Tag Archives: petroleum

Recent and upcoming investment in Mexico

Information collected from media reports over the last month:

  • Candy: U.S.-based food processing giant Mondelez reported investment of US$133 million in its confectionery plant in the southeastern state of Puebla over the past three years. Resources helped expand production by 40% of chewing gum for brands such as Trident, Clorets and Bubbaloo. (El Financiero, August 31, 2017)
  • Petroleum: Australian mining and oil multinational BHP Billiton plans investment of approximately US$700 million in Mexico oil exploration, principally in the Gulf of Mexico, the company reported. BHP Billiton won rights to explore Gulf oilfields in a Mexican government tender last year. (El Financiero, August 31, 2017)
  • Industrial parks: A consortium of Chinese and Mexican investors including Holley Group, Futon Group and the Santos family began construction of an industrial park in the northeastern state of Nuevo León, local media reported. Investment of US$50 – 60 million is estimated for an initial phase of the facility, which investors project will attract up to 100 Chinese companies over the first 10 years of operation. (Expansión, August 25, 2017)
  • Food processing: Mexican industrial baking giant Grupo Bimbo plans to construct a major new distribution center in Mexico City, the company reported. The US$128 million site is planned to be LEED Gold certified and make use of wind-generated electricity. (Aristegui Noticias, August 29, 2017)
  • Gym equipment: Taiwanese-owned fitness equipment brand Matrix Fitness will invest US$3.5 million in a push to expand its participation in the Mexican market, the company reported. Matrix seeks to expand its market share from 5% to 30% by partnering with sports center chains such as Sport City and Smart Fit. (El Financiero, August 25, 2017) Continue reading Recent and upcoming investment in Mexico

Mexico energy reform proposal brings high hopes and some skepticism

We want it so bad
We want it so bad

We recently posted a brief review of some of the key reforms already implemented or proposed under the administration of recently elected Mexican President Enrique Peña Nieto.  The most highly anticipated, controversial and sure to be hotly disputed of these initiatives, the president’s energy reform proposal, was finally presented to Congress on August 12.   In the long run-up to the presentation of the official proposal, the conservative opposition National Action Party (PAN) presented its own energy reform program, and the leftist opposition Party of the Democratic Revolution (PRD) presented its alternative proposal shortly after the government made its presentation to Congress. Continue reading Mexico energy reform proposal brings high hopes and some skepticism

Reshaping the Mexican energy sector

Post by Agathe Vigne for Mexico Business Blog

Shale gasPetroleos Mexicanos (Pemex) and Mexico’s energy sector in general are bound to evolve in the next six years. That was one of Mexico’s newly elected president Enrique Pena Nieto’s  seven campaign promises.  To embody that  change, EPN is counting on two new leaders at the head of the ministry of Energy (Sener) and Pemex.

The new energy minister, Pedro Joaquin Coldwell, is a 62-year-old seasoned politician. A long-time member of the PRI, Coldwell has occupied a variety of positions inside the party and has served as local and federal deputy and senator for the state of Quintana Roo.

On the other hand, 37-year-old Emilio Lozoya Austin has been at the head of private companies and investment funds, as well as Director for Latin America at the World Economic Forum.  Except for his past stint as analyst at Mexico’s Central Bank, Banco de Mexico, Emilio Lozoya has no real experience in government. However, he is the son of a former energy minister under Carlos Salinas de Gortari, Emilio Lozoya Thalmann.

Though their profiles strongly differ – Coldwell, the experienced politician specialized in tourism and development, and Lozoya, the young financial shark – they  have one thing in common: they are new to the energy sector.  That could be seen as a weakness, as critics already warn of the privatization of Pemex and the uncontrolled selling of national resources to transnational companies. Continue reading Reshaping the Mexican energy sector