Tag Archives: Food processing

Recent and upcoming investment in Mexico

  • Logistics: Mexican logistics services provider Onest Logistics is currently constructing a new operations center in the central State of Mexico, the company reported. The US$9.5 million facility is planned specifically to meet rapidly growing demand from e-commerce platforms such as MercadoLibre and Amazon. (El Norte, November 30, 2021)
  • Manufacturing: French rail car manufacturer Alstom is carrying out investment of approximately US$25 million at its plant in the central state of Hidalgo, the company reported. The company is upgrading equipment, installations and testing track for the construction of rolling stock for the Maya Train, currently being built in southeastern Mexico. (Reforma, November 25, 2021)
  • Automotive: German electronics and engineering multinational Bosch announced plans to expand production at its manufacturing plant in the central state of Aguascalientes. The US$83 million upgrade is expected to support increased output of the company’s automotive braking system components iBooster, ABS and ESP. (Forbes México, November 24, 2021)
  • Pharmaceutical: U.S. pharmaceutical multinational Baxter inaugurated a new production line at its plant in the southern state of Morelos, the company reported. The expansion is part of a US$100 million investment through 2024 that will allow the plant to increase production of kidney treatment products for the Mexican, U.S. and Latin American markets. (Reforma, November 23, 2021)
  • Electronics: Taiwanese-owned electronics manufacturer Kemet announced plans to expand its plant in the northeastern state of Tamaulipas. The US$20 million upgrade will allow the company to increase production of capacitors used by the automotive, aerospace and medical device industries, among others. (Milenio, November 11, 2021) Continue reading Recent and upcoming investment in Mexico

Recent and upcoming investment in Mexico

ECONOMY AND INDUSTRY

  • Canadian rail operator Canadian Pacific Railway reached agreement to acquire U.S.-owned carrier Kansas City Southern in a widely reported deal. The acquisition will create the first direct freight railway linking the three members of the USMCA North American free trade zone. (Reuters, September 15, 2021)
  • The Mexican subsidiary of Spanish bank BBVA raised its growth projection for the Mexican construction industry to 9% in 2021. BBVA Mexico’s head economist underscored however that the strong growth comes with respect to the sharp downturn in 2020 and should not be interpreted as full recovery for the sector. (Milenio, September 13, 2021)
  • Mexico became the world’s eighth largest exporter of food and agriculture products in 2020, the World Trade Organization reported. The country’s US$41 billion in agri-food exports were led by products such as beer, avocados, tequila, tomatoes and peppers. (El Economista, September 2, 2021). (La Jornada, August 18, 2021)

Continue reading Recent and upcoming investment in Mexico

Recent and upcoming investment in Mexico

COVID-19

During July the third wave of COVID-19 infections has accelerated in Mexico and the level of restrictions on mobility and business activities has increased.  One state returned to red, the highest level on the epidemiological traffic light system, and the number of states at the second highest level, orange, jumped from one to five.  The alert level in Mexico City continues to rise, going from green to yellow to orange since early June.  Nonetheless, the Health Ministry (Secretaría de Salud) has expressed reluctance to place strict restrictions on business and mobility in order to allow the economy to function.

ECONOMY AND INDUSTRY

  • Mexico’s exports of auto parts grew by an annualized rate of 22.5% through the first four months of this year, according to Economy Ministry data. Industry analysts cited increased regional content requirements under the new USMCA trade agreement as boosting exports to the United States and Canada. (El Financiero, July 19, 2021)
  • Same-store retail sales in June rose 14.4% with respect to the same month last year, the National Retailers Association (ANTAD) reported. Monthly year-on-year retail sales data continue to reflect the impact of store closings in 2020 due to the COVID-19 pandemic. (Citibanamex Reporte Económico Diario, July 13, 2021)
  • In May, a record number of visitors from the United States arrived by air in Mexico, according to the Anahuac Tourism Research Center (Cicotur). The 970,000 air passengers from the U.S. during the month exceeds the number for the same month in 2019, before the start of the COVID-19 pandemic. (Reforma, July 6, 2021)

Continue reading Recent and upcoming investment in Mexico