U.S. transport and storage company Bulkmatic, through its Mexico subsidiary Bulkmatic de México, plans to construct a fuel storage terminal in the central state of Hidalgo, the company reported. The US$50 million project will include 10 tanks for gasoline, diesel and biodiesel. (Reforma, March 22, 2017)
  • Retail: Mexican upscale department store operator Liverpool announced it will open 11 new stores in the country during the current year. A planned US$300 million in investment will support new retail locations principally under the company’s Fábricas de Francia brand, in addition to maintenance operations for existing stores. (El Financiero, March 16, 2017) Read the rest of this entry »

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Recent and upcoming investment in Mexico

Information collected from media reports over the past month:

  • Retail: Mexican corporate group FEMSA will invest approximately US$1.3 billion in Mexico this year across its retailing, beverage bottling and gas station operations, the company reported. Key projects include 50 new gas station-convenience store combination locations under the company’s Oxxo brand. (Dinero en Imagen, February 28, 2017)
  • Logistics: DHL Express, courier subsidiary of German logistics multinational DHL, reported plans to invest approximately US$200 million to expand operations in Mexico. Projects include upgrades to the company’s air freight terminals in the Monterrey, Guadalajara and Querétaro airports and the opening of new service centers, among others. (El Financiero, February 23, 2017)
  • Dairy: Mexican dairy giant Grupo Lala plans investment of approximately US$175 million to expand operations, the company reported. Lala specified only that resources will support “innovation and productivity.” (Dinero en Imagen, February 21, 2017)
  • Mining: Canadian mining company Goldcorp reported plans to invest US$300 million in its Peñasquito mine in the northern state of Zacatecas. The company is seeking to increase its gold-producing holdings by 20%. (El Financiero, February 20, 2017)
  • Industry: Mexican corporate group Grupo KUO reported plans to invest approximately US$170 million in Mexico operations during the present year. Resources will support the group’s activities in areas such as pork production, automotive transmission manufacturing, rubber and auto parts. (El Financiero, February 17, 2017)
  • Electronics: German electronics manufacturing conglomerate Siemens will invest approximately US$200 million in Mexico over the next 10 years, the company reported. Areas of investment will include technology innovation, industrial digitalization and modernization of energy management. (Forbes, February 15, 2017) Read the rest of this entry »

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Recent and upcoming investment in Mexico

Information collected from media reports over the past month:

  • Glass: Mexican glass manufacturer Grupo Millet reported plans to construct a new production plant in the southeastern state of Yucatan. The US$70 million site will produce architectural glass for export to the United States and elsewhere in Latin America. (El Financiero, January 25, 2017)
  • Casual dining: Mexico’s leading casual dining franchise operator Alsea plans investment of approximately US$190 million to open a record number of new locations across its portfolio in 2017, the company reported. Plans include some 250 new stores, in formats such as Starbucks, Burger King, Domino’s Pizza, Chili’s and others. (Reforma, January 24, 2017)
  • Technology: U.S.-based Deloitte Consulting inaugurated a regional service delivery center in the central Mexican state of Querétaro. The US$10 million center is planned to provide development, testing, support and maintenance services for the firm’s application maintenance, enterprise resource planning (ERP) and IT consulting clients throughout the Americas. (El Economista, January 25, 2017)
  • Natural gas: Mexican fuel distribution company Grupo Energéticos (Energex) plans to build four service stations to offer vehicular natural gas in the country this year, the company reported. The US$4 million project will provide compressed natural gas for vehicular use as an alternative to conventional gasoline, which has risen sharply in price during the current year. (Reforma, January 23, 2017)
  • Energy: Spanish energy infrastructure developer Iberdrola will invest approximately US$600 million to construct an electricity generation plant in the northeastern state of Nuevo León, the company reported. The combined cycle plant is planned to be powered by natural gas. (Mundo Ejecutivo, January 19, 2017) Read the rest of this entry »

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Recent and upcoming investment in Mexico

Information collected from media reports over the past month:

  • Gasoline: Mexico’s Energy Regulatory Commission estimates removal of price controls on gasoline and diesel in 2017 will stimulate up to US$16 billion in new investment. Major projects are expected in new service stations, transport pipelines and storage infrastructure. (Reforma, December 22, 2016)
  • Recycling: The Mexico City municipal government published a tender for the first of two plants planned to use solid waste from the city’s landfills as fuel to produce electricity. Officials estimated approximately US$3.5 billion in investment will be required for the total project, which is intended to provide electricity for the local Metro public transport system. (El Universal, December 13, 2016)
  • Rail: Mexican mining conglomerate and rail transport operator Grupo Mexico plans investment of approximately US$431 to support the operations of its rail transport subsidiaries Ferromex, Ferrosur and Intermodal, the company reported. Upgrades include acquisition of new locomotives, replacement of rail and ties and other infrastructure improvements. (Outlet Minero, December 14, 2016)
  • Retail: Japanese clothing and home products retailer Miniso is preparing to open its first store in Mexico before the close of 2016 via investment of US$3 million, the company’s Mexico franchise operator reported. The franchisee projects opening up to 100 Miniso stores in Mexico over the next five years. (Reforma, December 13, 2016)
  • Metal forming: SPM Auto Parts, a joint venture between Japan’s Mizuno Tekkosho and Korea’s Sunil Dyfas, inaugurated a new production facility in the northeastern state of Nuevo León. The US$16 million plant will produce precision screws and bolts for regional automotive OEMs such as KIA, Nissan, Honda, General Motors and Toyota. (Notimex, December 7, 2016)
  • Financial services: Spanish financial services multinational Grupo Financiero Santander plans investment of approximately US$750 million in Mexico operations over the next three years, the company announced.  Resources will support upgrading of software and systems, retail banking branches and introduction of new products, among other areas.  (Expansión, December 8, 2016)
  • Food processing: Mexican industrial miller and tortilla producer Gruma announced plans to build a new production facility in the southeastern state of Puebla. The US$50 million site is planned to produce tortillas and tostadas under the Mission brand. (Reforma, December 1, 2016)
  • Automotive: Korean auto parts maker Hanwha Advanced Materials inaugurated a new production plant in the northeastern state of Nuevo León, the state government reported. The US$20 million site will produce components for a new Kia Motors OEM manufacturing facility in the area.  (Milenio, December 1, 2016)

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