Recent and upcoming investment in Mexico

Information collected from media reports over the past month:

  • Solar power: Mexican developers Gauss Energía inaugurated the 39 MW photovoltaic solar energy generation site Aura Solar in the northwestern state of Baja California Sur, built at a cost of approximately US$100 million.  Funded by a consortium that included Gauss, Portuguese energy developer Martifer, and government and multilateral agencies, the facility is considered to be the largest of its type in Latin America. (CNN Expansión, March 25, 2014)
  • Steel: Mexican corporate group Industrias CH is projecting investment of approximately US$805 million in Mexico operations this year.  Projects include construction of a new steel production plant for its Grupo Simec subsidiary to supply the automotive manufacturing industry, and a new plant in the northern state of Coahuila to produce large-diameter steel pipe for the petrochemical industry. (Reforma, March 25, 2014)
  • Hotels: Mexican hotel operator Grupo Posadas plans investment of approximately US$420 to expand its presence in Mexico through the end of 2015.  Projects include the opening of 36 new hotels under the Fiesta Inn and One brands. (Finamex Comentario de Cierre, March 26, 2014)
  • Wind power: Mexican cement giant CEMEX announced plans to build twin wind power plants in the northeastern state of Nuevo León.  The US$600 million project is projected to produce a combined capacity of 252 MW. (Reforma, March 21, 2014)
  • Retail: U.S. pet supplies retailer Petco and Mexican retail operator Grupo Gigante will invest US$50 million in a joint venture to open 50 Petco stores throughout Mexico over the next five years.  The partnership currently operates one store in Mexico and plans to close 2014 with five Mexico locations in operation. (El Financiero, March 12, 2014)
  • Coatings: U.S. coatings maker PPG Industries will invest approximately US$27 million to expand capacity at its production plant in the central state of Queretaro.  PPG currently supplies automotive paints to OEMs including Nissan and Honda in the region, the company reported. (Vanguardia Industrial, March 18, 2014)
  • Automotive: Korean bus manufacturer Daewoo plans investment of US$75 million to build a manufacturing plant in the central Mexican state of Hidalgo.  The passenger bus production operation is being developed as a joint venture with Mexican bus maker American Coach de México. (El Financiero, March 7, 2014)
  • Construction: Spanish construction and engineering multinational OHL is projecting investment of up to US$1.5 billion in Mexico public works projects over the next two years.  The company anticipates taking on major tender contracts to build highways in the coming months.  (El Financiero, March 7, 2014)
  • Chemicals: Mexican corporate group Grupo KUO plans investment of US$115 million across its chemicals, auto parts and food processing divisions.  Investment will be focused on product development and the acquisition of innovative products in these areas, the company reported.  (El Financiero, March 6, 2014)
  • Automotive: Mexican auto parts maker Katcon Global is building a new manufacturing plant in the northeastern state of Nuevo León.  The US$20 million site is expected to produce catalytic converters to supply domestic automotive OEMs as well as for export to the United States and Canada. (Reforma, March 7, 2014)
  • Food processing: Mexican canned foods leader Grupo Herdez inaugurated a new production plant in the central State of Mexico this month.  The US$42 million facility will produce mayonnaise under the McCormick brand. (Forbes México, March 5, 2014)
  • Construction: Mexican engineering and construction giant ICA projects investment of approximately US$265 million in 2014, the company reported.  ICA anticipates winning new government tenders in infrastructure such as highways and tunnels. (El Financiero, March 5, 2014)
  • Aviation: Airline partners Delta (U.S.) and Aeromexico (Mexico) inaugurated a new maintenance center at the Queretaro airport in central Mexico.  The US$45 million joint venture, reportedly the largest of its type in Latin America, will provide aviation maintenance services to  both airlines as well as to other clients. (Reforma, March 4, 2014)
  • Retail: Mexican department store chain Sanborns will boost investment this year to approximately US$190 million to expand its retail footprint.  Projects include store remodeling as well as new locations for the company’s Sears, Sanborns and iShop store lines. (El Universal, February 28, 2014)
  • Milling: Mexican milling giant Gruma is planning to build three new production plants in 2014 at a cost of approximately US$160 million.  The new flour milling sites are set for construction in Mexico and Russia and Malaysia as well. (El Financiero, February 28, 2014)
  • Beverage: Mexican corporate group FEMSA is projecting investment of approximately US$1.35 billion across its divisions in 2014.  The resources will support expansion and upgrades for the company’s Coca Cola bottling operations, its segment-leading Oxxo convenience stores and logistics and refrigeration infrastructure. (El Financiero, February 28, 2014)
  • Automotive: Japanese auto maker Toyota will invest US$150 million to set up production operations within an existing Mazda plant in the central state of Guanajuato.  Resources will be used for acquiring production machinery and equipment as well as to expand the plant’s manufacturing capacity. (El Financiero, February 26, 2014)
  • Automotive: German automotive components manufacturer Continental Automotive inaugurated a new innovation and design center in the western state of Jalisco.  The US$22 million facility is planned to develop technologies related to safety and comfort, connectivity, entertainment and motor and brake control within automobiles. (El Economista, February 28, 2014)

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