Maquila Portal - Weekly Bulletin

Mexico Manufacturing Industry Information Center.


Bulletin 760 - Friday, May 27, 2016

KIA supplier starts operations in Nuevo Leon

MCNS Mitsui Chemicals & SKC Polyurethanes, supplier to KIA Motors Mexico, just started operations in Interpuerto Monterrey, Salinas Victoria, with an investment of US$8.2 million. Shin Won Choi, Chairman of the company and Samuel Peña Guzman, Sub secretary of Industry and Trade of the Ministry of Economy Development of the State, attended the inauguration. The Company was founded through a business alliance between a Japanese and a Korean corporation and focuses in the manufacturing of automotive polymer, home appliances and furniture. "MCNS is a joint venture between the Japanese company Mitsui Chemicals and the South Korean SKC. Both companies manufacture polymers to produce seats, steering wheels, dashboards, trunk and door upholstery, mats, and so forth", stated the State government's officer.



Foreign Direct Investment is reaching Yucatan

The establishment of a Dutch shipping company in the city of Progreso de Castro, will add to the amount of Foreign Direct Investment in Yucatan, with a new factory starting operations, as well as expansions of two other companies of the sector, that will double employment rates, with over 1,700 new openings. Rolando Zapata Bello, State Governor, refers that topics about the agroindustrial sector were addressed during his recent Germany tour, in search of ways to improve the honey production in Yucatan, through the usage of new technologies and techniques. Besides, German entrepreneurs are interested in the dairy sector, which has been having surplus production, and they are also looking to invest in the State's automotive sector. Ernesto Herrera Novelo, Secretary of Economy Development (Sefoe) disclosed, on the other hand, that two other factories will increase their capabilities by doubling their associates up to 1,300 with additional jobs from the Dutch shipping company, opening an estimate 1,700 new jobs.


Source: MexicoXPORT

Bosch will rise up to 60% their local purchases

Rene Schleder, Bosch CEO, informed that the Company, with its 13 locations in Mexico, is looking to increase their purchases from Mexican suppliers by up to 60% in 2020, in order to keep its status as the Number One supplier of auto parts and components. Mr. Schleder underscored the 8% growth rate Bosch maintains in Mexico, as he informed their intention to continue investing in this market, with Original Equipment (to assemble new vehicles) and spare parts of vehicles that are currently in service. During an interview, he explained that: "Bosch will continue investing in this Country throughout 2016, mainly to expand our industrial buildings, especially those located in Aguascalientes y San Luis Potosi".Out of the total investment allotted for this year, US$20 million will be devoted to these two plants that manufacture low-pressure aluminum. The San Luis Potosi plant will produce two million gasoline systems and hose cases for the international market, and 100 employees will be required. Mr. Schleder reaffirmed their ongoing commitment with Mexico to fund not only new buildings, but also innovation and human talent. Over US$7 billion are invested each year for innovation and development in Bosch's headquarters around the world.


Source: El Economista

Pilot Plan to expedite Mexico-USA border crossing is announced

Mexico's National Council of the Manufacturing Export Industry (Index) is launching a pilot plan to assess four U.S.A. - Mexico crossing points (Nogales, Sonora; Ciudad Juarez, Chihuahua; and Nuevo Laredo and Reynosa, in Tamaulipas), in order to locate traffic jams and trouble passing merchandise through, both exports and imports, disclosed the Organization's President, Federico Serrano Bañuelos. This undertaking is based on the strategic work plan for infrastructure and safety, aiming to establish a world class logistics platform and develop projects to increase productivity and competitiveness, said Mr. Serrano. During this one-year ongoing process, the border crossing spots listed above will be assessed, as they are the crossing gates for up to 88% of total foreign trade merchandise to and from Mexico, with exports over US$226 billion in 2015 and imports valued in US$199 billion that transit through customs posts of North Mexico. Freight currently takes two to three hours to cross the border, causing delays in the delivery and affecting competitiveness. The objective of this, is to find out the reasons for this crossing times, so that new solutions to achieve a waiting times of less than 30 minutes to introduce merchandise from Mexico into the U.S. and vice versa, can be worked out.


Source: Uniradio Informa

Agroalimentary exports in Guanajuato, up 18%

Luis Ernesto Rojas Avila, Director of Guanajuato's Coordinadora de Fomento al Comercio Exterior (COFOCE), assured that the State has full potential to grow from "Mexico's Barn" to become "Mexico's Freezer", as 998,000 hectares of crops are distributed statewide, giving Guanajuato the seventh place in agricultural production among Mexican states. According to Rojas Avila, asparagus, fresh broccoli, frozen broccoli, diced broccoli, garlic, green peppers and strawberries are Guanajuato's largest exports to clients like the U.S., that buys 31.9%; Canada, that buys 1.74%; besides Honduras, Colombia, Brasil, Costa Rica and Guatemala.


Source: MexicoXPORT

Toyoda Gosei inaugurates new plant in Guanajuato

The Japanese automotive company, Toyoda Gosei inaugurated a new industrial building at the Parque Tecnoindustrial Castro del Rio, in Guanajuato, with funds amounting to US$53.2 million and 130 new job openings. Toyoda Gosei will produce surface finishings and other technologies for plastic decoration to cater to vehicle assemblers in Mexico. This is the investment project number 174 from 2012 to date, that have generated economic benefits for the State worth US$9.9 billion, thus creating job opportunities for over 60,000 people. This Company belongs to Toyoda Gosei North America Corporation and is a subsidiary of Toyoda Gosei Co., Ltd; General Motors, Honda, Nissan, Toyota and Ford, are among its main customers.


