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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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The new gas stations are here

dsc_0042

They’re heeere

One morning not long ago we were on our way to work at the Mexico Business Blog Global Campus when we strolled by the Pemex station and immediately did a cartoon double-take: The Pemex gas station was no longer Pemex!  It was still a gas station, yes, but the grungy, dinged up Pemex livery had now been replaced by sparkling new green and yellow Hidrosina logos and signs.  We could not help but to stop and gawk.  All our lives, all gas stations (or petrol stations, if you prefer) in Mexico were Pemex stations.  The Pemex station has long ranked among the most recognizable icons of Mexican popular culture – the place where you can fill up your tank, and go to the bathroom if you dare.  At that seminal moment, on the corner of Insurgentes and Av. Yucatán, a piece of our childhood died, and we were nearly brought to tears.  Those tears, however, would have been tears of joy, since the demise of the Pemex monopoly may be the most thrilling public policy to hit Mexico since, well, maybe since the energy industry was nationalized in 1938. 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:

  • Industrial parks: Mexican real estate developer Artha Capital plans investment of approximately US$113 million to build a new industrial park in the central state of Hidalgo. Manufacturers of products such as packaging, industrial kitchen equipment and building materials have already committed to space in the new site, the Hidalgo state government reported. (Inmobiliare, March 31, 2016)
  • Services: Mexican virtual office operator Iza Business Centers plans to open at least 10 new locations via investment of approximately US$11 million, the company reported. The new sites would bring the number of Iza office centers in Mexico to 36. (Reforma, March 28, 2016)
  • Railroad: Mexican railroad operator Ferrovalle plans investment of approximately US$17 million to construct a rail freight link to the new international airport currently under construction in Mexico City, the Communications and Transport Ministry (SCT) announced. The link will initially be used to deliver and remove construction materials, with the possibility of remaining in operation to provide freight services once the new airport opens. (El Financiero, March 23, 2016)
  • Industrial parks: Mexican commercial real estate developer Vynmsa inaugurated a new industrial park in the central state of Guanajuato, the state government reported. The US$10 million facility is reportedly equipped with a water treatment plant, LED lighting and other resource-conserving technologies. (Reforma, March 16, 2016)
  • Retail: U.S.-based grocery and general merchandise retailer Wal-Mart plans investment of approximately US$816 million in Mexico operations in the present year, the company reported. Resources are earmarked to support new store openings as well as major remodeling of existing stores and significant expansion and upgrade of the company’s on-line sales infrastructure, particularly for mobile applications. (Reforma, March 11, 2016) 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:

  • Airports: Mexican airport operator Grupo Aeroportuario del Centro Norte (OMA) is projecting investment of approximately US$68 million in its international airport at the northeastern industrial city of Monterrey over the next five years, the company reported. Projects are expected to include modernization of infrastructure, technology upgrades and improvements to cargo handling and security systems. (El Financiero, January 21, 2016)
  • Composites: French aerospace manufacturer Safran plans to establish a new materials production plant in the central state of Querétaro, the state government reported. The US$100 million facility is expected to produce composite materials for rotor blades. (El Financiero, January 21, 2016)
  • Retail: U.S. DIY retailer The Home Depot plans investment of approximately US$80 million in Mexico operations in 2016, the company reported. Expansion plans include six new stores in the country, where the company projects double-digit sales growth this year. (Reforma, January 20, 2016)
  • Electricity: Mexican industrial conglomerate Grupo México is projecting investment of US$1 billion to expand its electricity generation capacity following the opening of the Mexican electricity market this month. The group currently operates two combined cycle plants and a wind park, and is evaluating the addition of natural gas-powered combined cycle plants, as well as solar and wind generation facilities going forward. (Reforma, January 20, 2016)
  • Automotive: Germany-based industrial conglomerate Thyssenkrupp will build two new manufacturing plants in Mexico at an estimated cost of US$125 million, the company announced. One site in the southern state of Puebla is planned to produce steering systems for Volkswagen, and a second site in the central state of Guanajuato will produce camshafts. (Reforma, January 21, 2016) Read the rest of this entry »

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Airbnb growing like SCOBY in Mexico City

Pásele marchanta

Pásele marchanta

Disclaimer: The topic of this post is the growth of Airbnb in Mexico City and its impact on the demographics of the city’s central zone. The conclusions presented here are drawn not from rigorous data analysis but rather from wild speculation based on our trips back and forth to the market and grocery store in the Colonia Roma neighborhood.

We have been dragging our ratty plastic market bag back and forth to Medellín market in Mexico City’s Colonia Roma for weekly food shopping since as far back as we can remember, which due to youthful excess only goes back to about the 1990s at this point. Outside of the recent boom in apartment building construction, the landscape didn’t change much over time, especially in the market: a demo heavily weighted toward middle aged neighborhood Janes kvetching about the skyrocketing price of chilacayote and what have you. But about three years or so ago, we began to notice an uptick in the number of young women of foreign appearance, many with yellow ponytails, along our customary route and in the market itself. The uptick has now turned into a veritable tsunami of foreign visitors in their early 20s, to the point where it seems unusual to hear Spanish spoken at the Sumesa grocery store on Av. Yucatán. What happened? Read the rest of this entry »

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