Recent and upcoming investment in Mexico

Information collected from media reports over the last month:

  • Manufacturing: Chinese-owned tool maker Milwaukee Tool announced it will establish a new production plant in the northern state of Coahuila via investment of US$86 million. The company manufactures power tools such as drills, saws, grinders and related products. (El Financiero, August 29, 2019)
  • Energy: Spanish energy multinational Iberdrola will construct two new electricity generation facilities at a combined cost of US$750 million, the company reported. The combined cycle plant in the Gulf coast state of Veracruz and the wind park in the eastern state of Puebla are projected to provide capacity of 1,700 MW. (Reforma, August 22, 2019)
  • Fertilizer: Swiss petrochemical products multinational Proman will move forward to construct an ammonia fertilizer production plant in the northwest state of Sinaloa, the company reported. The US$1.25 billion complex is projected to produce 800,000 tons of agricultural fertilizer annually beginning in 2022, for both the domestic and export markets. (El Financiero, August 14, 2019)
  • Personal care: Brazilian cosmetics multinational Natura constructed a new distribution center in the central State of Mexico at a cost of US$10 million, the company reported. The site is planned to have capacity to process 1,300 orders per hour. (El Financiero, August 15, 2019)
  • Logistics: German logistics multinational DHL announced it will invest US$300 million in Mexico though 2024 to handle booming e-commerce shipping demand. Resources will support operational areas such as retail services, security, technology systems, equipment and general package handling capacity. (El Financiero, August 14, 2019) Continue reading Recent and upcoming investment in Mexico

Recent and upcoming investment in Mexico

Information collected from media reports over the last month:

  • Oil rigs: Mexican petroleum marine services provider Marinsa invested approximately US$26 million in two offshore oil drilling platforms in the Gulf of Mexico, the company reported. Marinsa is providing rehabilitation and installation services to national oil company Petróleos Mexicanos (Pemex) for the development of 20 offshore oil fields.  (Reforma, July 31, 2019)
  • Electronics: French automation technology multinational Schneider Electric inaugurated a new “intelligent” production plant in the northeastern state of Nuevo León, the company reported. The US$37 million facility is planned to produce devices such as motor controls, lighting panels and safety switches. (Somos Industria, July 2019)
  • Mining: Canadian-owned Compañía Minera Cuzcatlán plans investment of approximately US$12.8 million at its San José del Progreso mine in the southern state of Oaxaca, the company reported. Resources will principally support extended exploration at the silver and gold producing site. (Reforma, July 25, 2019)
  • Hotels: U.S. hotel operator Choice Hotels reported plans to open seven new hotels in Mexico this year via investment of approximately US$39 million. The new properties will target the business travel market and include locations in the cities of Monterrey, Querétaro, Pachuca, Villahermosa, Hermosillo and Mexico City. (Reforma, July 24, 2019)
  • Aviation: Mexican private aviation services provider Redwings reported plans to establish an aircraft maintenance center in the central state of Querétaro. The US$15.8 million FBO facility will provide specialized aircraft services including painting to regional operators. (Somos Industria, July 2019) Continue reading Recent and upcoming investment in Mexico

Will new agriculture policy affect import markets?

Mexican President Andrés Manuel López Obrador (AMLO) has made a career out of railing against the neoliberal capitalist model of at least Mexico’s last five governments.  He was swept into office last year most likely on the promise of putting an end to systemic government corruption, but along the way he dwelled heavily on providing relief to the poorest sectors of society.  The new president’s populist themes also include food and energy self-sufficiency, a nod to the import-substitution model popular among Latin American governments in the 1960s.  In order to take on two of these targets at once, AMLO has been rolling out a series of new programs to “rescue the countryside” (rescatar al campo) by providing focused support to small producers of basic foodstuffs. Continue reading Will new agriculture policy affect import markets?