Source: Cluster Industrial

Kia takes investment to other states in Mexico

Kia's arrival to Nuevo Leon, besides bringing investment into the State, has promoted business activity in Coahuila and Tamaulipas, which captured over US$640 million from 19 companies, and almost 15,000 jobs were created. According to records from Coahuila's Ministry of Economic Development (SEDEC), since 2014, when Kia announced its arrival into Nuevo Leon, the State of Coahuila has been receiving investment for US$593.6 million with the arrival of 13 Korean automotive companies and 10,305 new jobs have been created. Tamaulipas, on the other hand, was able to get 6 investment projects for new industrial buildings and expansions, creating a positive economic flow of US$50 million, as well as 4,600 new jobs, assured Angel Ortiz, Ministry of Economic Development. There are also 26 more projects in the agenda, prompted by the arrival of Kia to Nuevo Leon, and if they are realized, US$1.5 billion and 17,000 jobs will soon benefit the State.


Source: El Norte

New Zealand will distribute Mexican agri-food

New Zealand is preparing to become a distribution hub for Mexican agri-food into the Asian market, as the effective date for the Trans-Pacific Partnership Agreement (TPP) approaches, assured Claire Kelly, ambassador of this Country in Mexico. New Zealand currently holds Free Trade Agreements with China and countries from the Association of South-East Asian Nations (ASEAN), which will encourage Mexican investment in this sector. In addition to making good use of the platform New Zealand is providing to export Mexican Products into Asia, it is also important to consider that this island, with a population of 4.5 million people, has potential to become an ideal market for Mexican fruit and vegetables, weighed in the Ambassador, as nearly US$209 million were spent on Mexican goods during 2014, according to a report by the Observatory of Economic Complexity.


Source: El Financiero

Saudi Arabia and Dubai, looking at Jalisco foods

During a Trade Mission into the Arabic Peninsula, interest about several foods, especially beef, chicken, lamb, berries, honey and some products of agave from the State of Jalisco, has been displayed by both authorities and entrepreneurs, according to Hector Padilla Gutierrez, head of the Ministry of Rural Development of the State of Jalisco (SEDER). Berries have arisen a special interest; therefore, the first shipment from the State might be completed soon, as well as inulin syrup of agave, since diabetes rates have sprung up among inhabitants of Arabic countries. Thanks to the regard of Arabic people for these products, short-term export plans for commodities of the broad, competitive offer from Jalisco's field, shall be effective soon. Another positive outcome of this tour, affirms the Head of SEDER in Jalisco, is that Arabic Nations have noticed Mexico's major agri-food offer, which is ready for direct export.


Source: Axopolis

Austrian company ZKW opens up in Guanajuato

Miguel Marquez Marquez, Guanajuato Governor, presided over the inauguration of the Austrian company ZKW, global leader in smart lighting systems for high-class automobiles. The Governor added that a US$40 million investment is expected during a first stage and US$10.5 shall be invested in the second stage of this expansion; about 400 people will be employed. The Company supplies firms like Audi, BMW, Volkswagen, Porsche, Opel, Volvo Car, Ford, Jaguar, GM, among others. Hirschmann and ZKW, corporations established in Guanajuato and based in Austria, generate a combined investment of over US$60 million, with 1,200 jobs. The Bajio Region has surpassed the North of Mexico as the most dynamic zone for construction and expansion of industrial parks, says Eva Hager, Austria's ambassador in Mexico.


Source: Monitor Economico

KIA Motors starts operations in Nuevo Leon

KIA Motors has formally started operations in its new plant at the Municipality of Pesqueria, in the State of Nuevo Leon. KIA Motors Mexico and its affiliate companies have invested US$3 billion to build this production center; besides, 14,000 job openings will be offered by 2017, adding those by providers, contributing to the State an estimated economic flow of US$1.5 billion over the next 10 years. Miguel Angel Lozano, Mayor of Pesqueria; Fernando Turner Davila, Ministry of Economic Development and Seong Bae-Kim, President and CEO of KIA Motors Mexico, attended the operations kickoff ceremony at the KIA plant, that has set out to increase Nuevo Leon's exports by roughly US$4 billion per year. The executive of KIA Motors remarked that the Corporation will continue investing in the development of its facilities until a peak annual production of 300,000 units has been reached.


Source: Miled

Tremec will invest US$60 million in Queretaro

Tremec, manufacturer of pieces and accessories for vehicles, is spending US$60 million on its Queretaro plant over the next three years. These funds will be used for investigation and development of new products, as well as expanding production capabilities, referred the Minister of Sustainable Development (SEDESU), Marco del Prete Tercero. This capital injection represents a 10% increase of the staff, which will add up to 1,500 employees. Tremec is one of the longest-serving companies within the industrial sector in the State, with 51 years of presence and a history of supporting the metal-mechanic transformation business that led in turn, to the foundation of the Automotive Industry in Queretaro.


Source: El Financiero