Tag Archives: Plastics

Supply chain woes vex Mexican chemical industry

chemistryDespite losing ground in its share of the national GDP over the last 20 years, Mexico’s chemical industry continues to produce important products and inputs for a range of other manufacturing sectors in the country.  The industry has hit some bumps in the road of late, though, which will have to be dealt with if it is to establish a solid path to growth.  The combined annual value of production of chemicals, rubber and plastics dropped by 16% in 2015 over the previous year, according to INEGI data, following a smaller decline the previous year. The sharp drop in chemicals production in 2015 underscores one of the most significant challenges currently facing the industry:  Interruptions in the domestic supply of critical raw materials from Pemex.  Continue reading Supply chain woes vex Mexican chemical industry

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) Continue reading Recent and upcoming investment in Mexico

Recent and upcoming investment in Mexico

Information collected from media reports over the past month:

  • Telecommunications: Mexican wireless services provider Maxcomm Telecomunicaciones projects investment of approximately US$67 million in 2015, the company reported. Projects are expected to include modernization of the company’s wireless technologies across service offerings. (El Financiero, October 28, 2014)
  • Food processing: U.S. cereal and snack maker Kellogg’s plans investment of approximately US$52 million in Mexico over the next three years, the company reported. Resources will focus on the company’s major production plant in the central state of Querétaro, to upgrade areas such as sustainability, productivity, and innovation and target the healthy-lifestyle market niche. (El Financiero, October 28, 2014)
  • Financial services: Canadian bank Scotiabank announced plans to invest approximately US$266 million in Mexico operations over the next five years. Anticipated projects include expanding the number of cash machines and retail branches in the Mexican market. (Finamex Casa de Bolsa Comentario de Apertura, October 29, 2014)
  • Information technology: Chinese information technology equipment and services giant Huawei plans investment of approximately US$1.5 billion in the central state of Querétaro, the Mexican federal government announced. Projects are expected to include a network operations center, research and development and training facilities. (El Economista, October 28, 2014)
  • Automotive: Mexican high-performance boutique auto maker Vuhl will establish its initial manufacturing plant in the central state of Querétaro, the Querétaro state government reported. The US$10 million facility is expected to produce chassis, suspensions and do the final assembly of the company’s Vuhl 05 model. (Querétaro State Government, October 26, 2014) Continue reading Recent and upcoming investment in Mexico