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Recent and upcoming investment in Mexico

Information collected from media reports over the last month:

COVID-19

The epidemiological conditions regarding the COVID-19 pandemic in Mexico continue to improve slowly but steadily.  According to the most recent version of the national traffic light system used to indicate the level of alert and restrictions on business activities and mobility, six Mexican states are now at green, or no restrictions, while 20 are at yellow or low restriction.  Mexico City remains at orange, denoting a relatively high rate of alert, however the city appears to be operating fairly normally albeit with widespread mask use and social distancing.  Approximately 10% of Mexicans have received at least one vaccination shot, compared with over 40% in the United States. Continue reading Recent and upcoming investment in Mexico

AMLO to lithium: My precious!

Here in Mexico the big midterm elections coming up in June are absorbing a lot of attention right now, but before we talk about that we just wanted to make some comments on a topic currently flying a bit under the radar: Lithium mines.  The issue is, prior administrations granted a number of concessions to foreign private companies for the exploration and eventual production of lithium in Mexico, and a small number of these companies have been out in the desert scratching around in hopes of finding a viable mining site.  Two things make this more important to Mexico now than it may have seemed a few years ago: First, a massive lithium deposit in the northern state of Sonora is being developed by foreign capital with plans to begin commercial production within two years; and second, Mexico is currently governed by a president who views the private sector — and particularly foreign companies — to be exploiters, thieves and enemies of the nation.   Continue reading AMLO to lithium: My precious!

Recent and upcoming investment in Mexico

Information collected from media reports over the last month:

  • Automotive: German auto parts maker ZF Group announced it will undertake a US$86 million expansion to its manufacturing plant in the central state of Querétaro. The increase in production capacity will allow the company to boost output of steering systems at the site. (Somos Industria, March 31, 2021)
  • Logistics: Mexican logistics operator Henco Global inaugurated a new 540,000 sq. ft. warehousing and distribution facility in the central State of Mexico, the company reported. Total investment was not specified for the site, which was reportedly designed to support Mexico’s fast-growing demand for e-commerce shipping. (T21, March 25, 2021)
  • Railroad: U.S.-owned rail freight operator Kansas City Southern de México (KCSM) is projecting investment of approximately US$118 million this year in upgrades for Mexico operations. Areas targeted for improvement or expansion include infrastructure such as a new clearing yard, cranes, signaling equipment and sidetrack, as well as rolling stock and operational systems technology. (T21, March 26, 2021)
  • Metal forming: U.S. sheet metal manufacturer Tenere announced plans to move its Mexico operations into a larger 180,000 square foot plant in the northeastern state of Nuevo León. Total investment was not specified for the expansion, which is projected to allow the company to double its output of sheet metal enclosures, racks, chassis and cabinets for clients in the cloud infrastructure, network architecture, fiber optics and renewable energy industries. (Mexico Industry, February 2021)
  • Electric vehicles: Swedish car and truck maker Volvo announced plans to invest in 300 charging stations for electric vehicles in Mexico, in support of the company’s plan to transition to all electric or hybrid vehicles by 2030. The amount of investment was not specified for the project, which will be carried out in partnership with Italian-owned electricity technology company Enel X. (Cluster Industrial, March 24, 2021) Continue reading Recent and upcoming investment in Mexico