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Mexican economy not 100% dead just yet

Mexico continues to struggle to contain the spread of COVID-19, with over 400,000 accumulated cases and 46,000 deaths.  Mexico City remains at orange, the second highest level of alert under the national traffic light system for establishing economic and mobility restrictions, and the rest of the country’s 32 states are at either red, the highest alert level, or orange.  The level of business activity remains substantially reduced with respect to pre-COVID levels and no significant improvement is foreseeable in the near term. Continue reading Mexican economy not 100% dead just yet

Recent and upcoming investment in Mexico

Information collected from media reports over the last month:

  • Tourism: The Tourism Ministry of the northwestern state of Baja California announced a US$1.5 billion infrastructure development plan to support tourism. Projects include a hotel golf course and marina complex at San Felipe and a new airport for the Pacific coast city of Ensenada. (Reforma, January 28, 2020)
  • Pharmaceutical: U.S. drug maker Pfizer plans approximately US$20 million in investment to support Mexico operations this year, the company reported. Projects include ongoing renovation of the company’s Toluca manufacturing plant, development of clinical research protocols, educational programs and social responsibility projects. (El Financiero, January 27, 2020)
  • Ports: The Mexican government announced infrastructure and logistics firms Caxxor (UK) and Acxesa (Mexico) will invest approximately US$287 million to rehabilitate and expand the Puerto Chiapas port on the Pacific coast of the southern state of Chiapas. Acxesa plans to make further investments to begin operating maritime freight lines from the port to China via Guayaquil, Ecuador. (El Sol de México, January 25, 2020)
  • Logistics: U.S. logistics operator FedEx Express inaugurated an expansion to its fiscal warehousing complex at the international airport in the central city of Toluca, the company reported. The US$24.6 million expansion will allow the company to reduce processing time for both imports and exports at the site. (El Financiero, January 24, 2020)
  • Food processing: Swiss processed foods giant Nestlé reported plans to invest approximately US$700 million to modernize the 17 plants the company operates in Mexico. Projects include US$200 million for an environmentally cutting-edge coffee processing facility in Veracruz as well as latest technologies for boosting productivity, improving operational efficiency, expanding production cpacity and guaranteeing responsible natural resource management. (El Financiero, January 23, 2020) Continue reading Recent and upcoming investment in Mexico

Recent and upcoming investment in Mexico

Information collected from media reports over the last month:

  • Biogas: Mexican waste management firm Promotora Ambiental (PASA) inaugurated a biogas-powered electricity generation plant in the central state of Guanajuato, the state government reported. The site will draw on biomass from the municipal waste disposal site of the state capital of León. (El Heraldo de Léon, October 25, 2019)
  • Coffee: Swiss processed foods giant Nestlé announced it will expand its new coffee processing plant currently under construction in the eastern Gulf state of Veracruz, via additional investment of approximately US$46 million. The company plans to acquire more equipment than originally projected for the processing of up to 20,000 tons of green coffee beans per year. (Reforma, October 23, 2019)
  • Tourism: Mexican adventure park operator Grupo Xcaret reported plans to invest approximately US$400 million through 2027 in the country’s southeastern coastal tourism region. Projects include sustainably constructed hotels and a new ecologically themed amusement park. (El Financiero, October 21, 2019)
  • Food processing: Processed foods producer Qualtia Lacteos, subsidiary of Mexican diversified industrial conglomerate Grupo Xignux, will establish a new cheese factory in the central state of Querétaro at an approximate cost of US$15 million, the company reported. The 30,000 square foot plant is projected to enter into operation in 2020. (Reforma, October 17, 2019)
  • Cement: Swiss building materials multinational Holcim announced it will construct a new production plant in the southeastern state of Yucatan. The US$40 million site is planned to produce 650,000 tons of cement annually. (El Financiero, October 18, 2019) Continue reading Recent and upcoming investment in Mexico