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Recent and upcoming investment in Mexico

Information collected from media reports over the last month:

  • Ports: The Mexican subsidiary of U.S. port operator SSA Marine is investing approximately US$48 million to construct an automobile roll-on roll-off terminal at the Pacific port of Lázaro Cárdenas in the state of Michoacán. The first phase of the site will have projected capacity to handle 700,000 vehicles per year. (El Financiero, March 28, 2018)
  • Chemicals: Mexican chemicals producer Cydsa reported plans to invest US$300 million this year in new business development. Key projects will include processing, storage and transportation of fuels, and a new plant to produce chlorine and caustic soda. (Reforma, March 23, 2018)
  • Tanks: Mexican industrial tank manufacturer Trailers y Tanques de Aluminio (Tytal) plans investment of US$30 million in two plants in the northern state of Nuevo León, the company reported. Upgrades are slated to increase output capacity for tank retrofitting for tanker trucks. (Reforma, March 21, 2018)
  • Industrial: Mexican corporate group Grupo Industrial Saltillo reported plans to invest approximately US$67 million this year across various industrial divisions in Mexico. Earmarked for upgrades are automotive foundry and machining operations and technology and environmental compliance in construction activities. (Reforma, March 21, 2018)
  • Gas stations: Spanish energy giant Repsol reported plans to invest approximately US$428 million to open gas stations in Mexico over the next five years. The company is targeting a nationwide market share of 8 – 10% via the effort. (La Razón, March 13, 2018) Continue reading Recent and upcoming investment in Mexico

Court blocks increase in gasoline ethanol content

A Mexico City District court last week accepted requests by environmentalists to suspend implementation of a regulatory change that would allow up to 10% ethanol in automotive gasoline in Mexico.  As Mexico Business Blog reported in July and August, Mexico’s Energy Regulatory Commission (CRE) published modifications to the country’s fuel quality standard, NOM-016-CRE-2016, in June permitting the increase in ethanol content. Environmental groups oppose the change arguing it will worsen air quality, and other groups with vested interests also raised objections. Last week’s granting of an injunction suspending the rule change for the moment reverts the NOM back to its previous language permitting up to 5.8% ethanol content, although ethanol-mixed gasoline is not currently sold in Mexican gas stations. In the wake of the latest injunction, both the CRE and its adversaries on the topic have a number of legal maneuvers open to them but local analysts are opining that the issue will remain tied up in the courts at least until next year.

Recent and upcoming investment in Mexico

Information collected from media reports over the last month:

  • Steel: Steel producer Ternium, subsidiary of Italian-Argentinian steel and energy conglomerate Techint, announced plans to build a US$1.1 billion hot rolling mill in the northeastern state of Nuevo León. The new plant will allow the company to produce more sophisticated hot rolled steel sheeting using the most advanced technology. (Metal Bulletin, September 28, 2017)
  • Tourism: Mexican industrial and services conglomerate Grupo IUSA initiated construction of a major new theme park in Mexico’s southeastern Riviera Maya tourism region. The US$840 million AMIKOO entertainment center is projected to include an amusement park, hotel, museum of Mayan archeology, convention center, shopping center, concert arena, food courts and other attractions. (September 19, 2017)
  • Manufacturing: Mexican bathroom fixture manufacturer Helvex reported investment of US$40 million this year to expand production capacity. A 30% increase in the company’s output of products such as faucets, shower heads and drains is allowing Helvex to target South American markets more aggressively. (El Financiero, September 19, 2017)
  • Logistics: Mexican pharmaceutical wholesaler Maypo inaugurated a new distribution center in Mexico City. The US$33 million complex includes 3.2 million cubic feet of warehouse capacity for dry and refrigerated product. (El Financiero, September 13, 2017)
  • Brewing: Mexican brewer Grupo Modelo, subsidiary of Belgium-based brewing multinational Anheuser-Busch InBev, projects investment of approximately US$777 million in 2018, the company reported. Projects were not specified other than that the company plans to expand production capacity. (El Financiero, September 8, 2017) Continue reading Recent and upcoming investment in Mexico