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Recent and upcoming investment

Nov 1

Posted by Tom in Economy, Investment, Manufacturing | 3 Comments

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Information collected from media reports over the past month:

  • Automotive: German auto parts manufacturer Robert Bosch projected investment in its Mexico operations at US$78 million for 2011.  The resources are earmarked to support introduction of new technologies and preparation for the manufacture of new brake pad and battery products at the company’s 13 Mexico production locations. (El Informador, September 29, 2011)
  • Aerospace: Canadian aircraft maker Bombardier announced it will invest US$50 million to outfit its Queretaro plant to produce the aft fuselage for its new generation of long range business jets.  Mexico is now producing major composite structures for the company’s Learjet 85, such as fuselage lay-up and subsystem installation, wiring harness fabrication and installation, wing assembly and horizontal and vertical stabilizer assemblies. (The Montreal Gazette, October 25, 2011)
  • Recycling: Germany-based industrial services firm Ferrostaal AG announced plans to build a tire recycling plant in Mexico.  The facility will convert used vehicle tires into rubber granules for potential use in the manufacture of sports and recreation surfaces, soundproofing insulation or water hoses, among other uses.  The amount of investment in the new plant was not specified. (Ferrostaal, September 26, 2011)
  • Mining: Minera Autlán, subsidiary of Mexican mining group Grupo Ferrominero (GFM), is projecting investment in its Mexico mining operations of up to US$300 million over the next five years.  GFM’s energy subsidiary GFM Energía also plans to build three hydroelectric plants and one wind power generating plant in the coming years. (Reforma, October 6, 2011)
  • Steel: U.S.-based Steel Technologies announced plans to build a new steel processing facility in the northeastern state of Nuevo León.  The US$78 million plant is planned to provide steel cutting and surface treatment services for the region’s thriving automotive industry. (NAFTA Works, October 2011) Read the rest of this entry »

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Recent and upcoming investment in Mexico

Oct 6

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

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Information collected from media reports over the past month:

  • Retail: USA-based apparel marketer Warnaco revealed plans to open approximately 30 new stores in Mexico over the next two years.  Mexico sales were up by 39% through the first half of 2011 for the marketer of brands such as Calvin Klein and Speedo. (Reforma, August 25, 2011)
  • Logistics: Mexican cargo terminal operator Ferrovalle Intermodal announced a US$10 million expansion to its rail cargo handling facilities in Mexico City to be carried out this year.  The addition of 25 developed acres to the terminal will increase annual handling capacity to over 550,000 containers and speed last-mile deliveries. (Reforma, August 1, 2011)
  • Entertainment: Mexico City’s largest film studio, Estudios Churubusco, will expand with the construction of a new post-production building.  The investment of approximately US$20 million will include over 30,000 square feet of digital laboratory space, production warehousing and offices. (Reforma, September 6, 2011)
  • Infrastructure: Spanish infrastructure developer OHL Group, through its environmental subsidiary Inima, will build and operate a large-scale desalination plant in the northern Mexican state of Baja California.  The US$41 million facility is planned to produce 275 million cubic feet of potable water annually. (Reforma, September 7, 2011)
  • Energy: Spanish renewable energy developer Siliken will invest US$20 million initially to build and launch a 100 MW solar power plant in the northern state of Durango.  The project is planned to include a research and development center in addition to generating electricity. (Milenio, September 8, 2011)
  • Autoparts: Japanese industrial automation manufacturer Omron Corporation will invest US$30 million to build a new production plant in the central Mexican state of Guanajuato.   The facility will join recently announced new factories to be built by Honda and Mazda in Guanajuato’s growing automotive industry. (El Sol de Irapuato, August 27, 2011)
  • Biotechnology: Mexican agricultural biotechnology laboratory Biosustenta inaugurated a new plant to produce biofertilizers in the western state of Michoacán.  The US$1.3 million facility will use mycorrhizal fungi and other bacterias to produce the fertilizers.  Biosustenta currently exports product to the United States, Canada and Europe. (El Financiero, August 30, 2011) Read the rest of this entry »

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Recent and upcoming investment

