Maquila Portal - Weekly Bulletin

Mexico Manufacturing Industry Information Center.


Bulletin 755 - Friday, April 22, 2016

BRP inaugurates a new plant in Ciudad Juarez

The Canadian firm BRP has inaugurated its second plant in Ciudad Juarez, Chihuahua, with an investment of US$37.4 million. About 900 people will be hired in this plant. The "Side by Side" Defender vehicle, for both recreational and for work use, will be manufactured at this facility. BRP has 10 years of operations in Ciudad Juarez and has manufactured components for boats, quads, and now the "Side by Side" vehicles. The new industrial building measures 36,000 square meters and was made by Vesta Corporate. The opening ceremony was attended by BRP's executives, as well as the Consul and Ambassador of Canada to Mexico, Governor of Chihuahua and Mayor of Ciudad Juarez, among others.


Source: El Diario

Lear Corporation generates more Jobs in Coahuila

With an investment of more than US$57 million, Lear Corporation, automotive accessories manufacturer, will establish two plants in the Comarca Lagunera in the State of Coahuila, which will generate 7,000 jobs. Ruben Moreira Valdez, State Governor, highlighted that Coahuila has exceed the State Government's goal with the creation of 100,000 new jobs, totaling over 120,000 employments.

Lear Corporation is a Company with presence in more than 35 countries around the world with more than 300 commercial names. Once established in Mexico since 1990, has accumulated 37 plants that generate up to 50,000 jobs in the Country.


Source: El Economista

Ford's suppliers arrive to San Luis Potosi

At least five auto part makers are searching for available lands located at the San Luis Potosi and Lagos de Moreno industrial parks, in Jalisco, in order to establish their new facilities and to supply the complex that Ford will construct in San Luis Potosi. According to Armando Bravo, Director of the Automotive Industry Development Center in Mexico, for every new assembler plant established in Mexico, between 10 and 30 Tier 1 suppliers arrive over the following two years. For example, the Japanese firm Advics, has recently inaugurated a plant in Jalisco to produce brake systems for Nissan and it is now interested in supplying Ford. On the other hand, the construction of this new plant will allow Mexico to rank sixth in global production, displacing South Korea, said Guido Vildozo, analyst of the automotive sector of IHS consultant.


Source: Manufactura

Establishment of Leoni's plant progresses in Yucatan

The European Company Leoni plans to establish a new plant in the State of Yucatan, with an investment of US$20.2 million and a generation of 2,600 jobs, Leoni's representatives said during a meeting with the State Governor Rolando Zapata Bello. Ralf Maus, General Director of the Company, highlighted the logistics scheme of Yucatan, as well as its air and sea connection, placing the State as an ideal place for companies, due the facilities to import or export materials and final products to the rest of the world. It is expected that the plant in Yucatan starts operations at the latest June 2017. It will be the fourth plant in Mexico and the third one that specializes in producing electric harnesses for vehicles.


Source: Por esto

Baja California goes for more investment and jobs

The industry sector and workforce are the main economic assets of Baja California. From 2012 to 2015, the industrial production growth rate picked at 7.3%, considering a 3% national average, according to Mexico National Institute of Statistics, Geography and Informatics (INEGI) data. Besides, the availability of workforce has been boosted by 82,000 migrants that arrived to the State and stress their labour market, resulting in the creation of 60,000 jobs last year. After two years of the administration, Governor Francisco Vega de la Madrid has focused on enhancing the economic development by boosting infrastructure, reaching more connectivity and lower energy costs, with the objective of attracting new investments. In accordance with Carlo Bonfante Olache, Minister of Economic Development in Baja California, the investment goal is per US$2.5 billion for this year. Local administration opened external offices aiming to have presence and trading margin in markets of Asia, Europe, the U.S. and Mexico. Tokio, London, San Jose California and Mexico City are cities from where officials work with potential customers and investors.


Source: El Economista

Autopart factories in Northern Mexico pose opportunities for US investors

In order to lower costs, the automotive industry in the US is currently in the state of Nuevo Leon, exploring the possibility of using Mexican supply chain, according to Raul Rangel Miguel, business partner with Butzel Long. In Mexico, supply chain companies for auto makers have still much potential to develop as exporters, as they are unaware of the legal resources to reach international markets, he weighed in. "Due to the exchange rate instability, it would be complicated for Mexican suppliers to establish locations within the US, since it would imply major dollar investments, but what they can do, is to increase their exports", he added. "Labor force costs for the automotive industry in Mexico are lower than those in the US and this country is set up to become the fifth automotive producer in the world, when the production increases from the current 3,349,000 vehicles, to 4,959,000 vehicles in 2019".


Source: El Norte

Murakami starts operations in Central Mexico

Murakami, the Japanese auto part maker, started its operations in Calera Industrial Park, in the city of Zacatecas, investing US$15 million and creating 500 new jobs. Rear view mirrors will be the primary production in this 55 thousand square meters plant. Taro Murakami, president of the company, presented some of its mid-term plans, which include expanding their distribution network to cover South America's budding auto market. He also stated that workers will receive training in Japan and US facilities, as they become part of the labor force. Murakami has 20 facilities in Japan, China, US, Indonesia y Thailand.


Source: El Sol de Zacatecas

Windshield manufacturer from Japan starts operations in the State of San Luis Potosi

According to a statement by the government of the state of San Luis Potosí, auto part maker AGC Automotive just opened a factory at its Logistik II Industrial Park, with a US$60 million investment, thus starting operations in Mexico. The Japanese firm will produce 750,000 laminated windshield units to cater to Ford, BMW, General Motors, Toyota, Mazda, Chrysler, Volkswagen (VW) and Nissan. Takuya Shimamura, president of AGC Automotive, reported that the initial staff is made up of 80 members, but the pojected staff will be 110 people working to serve the international automotive market with this company.


Source: Manufactura

Chinese investment to transform the state of Guerrero

Chinese executives are looking to invest roughly US$1,200 million to develop several projects in the state of Guerrero. Sources from the state's government report that Chinese executives from PRODOTEC presented a portfolio of investment within the automotive, agricultural, technology, port and industrial sectors, prospected for the communities of Pungarabato, Iguala, Eduardo Neri, San Marcos and Acapulco. The opening of a factory of agroindustrial machinery in the municipality of Pungarabato, headquarters for the auto maker Chery in Iguala, a high-end port in the municipality of San Marcos and the installation of a custom house in the community of Zumpango, in the municipality of Eduardo Nery, are among their most relevant projects. Besides, the Association of Chinese Entrepreneurs in Mexico, Zhongua A.C. and members of the Chinese Chamber of Commerce in Mexico, presented an investement project for developing industrial parks geared with wind and solar power in the Puerto Balsas area.


Source: El Financiero

Chrysler grows its production in Coahuila

Fiat-Chrysler (FCA) is to increase its vehicle and engine production in Coahuila, informed chaiman Bruno Cattori during a reunion with state governor Rubén Moreira Valdez. A new work shift will open to support the production of the Ram-Promaster truck in the “Derramadero” plant, stated Moreira Valdez. Besides, the vehicle production will go up from 274,000 units a year, to a record 330,000 vehicles produced this year, 98% of them for export, according to FCA (Fiat-Chrysler) board members. Engine production, on the other hand, will grow from 1,135,000 to 1,300,000. Over US$1,249 million have been invested in Coahuila by this corporation in the last three years, when the Fiat factory and engine plant began operations.


Source: Monitor Economico