Maquila Portal - Weekly Bulletin

Mexico Manufacturing Industry Information Center.


Bulletin 757 - Friday, May 6, 2016

GM starts Cruze model production in Coahuila

General Motors started producing the new generation of the Cruze compact model in Mexico, which will be assembled at the Ramos Arizpe plant in Coahuila. The conditioning of the new production line in the Municipality of Ramos Arizpe required a US$350 million investment. Pedro Ruiz, GM's Marketing Director, said that the production in this Municipality will be aimed to supply the Mexican market at the beginning; for a medium term, it will be also for export. The Ramos Arizpe's complex manufactures 25% of the total of General Motors' vehicles in Mexico, reaching a production of about 173,000 units in 2015. Near of 87% of these vehicles were exported to Argentina, Brazil, Canada, Colombia, the European Union, Korea, China, the U.S., Japan, Paraguay, Russia and Saudi Arabia.


Source: Manufactura

Mexico will become Natura's most 'gorgeous' marketplace

Brasilian firm Natura estimates that the cosmetic industry will grow between 5 and 7 per cent in Mexico during 2016, more than half its total worth in Brasil and even in the entire Latin American region, said Renato Abramovich, brand CEO in Mexico. "Mexico is important for consolidated growth and within five years, it could become the most important country regarding sells of Natura Internacional (other than Brasil). We have been in Argentina for over 20 years and that is why we have a strong presence there, but we have only been in Mexico for 11 years, so there is still much (opportunity) left for us to grow here", stated the executive.


Source: El Financiero

Shipping Company from Netherlands, planning to land in Mexico

The ever changing winds of both Mexico's Energy Reform and the projects of port infrastructure to expand trade activities in this area, have only slowed down the momentum for Damen Shipyards Group from Netherlands in the last few months, but this ship is still in route, assured Giel Venema, Latin America sales manager. "Mexico's energy reform opened interesting business opportunities in this sector, since the increase of oil companies will, in turn, shoot up the demand for ships, but the industry has slowed its pace due to the dropping oil prices". Dmaen has had opperations in Mexico for the last four years, with increasing presence —barely decelerated by the price fall of crude oil—, and it already has a project to install offices in Mexico, where 63 ships built in shipyards of Tampico, in Tamaulipas and Guaymas, in Sonora have been sold so far, with another six ships under construction. There, with Mexican navy officers and civilian collaborators and design, assessment, engineering and technology provided by Damen, four or five ships are made every year using Mexican components, assured Venema. "All the steel used to build the ships is produced in Mexico. The shipping industry supply chain is still being created, but there is potential to develop companies to provide in the shipyard", he stated.


Source: El Economista

Kia supplier prepares its arrival into Nuevo Leon

According to the sub secretary of Economic Development of the State (Sedec), Samuel Peña, the Korean-Japanese firm Chemical & SKC Polyurethane will kick start operations of a new polyurethane resin factory for Kia suppliers, with a US$8.2 million investment. The company is located at Interpuerto Monterrey, in the municipality of Salinas Victoria. Tier 2 supplyers Dymos and Daehan Solution that will cater to Kia, are listed among the main clients of the complex. According to data posted in Nikkei Asian's website, this will be the first Chemical & SKC Polyurethane manufacturing unit in Mexico and it will be dedicated to supply the North American market.


Source: El Norte

Manufacturing industry re-gains employment in Sonora

Sonora's export manufacturing industry, that was stagnant during the 2008-2013 period, has been recovering over the last two years and an increase in job openings and export-related income is expected to occur in 2016, experts say. In 2010, according to data of Mexico's National Institute of Statistics and Geography (Inegi), there were an average 253 factories in the state, and despite the drop down to 216 factories in 2015, this year started out with 220 active factories. 117,349 employments were created by manufacturing companies in January, with revenues for a monthly average of US$600,000 during 2015. Although this industry shares 32 to 34% of the Gross Product of the State, Sonora holds the last place among Northern Mexico States regarding number of industrial buildings and employees hired, and the fifth place in import income. Alvaro Vallejo Aldama, president of Index Hermosillo, declared that the deceleration of the economy in the U.S. affected the Mexican industry, especially in Sonora, that experienced a slight improvement in 2015.