Sep 5

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

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  • Agribusiness: Mexican agricultural services provider Phytosan inaugurated a new phytosanitary radiation plant in the northeastern state of San Luis Potosi following investment of US$12 million.  The facility, the only one of its kind in Mexico, will be used to treat fruits and vegetables for export to the United States.
  • Automotive: Japanese automaker Honda plans to invest US$800 million to build a new manufacturing plant in the central state of Guanajuato.  The new factory, planned to begin production by 2014, will produce energy-efficient subcompact autos. Honda currently operates an automobile factory in the western state of Jalisco.
  • Hospitality: U.S.-based hotelier La Quinta Inns & Suites announced plans to invest US$60 million to expand operations in Mexico over the next three years.  Projects are expected to include new hotels in business hubs such as Mexico City, Ciudad Juarez, Reynosa and San Luís Potosí, among other locations.
  • Automotive: Japanese automaker Honda will reactive investment plans at its manufacturing plant in the western state of Jalisco.  US$60 million in resources are earmarked to install equipment and technology needed to produce the company’s next model CR-V recreational vehicle.
  • Automotive: U.S. auto parts maker TRW Automotive announced it will invest US$50 million to install a new manufacturing plant in the central Mexican state of Queretaro.  The new facility reportedly will produce anti-lock braking systems to supply Volkswagen Brazil.
  • Mining: Mexican corporate group GFM has formed a joint venture between its heavy equipment subsidiary GFM Maquinaria and Singapore-based Singapore Technologies Kinetics to market mining equipment under the brand TRXBUILD.  The association plans to build a factory to produce equipment such as backhoes, tractors and off-road trucks in Mexico within five years through projected investment of US$20 million. Read the rest of this entry »

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New sustainability guidelines for plastics in Mexico City

Aug 5

Posted by Tom in Manufacturing, Uncategorized | 1 Comment

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Yuck

Yuck

On July 26, 2011, Mexico City’s Department of the Environment (SMADF) published new guidelines for the production and consumption of plastic products in the city.  The guidelines are scheduled to enter into effect in July 2012 in order to provide affected parties time to prepare for compliance.  The legislation’s lengthy official title could probably be reduced to “the plastic bag law,” as it serves largely as the next step in the ongoing process of trying to figure out how to reduce the volume and degradation time of all the plastic bags discarded daily in the vast metropolis.  The new guidelines were eagerly awaited — so eagerly, in fact, that members of three opposition parties in the city’s legislative assembly (ALDF) called for Environment Secretary Martha Delgado’s removal over the delay.

Any Mexico City resident can tell you that local grocery store baggers are generous to a fault with the plastic bags.  Most of these grocery bags go right in the trash once the purchases are put away at home, contributing to the more than 1,000 tons of plastic garbage the city produces daily.  With the municipal dumps overflowing, in 2009 the city government formed a working group of plastics producers, retailers, academics and other specialists to develop policy recommendations for reducing the volume of plastic bags flowing into the landfills.  But for the city fathers, the plastic bag problem has turned out to be rather like Borges’ aleph: the closer they look at it, the larger and more complex it becomes. Read the rest of this entry »

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Recent and upcoming investment

Aug 2

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

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  • Automotive: U.S. auto maker General Motors announced US$900 million in additional investment in Mexico in the coming years.  The resources are planned to expand production capabilities at various of the company’s plants in the country.
  • Manufacturing: British-Dutch consumer goods giant Unilever inaugurated a new manufacturing plant in the state of Morelos, near Mexico City.  The US$84 million facility will produce personal care products for the brands Axe, Dove and Rexona.
  • Tourism: Mexican hotel operator Grupo Posadas will invest US$140 million this year in new hotel projects in Mexico.  With tourism showing signs of recovery after the long economic downturn, Posadas’ Mexican investment is part of a total US$400 million projected by the company for new projects throughout Latin America.
  • Wind power: The Mexican subsidiary of U.S.-based Cannon Power Group revealed plans to invest US$2.5 billion to develop three new wind farms in Mexico.  The newly created Mexico Power group plans generating plants with combined capacity over 300 MW for the states of Baja California, Zacatecas and Quintana Roo.
  • Metals: Chilean metals processor Molymet will invest US$135 million to build a new production plant in Sonora, Mexico.  The new plant will add to the company’s existing molybdenum processing infrastructure in the state.
  • Food processing: Leading Mexican meat processor SuKarne will invest US$270 million to build a large production facility in the north eastern state of Nuevo Leon.  The project is planned to include livestock raising facilities, a feed plant, a federally certified slaughterhouse, a packing plant, a distribution center and a rail shipping link. Read the rest of this entry »

