Recent and upcoming investment in Mexico

Information collected from media reports over the past month:

  • Retail: Mexican department store operator Palacio de Hierro announced it plans to establish a new ‘mega-store’ in Mexico City’s upscale Polanco district.  The US$300 million development is slated to become the chain’s flagship location. (El Financiero, May 13, 2014)
  • Manufacturing: Mexican industrial park operator Parque Industrial Amistad Aeropuerto plans investment of approximately US$15 million in its facility at Ramos Arizpe, in the northern state of Coahuila, to accommodate U.S. cooling equipment manufacturer Nordyne.  The new manufacturing infrastructure will be used to produce air conditioning equipment. (Mexican Business Web, May 26, 2014)
  • Confectionery: U.S. candy giant Mars, Inc. initiated construction of a new production plant in the central state of Guanajuato.  The US$160 million facility is planned to produce Snickers and Milky Way bars to meet domestic demand and for export to Central and South America.  (Reforma, May 29, 2014)
  • Mining: Mexican mine operator Minera Autlán plans investment of US$300 million over the next five years, the company reported.  Projects targeted for investment include energy generation, exploration, industrial security and environmental protection. (Reforma, May 21, 2014)
  • Airports: Mexican airport operator Grupo Aeroportuario del Pacífico (GAP) will invest US$13.8 million in upgrades at the Tijuana airport, on the northern border with California.  The new additions to the site will include a bridge within the terminal connecting the Mexico side of the airport with arrival facilities on the U.S. side of the border. (Reforma, May 21, 2014)
  • Steel: Brazilian steel maker Gerdau Corsa is completing construction on a new production plant in the central state of Hidalgo.  The US$600 million site is projected to produce one million tons of semi-finished products and 700,000 tons of structural shapes annually when completed. (Reforma, May 16, 2014)
  • Energy: IEnova, the Mexican subsidiary of U.S. natural gas utility Sempra Energy, plans investment of US$1.2 billion in energy industry projects in Mexico.  The projects, some of which will be carried out in partnerships with Petroleos Mexicanos and British Petroleum, include gas and ethane pipelines as well as a wind energy generation park. (Reforma, May 19, 2014)
  • Telecommunications: Virgin Mobile Latinoamérica, subsidiary of U.K.-based Virgin Group, plans investment of US$41.5 million to enter the Mexican and Brazilian markets over the next two years, the company reported.  Virgin seeks to take advantage of recent reforms in Mexican telecommunications law designed to increase competition in the sector long dominated by a single operator. (El Economista, May 14, 2014)
  • Manufacturing: Japanese motor producer Shinano Kenshi Group (SKG) plans to open a new manufacturing plant in the central state of Guanajuato in 2015.  The site, which will be the company’s first of its kind outside of Asia, will make precision electric motors for automotive, medical and other applications.  The amount of investment was not specified. (Reforma, May 13, 2014)
  • Health: Mexican sports club operator Grupo Sports World plans to open seven new locations this year, taking the chain’s total number of health clubs to 44.  The fast-growing upscale gym operator did not specify the amount of projected investment. (El Financiero, May 13, 2014)
  • Hotels: Mexico hotel operator Grupo Real Turismo is lining up US$115 million in new developments, the company reported.  Projects include new business class hotels in the cities of Guadalajara, Cancun and Villahermosa. (El Financiero, May 13, 2014)
  • Retail: Mexican grocery and general merchandise retailer Soriana is building a new distribution center in the northeastern state of Nuevo León.  The US$23 million facility is intended to improve distribution of fresh products such as fruits and vegetables to the chain’s stores in the region. (Periódico AM, May 12, 2014)
  • Aerospace: U.S. aerospace components maker UTC Aerospace Systems will invest US$300 million to expand operations at its affiliate location in the northwestern city of Mexicali, the Baja California state government announced.  The site will produce weight-reducing acoustic panels from composite materials for aircraft.  (Reforma, May 9, 2014)
  • Steel: Mexican steel maker Altos Hornos de Mexico (AHMSA) plans investment of US$370 million this year in Mexico operations.  Projects to receive funds include completion of the company’s new El Fenix steel plant in the northern state of Coahuila, acquisition of new equipment and the opening of new mines. (Reforma, May 7, 2014)
  • Automotive: Japanese multinational corporate group Hitachi plans US$90 million in investment to build a manufacturing plant in the central State of Mexico.  The new site will produce cast metal parts for the region’s automotive industry. (Reforma, May 6, 2014)
  • Airports: Mexican airport operator Grupo Aeroportuario del Pacífico plans investment of approximately US$380 million in its 12 airports between 2015 and 2019, the company reported.  Projects include unifying the two terminals of the Guadalajara airport as well as runway repaving, construction of access roads, acquisition of passenger transport vehicles and other upgrades at various airports. (Reforma, April 30, 2014)
  • Hotels: Mexican hotel and resort operator Grupo Presidente plans to spend approximately US$50 million on remodeling of its properties through 2015, the company reported.  In addition to upgrades for its hotels in Mexico City, Guadalajara, Cancun and Los Cabos, the company plans to begin operating long-term stay hotels under the brand Hyatt House. (El Financiero, April 30, 2014)
  • Retail: Mexican grocery and general merchandise retailer Casa Ley plans to open 15 to 20 new sales locations this year, the company reported, without specifying the amount of investment.  The majority of the new locations will be in the chain’s smaller scale express grocery store format. (El Fginanciero, April 29, 2014)
  • Automotive: German automotive component maker Schaeffler will invest approximately US$100 million to establish a second production plant for its LuK brand in the southern state of Puebla.  The new facility will produce torque converters for export to the company’s production sites in the United States and Japan. (NAFTA Works, April 2014)

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