Maquila Portal - Weekly Bulletin

Mexico Manufacturing Industry Information Center.


Bulletin 756 - Friday, April 29, 2016

Swedish Company invests in Nuevo Leon

The Swedish Company Beckers, producer of high durability coatings, inaugurated its first plant in Mexico, with an investment US$8 million. The new plant will be located in the Municipality of Apodaca and it will produce paints used for coils coating and other applications, and will generate 50 direct jobs. Boris Gorella, President of the European Consortium, stated that Beckers produces coverings for agriculture equipment, construction, trucks, automotive plastics and rail transport. Fernando Turner Davila, Minister of Economic Development in Nuevo Leon, for his part, highlighted the importance of local and international companies arrive to the State, contributing with technology, committed to the environment and generating growth opportunities and new employments.


Source: El Economista

Jalisco attracts investment from Israel

The Company is present in countries such as the U.S., United Kingdom, Ireland, India, Cyprus, Brazil, Canada and Australia. Hundreds of jobs within the technological sector will be generated in Jalisco. At global level, AMDOCS has a workforce of 24,000 jobs, customers around more than 90 countries and reached profits per US$3.6 billion last year.


Source: El Informador

CKD starts operations in Queretaro

The Japanese Company Creative Knowledge for Development (CKD) will start operations at the Queretaro Industrial Park, establishing its first plant of components for the automotive sector in Mexico and Latin America with a US$2.7 million investment. Kazunori Kajimoto, President of CKD Corporation, highlighted that with the production of this plant they will meet the demand of their customers in Mexico, such as Nissan and Toyota, as well as tier 1 suppliers of the Japanese automotive industry mainly. He stated that, first of all, the plan is to serve Japanese firms established in Mexico with the objective of gaining market, later on they will approach to OEMs and machinery and equipment manufacturing companies. Kajimoto said the goal is to generate sales per US$10 million yearly over the next five years and to produce for the local market and the U.S. and Central and South America's markets.


Source: El Economista

Chrysler verifies its bet on Coahuila

Fiat Chrysler Automobiles (FCA) is looking to increase its production in Coahuila, both of vehicles and engines, disclosed its president, Bruno Cattori to Governor Rubén Moreira Valdez, during a meeting in Mexico City. Therefore, an additional shift will be opened to work on the production of the Ram ProMaster truck in its Derramadero facilities. The corporation has invested US$1,249 million in Coahuila so far over the last three years, just as Fiat and its engine plant started operations. Likewise, additional information and charts were presented, to show that Chrysler will make purchases in Mexico for US$12,000 million, with a US$2,210 million portion invested directly in Coahuila.


Source: Zocalo Saltillo

New Federal Act of Special Economic Zones approved by Mexican Senate

The Senate of the Mexican Republic has approved the New Federal Act of Special Economic Zones as well as the amendment to the Article 9 of the General Law of National Assets, aiming to regulate the planning, establishment and operation of the most underdeveloped areas in Mexico, socially and economically. This new law is seeking to reduce poverty, while strengthening basic services and expanding opportunities for a healthy, productive life in zones of Mexico with the most delayed social development, through promoting investment, productivity, competitivity, employment and a better distribution of income amongst the population. According to the report, "Offices (of this program) must open in communities that, as of the date of the assessment, were listed among the ten poorest (nationwide), according to official data from the National Council for the Assessment of Social Development Policies". Those areas will be deemed priority zone for national development and the State shall promote incentives to have both the private sector and society in general, contribute to the economic and social development of their host communities through sustainable industrial policies that effectively address issues of various sectors and regions. Senator José Francisco Yunes Zorrilla stated that this new law considers adequate mechanisms for the National Council of Science and Technology and the National Institute of Geography and Statistics to interact in the design and application of these policies in order to make them feasible and adjuvant to the sustainable and equal development of the community, with the ultimate goal of closing the (historical) social gap.


