Maquila Portal - Weekly Bulletin

Mexico Manufacturing Industry Information Center.


Bulletin 759 - Friday, May 20, 2016

Regulation will foster energy sector investment

Mexico is a place of opportunity for business, and the energy reform is opening possibilities to develop projects within the sector, but there is still some clarification pending of certain aspects of the regulatory framework, said executives from Vopak, a company that stores hydrocarbon products. Changes in the Mexican energy sector have expanded both investment and growth opportunities in the market, even though the (positive) effects have been overshadowed by the international drop in the prices of oil, commented Jos Steeman, Operations Director at Vopak Oil Rotterdam.

Analysis and definition of the secondary laws of the energy reform currently under discussion by the Legislative power, shall provide the opportunity to clarify and consolidate the operations of companies from the sector, explained Hari Dattatreya, global Oil Director, during a walkabout through the storage terminal located in the Dutch port.


Source: El Economista

Agreement for vehicle exports to Argentina was announced

The Mexican Ministry of Economy (SE) presented an agreement to establish the procedure and criteria to assign quotas to export to Argentina new light vehicles, with the purpose of encouraging and promoting competition in the automotive sector. The SE states that, this undertaking is set up according to the Act of Foreign Trade, and has the full support of the Foreign Trade Commission. The quotas will be assigned directly and can be requested by any juridical person residing in Mexico that has an active registration as a manufacturer of new light vehicles and operates in the country. The agreement is effective as of April 20th and it expires March 18th, 2019.


Source: El Horizonte

Swedish entrepreneurs turn to Coahuila

Representatives from at least 10 Swedish companies will visit Coahuila next November, to explore the possibility of making investments, informed Ricardo Schumm Cerpa, Sub secretary of Economic Development, Competitiveness and Tourism. This mission was scheduled jointly with ProMexico's business counselor, Carlos Perez Cirera, and Swedish businessmen from the automotive sector, who are eager to learn about the opportunities for investment in the clusters of the Southeast and Laguna. The interest of the Swedish executives sprung as they found out about the amount of Tier 1, Tier 2 and Tier 3 suppliers and assemblers located in the state.


Source: Zocalo Saltillo

Aguascalientes hosts new Vitechmex Nonwovers headquarters

As part of the growing investment form the Japanese Vilene Company, Vitechmex Nonwovers laid the first stone for a new factory in Aguascalientes. This factory will produce automotive fabrics and upholstery. This new project is expected to create 150 new formal jobs in the two expansion stages of Vitechmex Nonwovers, with a US$20.5 million investment. According to Carlos Lozano de la Torre, Governor of Aguascalientes, 137 new projects for expansion and set-up of competitive global leading companies have been set up in the state during the past 63 months, bringing important economic benefits to the productive sectors within the region.


Source: Somos Industria

Foundry industry in Guanajuato grew 100%

The industrial production of metal casting in the state of Guanajuato, grew by 100% in the last five years, due to the rising demand of the automotive and home appliance sectors, among others. The upswing of the foundry industry, placed the state up from the 13th position it occupied during 2009, to the eighth position it holds currently, said Hector Galindo, Chairman from the Mexican Society of Foundry Workers, AC (SMF). The States of Mexico, Nuevo Leon, Jalisco, Distrito Federal, Coahuila, Puebla and San Luis Potosi, are still ahead in the race for this industry. Mr. Galindo Bañuelos explained that in the last five-year term, the production was 100,000 tons per year, while the record production is 200,000 metric tons nowadays and this amount is expected to grow continuously, at least until 2020, when the auto part/automotive industry reaches its goal production of roughly 5 million vehicles. In addition to this, there will also be clients from the aerospace sector, because of the proximity to the Queretaro cluster, disclosed Jose Luis Grajales, a member of SMF.


Source: El Economista

BMW starts building new San Luis Potosi facilities

BMW is setting the first stone of its new industrial building in San Luis Potosi (SLP) this upcoming June, said Raymond Wittmann, Plant Planning VP. US$1 billion are being invested in this new factory, which is expected to start operations in 2019. Wittmann reports that 100 professionals are working in Mexico, as other 100 work in Munich, Germany, to design and build these facilities, and the first 25 employees are being trained at the BMW Training Center, that was inaugurated in September 2015. "We have the first 25 trainees, in collaboration with the Technological University of San Luis Potosi, enrolled in the dual Germany education program". In addition, "this is the first city in the world that will have three large-capacity assembling plants. This is an advantage for the region and for Mexico, but it stands as an infrastructure challenge". 150,000 vehicles will be produced in these facilities, and 1,500 direct employees will be hired.


Source: El Universal

Audi Park will start operations with eight suppliers

The logistics park Just in Sequence by Audi, located in San Jose Chiapa, Puebla, will have eight suppliers, Faurecia, TI Automotive and ThyssenKrupp, among others already installed there. Arturo Achar Carretero, Audi Project Purchase Director, clarified that they have decided to host 8 auto part manufacturers instead of 20, as reported initially, and 1,000 new jobs will be created. Achar stated that some companies have already started production, Faurecia, for instance, producing seat covers, and ThyssenKrupp, producing rear and front axles for vehicles. Furthermore, TI Automotive, manufacturer of fuel pipeline and break systems, will relocate its Estado de Mexico, Tultitlan factory, to Just in Sequence Industrial Park, within the following months. Audi's industrial complex has a total 60 hectare surface, where two industrial buildings are being made, with a 24,000 square meters each. Out of the US$1.3 invested by Audi, US$800 million were allocated for infrastructure, US$350 million to support its Mexico suppliers, and US$230 million to support auto part manufacturers that set up in Puebla.


