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 »
As 2009 draws to a close, Mexico, like many countries, will be happy to see the back of this year. Not only did 2009 see the worst economic decline in decades, but the steep recession was exacerbated by the outbreak of the H1N1 flu in April, which had a devastating effect on tourism and, to a lesser degree, business travel. Mexico’s deep economic integration with the United States is a key motor for the economy, and as a result, the contraction of demand for vehicles and other durable goods in the U.S.A. hit Mexico’s productive sector hard. The first two quarters of the year were practically catastrophic, as the precipitous dropoff in demand for vehicles led to layoffs and temporary plant closings in Mexico’s large vehicle manufacturing industry. Tourism, hit by the one-two punch of the slumping U.S. economy and then the flu outbreak in April, is showing tepid signs of recovery, but the sector is still expected to close the year approximately 20% below 2008 levels.
Mexico City yesterday was treated to the spectacle of a multitudinous protest march organized by the SME, the labor union associated with Luz y Fuerza del Centro (LFC), the city’s power utility. The state-owned company was dissolved October 11 by Presidential decree, citing its well documented unprofitability, deficient service and infrastructure, and rife corruption. Services formerly the responsibility of LFC will be taken over by the Federal Electricity Commission, the larger nationwide power monopoly.