Source: AMPIP

Italy, ready to invest US$2 billion in México

Mexican President Enrique Peña Nieto and Italy's Prime Minister, Matteo Renzi, asserted that some Italian companies are willing to invest in Mexico's energy sector. Nearly US$2 billion are expected to arrive in 2016-2017, plus another US$600 million additional investment prospected by Pirelly, stated Peña Nieto. Likewise, direct flight services Italy-México with the company Alitalia, are set up to open this upcoming June to improve connectivity, tourism, business exchange and entrepreneurial relations between both countries. Several instances for cooperation were revised as well, including support systems for small and medium size companies. The Prime Minister also recognized the presence of Italian investors, such as Pirelli, in the state of León, with over US$1 billion invested. The Mexican Government has pointed out that renewable energies, the automotive and auto part industry and the sea-goods and alcoholic beverage sectors, present Italy with good areas of opportunity (to expand their business).


Source: El Economista

More investment from Pirelli in Guanajuato

Pirelli will increase its production capabilities to 7.5 million tires by 2018, after their new plant has been installed, in addition to the one currently operating in Guanajuato's Puerto Interior since 2012. The estimate production in this new factory will be 2.5 million tires. The new investment will begin in 2016 and is adding up to the US$360 million invested so far, and the US$50 million alloted for the 2016-2017 work year. The cumulative expenditure in both Silao facilities will be over US$600 million by the end of 2018. Regional sales of Premium tires grew by 24.3% during 2015, which stands for 90% of total local sales. Last year's sales reached roughly US$972 million, with a 21.7% increase. This makes up for 13.7% of Pirelli group total sells, that has already outdone its 2013-2017 industrial plan.


Source: AMPIP

SKF inaugurates new plant in Jalisco

The new industrial building of the Swedish company SKF, which was named "Sealing Solutions Factory", according to its production, was recently inaugurated at Technology Park, in the municipality of Zapopan, Jalisco. This will allow for a continuous increase in production, especially for North American automotive OEM's. Stéphane Le Mounier, President of the Automotive and Aerospace Division, insisted that the company's expansion in Mexico is aiding the development of their sealing solutions business in North America.


Source: AMPIP

New Bosch factory to be built in Mexico

Bosch de Mexico, the German-based corporate, announced an investment of nearly US$80 million to build a new factory of automotive power steering in the state of Queretaro, as part of an agenda to invest up to US$ 500 million over the following four years. The works to build the industrial complex are about to begin, and it shall be completed by the end of 2016, whereas the production lines will be installed in January 2017 and the production will start up in December 2017. The company is planning to hire 600 new associates and assess plans for future expansion by the end of 2019. Three products for passenger vehicles will be assembled in this facilities initially: manual steering shafts and two types of electronically assisted power steering.


Source: Notimex

SSA Mexico will invest US$ 50 million for an automotive specialty terminal

After overcoming a long legal process, the specialty port terminal firm SSA Mexico signed a grant for 30 years to develop the first Automotive Specialty Terminal (TEA) in the port of Lazaro Cardenas, with an investment of over US$ 50 million in its initial stage. These facilities will respond to the growing needs of the automotive industry, with the capacity to move up to 750 thousand units a year, creating over 400 direct jobs during its building stage and over 250 direct jobs in its operational stage.


Source: Notimex

Ruskin inaugurates new building in Ciudad Juarez

Ruskin, manufacturer of fans and grids for air conditioner, subsidiary of Johnson Controls, recently inaugurated a new factory in Ciudad Juarez, creating 390 new jobs. The new plant started operations since May last year, with a minimum capacity, but it was inaugurated after reaching full-capacity production. The growth of the company is placed in a context of workforce expansion, supported mainly by the Maquiladora industry. In the last 5 years, manufacturing has been the largest-growing sector, which has created over 85% of new jobs in town.


Source: El Diario

Jeep Compass and Patriot will be made in Mexico

Sergio Marchionne, General Director of Fiat Chrysler Automobiles, disclosed details of a plan to exit the small and medium vehicle market in the U.S. and restructure factories to enable production of pick-up trucks and all-terrain vehicles. Cars like Charger, Challenger and 300, as well as luxury brands, like Alfa Romeo will continue in their catalog; part of the production will be moved to Mexico. There will be more job openings, said Marchionne, although it is not clear yet in which departments. The business plan includes so far: Restructuring the FCA factory in Sterling Heights, Michigan, to enable production of new Ram pick-ups by 2018. Refurnishing a factory in Warren, Michigan to assemble Jeep Wagoneer or Grand Wagoneer and then, moving the production of compact trucks Jeep Compass and Patriot to Toluca, Mexico, once the new versions become available.


Source: El Economista