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Recent and upcoming investment

Jul 8

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

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  • Aerospace: Mexican aerospace manufacturer Hydra Technologies closed the first sale of its Ehecatl unmanned aircraft to a foreign customer at the Paris Air Show this month.  Hydra’s export order by a Canadian buyer, the value of which was not revealed, includes six aircraft, supporting equipment and services.  The contract represents the first export order of completed aircraft designed and built by a Mexican company, a major step forward for the country’s burgeoning aerospace industry.
  • Automotive: Japanese automaker Mazda at long last confirmed rumors that it will build a major new production facility in the central Mexican city of Salamanca, Guanajuato State.  The US$500 million facility, planned to produce next-generation engines and automobiles, is scheduled to open in 2013.
  • Trade: Chinese trade promotion agency Chinamex announced plans to build a Dragon Mart shopping center in Cancun, Mexico, via initial investment of US$150 million.  The complex, which will offer exhibition space, importation facilities, retail and wholesale outlets and restaurants, is intended to promote exports by small and medium sized Chinese companies.
  • Logistics: Mexican courier and logistics company Redpack inaugurated a new Operations Center in the western city of Guadalajara, Jalisco.  The US$6 million facility provides freight yards, warehousing, loading docks and office space to facilitate the company’s freight management for the western region.
  • Automotive: Platinum Tool Technologies, a Canadian manufacturer of molds for the automotive industry, formally inaugurated its plant in the northern state of Coahuila following US$1.75 million in investment. The facility provides high quality repairs, maintenance and engineering changes for molds and tooling.
  • Health care: A consortium of public and private institutions in Monterrey, Nuevo León, is projecting investment of US$400 million over the coming years to develop a health care cluster to be called “Monterrey City of Health”.  The project involves hospitals, laboratories, universities and research centers, and is intended to attract patients and health professionals from elsewhere in Mexico and around the world for advanced care and professional opportunities. Read the rest of this entry »

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Recent and upcoming investment

Jun 10

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

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

  • Mining: Canadian mining firm Chesapeake Gold Corp. will invest up to US$3.5 billion over the coming years in a large scale project to develop gold and silver extraction operations at its Metate site in Durango, northern Mexico.  The site is projected to become one of the world’s largest producers of the precious metals.
  • Automotive: German auto parts manufacturer Schaeffler will invest US$120 million to boost its operations in central Mexico.  The resources will be used to expand production infrastructure at the company’s plant in Irapuato, Guanajuato, which produces parts for automobile motors, transmissions and chassis.
  • Food processing: Mexican multinational baking giant Grupo Bimbo revealed plans for US$190 million worth of investment in Mexico this year.  Much of the resources are earmarked for upgrades to increase operational efficiency at the company’s 45 production plants in the country.
  • Logistics: Mexican courier company Estafeta will build four new operations centers in Mexico beginning this year, as part of the firm’s US$37.5 million expansion plans for 2011.  Estafeta reported its cargo levels have returned to 2008 levels, and the company is projecting 6% growth for the current year.
  • Automotive: Japanese tire giant Bridgestone will invest US$100 million this year to boost production capacity in Mexico.  The expanded output at Bridgestone plants in the cities of Monterrey and Cuernavaca is intended to meet demand in the United States.
  • Energy: Mexican solar panel manufacturer Solartec is investing US$5.4 million to construct and equip a new research center in the central state of Guanajuato.  The goal of the new facility will be to develop technological improvements that will halve the cost of photovoltaic solar electricity systems in Mexico by 2015. Read the rest of this entry »

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Recent and upcoming investment

May 6

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

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

  • Beverage: Mexico’s leading beer producer, Grupo Modelo, announced plans to invest US$400 million in 2011 in upgrades and expansion.  Resources are earmarked for improvements to the company’s production plant in Coahuila and to support market share gains in the U.S., Canadian and Australian markets.
  • Automotive: Italian tire maker Pirelli is initiating construction on a new US$210 million production facility in Mexico’s central state of Guanajuato.  The major plant will produce car and truck tires for the domestic Mexican market as well as for the rest of North America.
  • Food processing: Snack food and beverage giant PepsiCo inaugurated a new Financial Services Center in Mexico City.  The US$2.7 million facility, which will handle financial and administrative corporate operations for Central America and the Caribbean, is part of the company’s five-year plan to invest US$3 billion in the region in infrastructure and community relations.
  • Energy: Spanish energy conglomerate Gas Natural Fenosa revealed upcoming investment plans for Mexico including approximately US$60 million for natural gas distribution projects and US$50 million for electricity generation.  The company’s electricity generating capacity in Mexico represents 15% of the country’s independent production capacity, according to their own estimates. Read the rest of this entry »