Source: El Economista

Whirlpool expands Nuevo Leon production

Whirlpool just installed a second line of production of large load automatic washers in its Apodaca, Nuevo Leon campus. With this line, the U.S. corporation is expanding its large-machines' production by 70%, selling most of these items in the Mexican market. The objective, according to Sergio Leme, president at Whirlpool Mexico, is to serve their consumers from a closer standpoint. Besides, the home appliances' sector is hitting record sales' rates, and so they are trying to prepare a good response to the increasing demand. "Four years ago, 100% of this type of washers were imported from the U.S., then we went down to import 60% and now we're importing only 20%", said Mr. Leme. 80% of the production stays in Mexico, while the remaining 20% is exported to Central and South American countries.


Source: El Norte

Toyota factory will build up industrial parks in Queretaro and Guanajuato

Three new projects for industrial parks are setting up in the municipality of Corregidora, in Queretaro, pushed by Toyota's arrival into the state of Guanajuato. These projects will occupy a 200 hectare area, and they are part of the portfolio of industrial development plans that the Secretary of Sustainable Development (Sedesu) of Queretaro is currently reviewing. The head officer of Sedesu, Marco del Prete Tercero, reassured that the projects to begin operations in Corregidora are directly related to supply requirements from Toyota. According to Del Prete, there are six projects undergoing the planning stage, which represent an investment estimated in US$571 million. Out of these six projects, three are prospected for the Corregidora area, and the rest will be developed adjacent to Queretaro's Intercontinental Airport.



Bosch will invest US$80 million to build in Queretaro

Bosch announced an US$80 million investment to build a new plant in Queretaro, where steering shafts and their components will be produced. The Company decided to build this new factory in order to increase their manufacturing capacities in North America and cater to this market. The factory is expected to start operations around the end of 2017, and 600 associates will be employed by 2019, once the factory has reached its full capacity. Likewise, Robert Bosch Mexico has two devices in the market to help reduce out pour of pollutants by diesel-powered vehicles. The first device is a filter that traps up to 90% of the soot released by diesel trucks or vans. The second device is a diesel to natural gas converter, which reduces up to 22% carbon dioxide and nitrous oxide emissions, as these gases are the main culprits of the Greenhouse Effect.


Source: El Universal

Vuhl will kick off operations in its Queretaro plant

The Mexican company Vuhl will set up in Queretaro the assembly plant of the first 100% Mexican electric vehicle by the end of the year, at the Parque Tecnologico de Innovacion Industrial Park. The installation of this plant brought about a US$3.7 million investment and the creation of 50 new jobs. On the other hand, Marco del Prete Tercero, head of the Ministry for Sustainable Development (Sedesu), reports that 15 vehicles have already been ordered from this company, to be delivered in December to Europe and Middle East locations. Back in 2014, during the vehicle presentation, Company representatives said that more than 50% of its contents are made in Mexico. It reaches a top speed of 245 kilometers per hour. Its price was estimated around US$109,000.


Source: El Financiero

Bodycote to open new heat treatment facility in Mexico

Bodycote, the world's largest thermal processing services provider, will announce the Company will open a new state-of-the-art heat treatment plant in San Luis Potosi, Mexico. Mexico is one of the largest automotive manufacturing countries in the western hemisphere, with many of the world's leading car manufacturers investing in manufacturing and assembly plants. Bodycote's latest investment, a 100,0002ft facility, established to serve the Country's extensive and growing automotive supply chain, will be capable of supporting large automotive projects and providing the necessary heat treatment services for technologically advanced components, such as complicated transmissions. The plant, which will be TS 16949 certified as well as holding all required OEM quality approvals, will offer a wide range of heat treatment processes, including low pressure carburizing, ferritic nitrocarburizing, and Bodycote's proprietary Corr-I-Dur® process.

In addition to the existing Silao and Empalme plants, the San Luis Potosi facility will be Bodycote's third plant in Mexico and will be able to provide customers with complementary services and qualified backup to the existing sites, if needed. It is scheduled to be fully operational by fourth quarter.


Source: Bodycote

Guanajuato announces new Industrial Park

With an investment ranging from US$80 to US$120 million, the Municipality of Colon, in Guanajuato is soon going to have a new Industrial Park, which will be built on a 79 hectares area. The peculiarity of this park is the AAA category of its industrial buildings, disclosed Alejandro Ochoa Valencia, President of the Municipality, to enable the establishment of water saving, energy smart, sustainable mechanisms. This is one of the three largest Industrial Park projects prospected for this year. On June 3rd, the first stone for the first Industrial Park will be set; the first stone to the second Industrial Park will be set in October, and the third one's, by the end of the year. These three Industrial Parks will occupy a combined surface of 239 hectares. Although the estimated investment for the Municipality of Colon, calculated beginning this year, was US$500 million, there is now a higher expectation to close 2016.


Source: Cluster Industrial