Source: Miradas

New investments arriving in Guanajuato

The Office of the General Direction of Economy in the state holds a portfolio of investment with over 40 projects to be completed within the next three years, specified Ramón Alfaro Gómez, head of the department. "We have the compromise to announce by August 31st, projects worth over US$1,200 million, related to 10 new investment programs, roughly". The most immediate investment is US$38 million allotted by the Japanese corporation Chiyoda, that will start building in a 4 hectare area in the industrial park Colinas de Leon. Vehicle interiors will be the main production in this facilities, to serve the U.S. market, as well as the local market. The arrival of this company is expected to result in the creation of 250 direct jobs. A continuous succession of industrial building start-ups is coming in the next months, to host companies from the plastics, metal mechanic, services, auto parts, among other sectors, also in the municipality of Leon. Besides, the first stone for the building of the Japanese company Mino Industry will be laid, with a US$37 million investment and 200 direct jobs operating by 2019. On the other hand, the construction of Vymnsa Leon's Industrial Park is scheduled to begin in the next few weeks, with a funding of over US$40 million.


Source: Cluster Industrial

Maquilas in Juarez under expansion

Javier Sanchez Carlos, Sub secretary of Economy of the North Zone, claims that some of the companies currently operating in Ciudad Juarez need to expand, and so they are considering to start operations in neighboring municipalities. This actions will bring economic growth to the state, with new industrial buildings and more services of transportation and communication. Three companies are looking for expansion, but this won't affect the municipality of Juarez, because investment and employment will stay within the region. In addition, job openings for technicians, engineers and industrial designers are also being encouraged, not just unskilled labor, said the officer.



German investment might arrive in Guanajuato

A meeting was held between representatives from 12 German companies and officers from the municipality of Celaya, Guanajuato, to discuss the possibility of opening a new Entrada Group Industrial Park. Currently, Entrada Group Industrial Park is developing its ‘Campus Industrial Celaya’ facilities in a 24.3 hectare area. 15 foreign companies are prospected to come into the new Campus Industrial, where over 4 thousand jobs will be offered. Representatives from all 12 firms will visit companies located in the State, to get to know the work environment, said the officer of social communications of Celaya, without disclosing any names.


Source: Cluster Industrial

New ThyssenKrupp facilities in Puebla

German-based ThyssenKrupp group inaugurated recently a new factory of automotive components in San Jose Chiapa, in the state of Puebla, with an investment of about US$10 million. Components for over 150,000 vehicles a year, will be produced in this facilities, which are located in the Audi Industrial Park. The company expects annual sells for US$300 million, once the maximum production rate has been reached said Jorge Sanchez, Director of Operations, Automotive Systems Division. The factory is built on a 5,771 square meters territory and employs 160 associates. "This Puebla undertaking is just the beginning of new investments by ThyssenKrupp in Mexico", said Thomas Müller, Logistics and Automotive Assembly CEO. Executives asserted that the company is planning to build another three facilities to start operations by 2020. According to data from Mexico's automotive association AMIA, 5.2 million vehicles will be produced across the country in 2020, 50% up from 2015.


Source: Expansion

Planning a new industrial park in Coahuila

GEVI Developers will soon start building a 42 hectare industrial park in the Derramadero area, in Southern Saltillo, Coahuila. There are also ongoing negotiations to complete the arrival of another new company. German Villarreal, executive of the firm, refused to comment about it due to confidentiality concerns, but he said that he will soon be in conditions to share more details about the investment, and the automotive company that will be installed in the complex. There are several industrial buildings belonging to Daimler Trucks and Chrysler, located in Derramadero, while some of their suppliers are in locations such as the Alianza Industrial Park, which will receive a new company within the next days, according to industrial sources. This is not another supplier for Daimler Trucks, like all the companies that are operating here up to now, but this time it is something completely different, and 50 direct jobs will be created by this new enterprise.


Source: Zocalo Saltillo

Saltillo engages investment for US$243 million

An investment for US$243 million benefited the City of Saltillo, Coahuila, during the first quarter this year, outgrowing the amount from last year. According to reports by the Direction of Economy Development of Saltillo, 18 plans for funding have been put to work, and 3,828 jobs have been created. Two of these projects came from the industrial sector, with a US$149 million investment and 100 new jobs, while the trade and service sector, on the other hand, has been working on 16 projects with an investment of US$93 million and 3,728 new jobs created.


Source: Vanguardia