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Recent and upcoming investment

Apr 5

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

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

  • Energy: U.S. energy giant General Electric inaugurated an advanced research center in the central Mexican state of Queretaro.  The US$20 million facility, located close to one of Mexico’s leading aerospace clusters, will contribute to the design of airplane turbines and power generation systems.
  • Retail: Mexico’s leading retailer, Wal-Mart de Mexico, revealed plans to invest US$1.2 billion in Mexico in 2011.  The record-setting amount will help cover the opening of a projected 365 new retail locations across the company’s formats.
  • Electronics: German electronics manufacturer Siemens is investing a combined US50 million in new assembly and testing infrastructure in the central state of Queretaro.  The facilities will produce equipment for high voltage systems as well as contribute to new product development.
  • Manufacturing: Construction is underway on the fifth Mexico plant of Dutch lighting products manufacturer Philips.  The new facility, located in the northeastern city of Monterrey, is planned to produce lighting equipment for residential, industrial, commercial and municipal applications.
  • Transport: Kansas City Southern railroad’s Mexico subsidiary announced plans to invest US$125 million in upgrades this year.  The 2011 resources, an increase over 2010, are earmarked for infrastructure development, railway network maintenance and the purchase of equipment and technology.
  • Retail: Leading Mexican grocery and general merchandise chain Soriana will invest US$300 million to open new stores in 2011, the company announced.  Planned store openings include aggressive expansion of the chain’s downscale “Soriana Express” format.
  • Food processing: Food and beverage giant Pepsico will invest US$40 million in Mexico over the next seven years to expand the cultivation of sunflower.  Oil from the plants will be used in the production of the company’s baked goods under the brands Sabritas, Gamesa and Quaker. Read the rest of this entry »

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Recent and upcoming investment

Feb 9

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

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

  • Aviation: Mexican airline VivaAerobus will invest US$30 million this year to acquire eight Boeing 737-300 aircraft.  The principally domestic carrier will use the new planes to add domestic and possibly international routes as well.  VivaAerobus has expanded steadily since entering the market in 2006.
  • Automotive: U.S. automaker General Motors announced plans to invest US$540 million to expand production at its existing plant at Toluca, just west of Mexico City.  The added infrastructure will accommodate production of two new models of energy efficient engines.  GM is Mexico’s largest auto maker.
  • Energy: Spanish renewable energy developer Iberdrola plans to invest US$400 million in its Mexico operations through the end of 2012.  Iberdrola recently purchased an existing wind farm in southern Mexico from fellow Spanish energy firm Gamesa, and is currently building another wind farm in the same region.
  • Logistics: Hutchison Port Holdings will undertake US$200 million worth of expansion and upgrades at the Port of Lazaro Cardenas on Mexico’s Pacific coast this year.  Planned works include dock construction, addition of berths and expansion of switching and storage yards to handle cargo containers.
  • Aviation: Mexican domestic air carrier Interjet announced plans to invest over US$90 million over the coming two years.  The resources are earmarked for tripling the capacity of the airline’s maintenance center and acquiring a substantial number of new aircraft.  Interjet reportedly will become the first Latin American airline to use Sukhoi jets, of Ruso-European manufacture, on its scheduled routes.
  • Automotive: U.S. automaker General Motors will invest US$300 million to upgrade and adapt its manufacturing plant in the northeastern state of San Luís Potosí.  Expansion of the plant is intended to accommodate production of a new compact model not currently being built in Mexico.
  • Manufacturing: U.S.-based furniture manufacturer Furniture Brands is investing US$20 million to outfit an existing maquiladora plant in the southeastern state of Yucatan to produce cut-and-sew kits for its U.S. upholstery operations.  The facility is expected to initiate production in mid-2011. Read the rest of this entry »

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