Posts Tagged Wind power

Recent and upcoming investment in Mexico

Information collected from media reports over the past month:

  • Wind power: Japanese investment group Mitsui & Co. announced plans to take a 50% ownership stake in the Mexican wind power generation facility Bii Stinu, currently under construction by a subsidiary of French energy developer EDF Energies Nouvelles.  Mitsui specified the total cost of the project at approximately US$400 million.  (Mitsui & Co., January 9, 2013)
  • Construction: Mexican industrial real estate developer Vesta plans to invest approximately US$90 million to construct industrial buildings for Nissan at the Japanese auto maker’s new production site in the western state of Aguascalientes, the company reported.  (Mexican Business Web, January 14, 2013)
  • Retail: Mexican grocery and general merchandise retailer Grupo Chedraui plans investment of approximately US$185 million in Mexico operations this year, the company revealed.  Projects include the opening of 20 new stores in the country. (Mexican Business Web, January 14, 2013)
  • Health care: Mexican private hospital operator Grupo Star Médica opened a new hospital in the central state of Queretaro, built at a cost of approximately US$47 million.  The facility includes state-of-the-art technology in areas such as medical imaging and obstetrics and gynecology, among others.  Star Médica currently has three other new hospitals under construction. (El Financiero, January 14, 2013)
  • Automotive: German auto maker Volkswagen inaugurated a new production plant in the central Mexican state of Guanajuato following investment of US$500 million.  The plant becomes the company’s 100th factory worldwide and is projected to produce 330,000 motors annually. (El Economista, January 16, 2013) Read the rest of this entry »

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Mexico dips toe in marine energy waters

Wave powerMexico has lagged behind Brazil in the development of renewable energy resources, but progress is being made in a number of areas.  From updated legislation allowing net metering to a veritable boom in wind farms, the country is definitely moving forward despite a public policy environment that is not always favorable.  Here at Mexico Business Blog we’ve touched on various renewable energy topics in recent years, from solar and wind to methane recovery, and we’ve researched liquid bio-fuels and biomass fuels as well.  Along the way, we realized we haven’t heard much about marine energy development in Mexico, despite the country’s nearly 5,800 miles of coastline.  So we decided to take a dip into the murky waters of publicly available information, and here’s what we found: 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:

  • Retail: Mexico’s leading retailer Walmart de Mexico announced it will invest approximately US$1.5 billion in its Mexico and Central American operations this year.  The record investment will be channeled into the opening of over 400 new stores, in addition to technology acquisition and efficiency programs. (El Financiero, February 22, 2012)
  • Water treatment: Mexican construction company Grupo Carso announced it will invest approximately US$1 billion in the construction of a major water treatment plant at Atotonilco in the central state of Hidalgo.  The plant is planned to recycle 60% of waste water in the Valley of Mexico, in which Mexico City is located. (El Financiero, March 7, 2012)
  • Automotive: Japanese autoparts maker Yorozu plans to invest approximately US$70 million to build a new manufacturing plant in the central state of Guanajuato.  The new facility, the company’s second in Mexico, will produce shock absorbers to meet demand from the country’s surging vehicle production. (Businessweek, February 13, 2012)
  • Food processing: Italian confectioner Ferrero will invest US$190 million to build a new production plant in the central state of Guanajuato.  The plant will produce chocolates under the Ferrero Rocher brand in addition to other sweets. (El Economista, February 22, 2012)
  • Retail: U.S.-based supermarket and general merchandise retailer H-E-B plans to add five new stores in Mexico in 2012, raising the number its sales locations in the country to 44.  H-E-B Mexico sales surpassed US$1 billion in 2011.  (NAFTA Works, March, 2012)
  • Energy: The North American Development Bank (NADB) agreed to provide financing for the construction of a wind farm to produce electricity in the northern state of Tamaulipas.  The generation plant, to be developed by Compañía Eólica de Tamaulipas, S.A. de C.V. (CETSA), will provide energy for purchase by leading grocery and general merchandise retailer Soriana. (NADB, February 13, 2012) Read the rest of this entry »

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Industries that had a good year in 2011

IndustryAs another year comes to a close we can’t help feeling some frustration that the economy just doesn’t seem to want to take off, both around the world and here in Mexico.  Between the Eurozone debt crisis and stubborn unemployment in the United States, among other topics, we’ve got plenty to keep us fretting for the foreseeable future.  But since the holidays are upon us and presumably it’s a time for good cheer, here are some of the talking points we’ll have in our pocket as we hit the punch bowl hard in the coming days:

GDP growth: Banco de México and Banamex are projecting final 2011 GDP growth in the range of 3.8%.  OK we’re not talking China numbers here but compared to 2009’s -6.1 we’ll take it.

Hot industries: While most sectors of the economy are merely shuffling along, certain industries are getting, or remaining, seriously hot.  The big star this past year was automotive manufacturing, which after suffering a rough patch during the recession has roared back, with production and exports well up over 2010 and a number of significant new investments announced.  Aerospace manufacturing also continued its unchecked expansion, with new international investments announced and exports projected to post double-digit growth for the year.  Outside of manufacturing, mining surged this year, led by demand for gold, silver, copper and industrial minerals, and is on track to exceed 2010’s record setting production value for the year. Read the rest of this entry »

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AMDEE posts dazibao

Down with the Gang of Four?

Down with the Gang of Four?

Amidst the wailing, gnashing of teeth, rending of garments and general raging rumpus that gushed forth in the wake of the liquidation of Luz y Fuerza del Centro (LyFC) last week, one interesting detail escaped us, until now: a rather modest paid advertisement in Reforma taken out by the Mexican Wind Energy Association (AMDEE).  The ad states simply, “Muchas Felicidades Señor Presidente.”  Now, unless President Calderón and his wife were celebrating their anniversary last week, we presume the congratulations refer to the dissolution of the electric company.  Seems straightforward enough, but the more we think about it, the little ad reads like a Mao-era Chinese wall poster.  The congratulations without any mention of the topic (birthday? Tae Kwon Do medal?) is uncharacteristically coy for this form of communication, even though the message is presumably implicit under the circumstances.  Mexico’s major wind farms, located far from the capital, certainly don’t compete with LyFC in power generation, and LyFC bought most of its power from the CFE anyway.  If the ad appeared only in Reforma (we don’t know if it appeared elsewhere), was it intended as an intimation of fellow-travelership aimed at the paper’s pro-business, pro-private sector readership?  But word, of course, gets around in this talky town.  If the ad appeared in the Pravda-like La Jornada, it would be perceived as a deliberate poke in the eye by that paper’s readership.  One would think the AMDEE would take pains to keep its image associated with more progre-friendly concepts such as “green,” “eco,” “carbon-neutral,” and whatnot, so why stick their necks out when danders are up?  We found no mention of the LyFC topic on the organization’s web site.  Considering that AMDEE’s membership includes numerous multi-national energy companies, we can only surmise that the cryptic ad is a winking affirmation of AMDEE members’ support for eventual privatization and opening up of Mexico’s energy sector in general.  But then again, to borrow a phrase from Ed Grimley, it’s difficult to say.

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