Maquila Portal - Weekly Bulletin

Mexico Manufacturing Industry Information Center.


Bulletin 761 - Friday, June 3, 2016

Ford to Make $1.6 Billion Investment in Mexico Plant

Ford says it will shift its small-car production from its factory in Wayne, Michigan to Mexico, a move that will create 2,800 jobs at its new plant in the San Luis Potosi state by 2020. The company is expected to invest $1.6 billion in its new factory in Mexico, where autoworker wages are far lower than in the United States. The Wayne factory, however, will not close once small-car production moves to Mexico in 2018. The Michigan-based factory is expected to see new vehicles produced there. CEO Mark Fields has repeatedly said the automaker remains committed to investing in the U.S. but will not alter its plans to also expand in Mexico. While it did not say what vehicles will be built in the new Mexican plant, Ford made it clear last summer that it planned to move production of its Ford Focus and C-Max hybrids cars from a plant in Wayne, Mich., to another country by 2018, the same year the new plant in San Luis Potosi, Mexico, is scheduled to open. Ford has said it will keep the Wayne plant open by building other models there, possibly a mid-size Ford Ranger pickup and a new Ford Bronco SUV.


Source: Reuters

More FDI for Yucatan

Ernesto Herrera Novelo, Secretary of Economy Development (Sefoe), talked about the plans of the State Government office to capture foreign direct investment. Herrera Novelo stated that a consortium of companies from Brazil and Belgium is investing US$285.7 million to build a beer brewery in the Municipality of Hunucma, offering 400 jobs during its initial stage, in specialties such as robotics and mechatronics. The Mexican consortium Grupo KUO, will invest US$500 million over the next five years, added the officer; from this amount, US$300 million have already been invested in the production of pork meat. In the same line, Bachoco is investing US$108.5 million to install an incubator of fertile egg in the Yucatan, in the Community of Tekax, and for the construction of farms in Kinchil e Izamal, where local people will be hired. The office is looking to get roughly US$54 million in additional funds for these projects.


Source: MexicoXPORT

Update of NOM for electric products will propel exports

The update of the Official Mexican Standards set known as NOM-003, regarding safety and quality guidelines of electric and electronic products, as well as home appliances, to be enforced from May 27 onwards, will drive export of products to the U.S. and Europe, assured the Mexican Organization for Standardization, ANCE. The Mexican Norm has been conformed to North American and European Standards, therefore facilitating exports to these markets. ANCE representatives explained that the NOM-003 update will be a referent for other norms, as it assesses each particular product according to its technical specifications and characteristics. Rafael Nava, ANCE's Executive President, underscores that the Electric Sector in Mexico has a production valued over US$12 billion, and out of this amount, US$7.5 million are destined to foreign trade, hence the importance of having standards that promote commercial exchange.


Source: Manufactura

New industrial buildings in Coahuila attract investment

Construction of new projects can be seen at Server Industrial Park, in Arteaga, Coahuila, with a 156,198 square feet industrial building for Voss Corporation among them. In another area of the Industrial Park, Valtic Corporation continues working on the edification of its plant. Likewise, it was recently announced that Hyundae Polytech Mexico is currently building 110,000 square feet facilities at Cactus Valley Industrial Park. Simultaneously, 360 Industrial Park advances its infrastructure by adding a business center and its first industrial building. At Industrial Park Santa Maria, the finishing details for the Dong Kwang Ramos plant, with an investment of US$50 million and the creation of 333 jobs, is being completed, as operations are expected to begin by next June.


Source: Vanguardia

Acherbis is building new headquarter in Coahuila

Acherbis Automation and Technology is investing about US$3 million in an Industrial Building in the Municipality of Ramos Arizpe, Coahuila, to serve the Automotive Sector in the State (stamping, die-cutting, machining and plastics injection), with 80 new jobs created and prospects of expanding into other States. 90% of this undertaking has been completed, but it must be finished by August, in order to start operations during October and November, stated Gerardo Covarrubias Chavez, President of Acherbis. The 4,000 square meters industrial building will stand next to Acherbis' headquarters, in the Torremolinos Urban Development. Once the building has been finished, the installation of equipment and machinery will follow.


Source: Zocalo Saltillo

Nuevo Leon will receive US$30.5 investment

Edificaciones Benavides, a building company, is investing US$30.5 million on a new industrial park in Pesqueria, Nuevo Leon, to accommodate service suppliers for Kia, and also to develop a new office tower in the Airport zone. Cardinal Business Park, with its 50 hectares surface, is the first project: 20 hectares are being developed with the US$22 million allotted for stage one, explained Mauricio Benavides, Director of the project. Four Level Logistics, from Guadalajara, in the storage and logistics business, as well as LogyTrade, from the U.S., a provider of logistics, distribution, and customs management services, are going to be the first companies to become established in the Industrial Park. Both are going to provide services to Kia and its suppliers and shall start operations before the year ends. The second project, with a US$8.5 million investment, is Torre Aeropuerto, a building with a 7,500 square meter area for rent, furnished as Class A offices, that is expected to be ready towards the end of 2017, asserted Mr. Benavides.


Source: El Mural

Magna Exteriors inaugurates Queretaro factory

The manufacturing company Magna Exteriors just started operations in its Queretaro plant, creating 350 new jobs, with a US$135 million investment. AeroTech Industrial Park, in the Municipality of Colon, is going to be the location of the new Magna headquarters. Molding and painting of exterior auto parts, including fenders, and interior panels for global vehicle manufacturers, are going to be produced here. According to data from the Company, the project will start with a capacity of production of 2.5 million fenders, offering 350 new jobs during its first year of operations, which will later escalate to 600 jobs by 2017 and over 900 jobs in 2018.


Source: El Economista

Tamaulipas to receive Italian investment

The Italian group Haemotronic will invest nearly US$10 million to establish a new Industrial Building in Reynosa, Tamaulipas, to manufacture medical products. Ettore Ravizza, Executive Manager of the Firm, informed that the construction process is set to start this upcoming month of November, and operations are expected to start by January 2017. The good market conditions, the geographical situation, but most of all, the labor force from Reynosa, were the reasons behind this investment. Soon, staff recruitment will begin, to provide training before operations start up.


Source: El Semanario

SJM Flex opening in Guanajuato

The Korean company SJM Flex Mexico, manufacturer of flexible exhaust pipeline, kick-started operations at the Guanajuato Puerto Interior (GPI) logistics center, with an investment surpassing US$18 million and 200 direct job openings. This undertaking corroborates that the Municipality of Silao is still the main destination for Automotive Investment in the State, as 91 out of 213 companies that have arrived over the last ten years, are located here, according to State Governor Miguel Marquez Marquez. These companies have invested US$12 billion across the State and have generated 82,000 jobs. SJM Flex Mexico is a supplier to major companies like General Motors (GM), Hyundai, Kia and Nissan.


Source: Cluster Industrial

German companies to increase investment in Mexico

75% of German companies in Mexico will increase their investment in this Country, as it is regarded as one of the most reliable destinations for investment, both in Latin America and worldwide, declared Germany's Ambassador in Mexico, Viktor Eibling. German companies contribute roughly 8% of Mexico's GDI, and German investment shall go up to US$25 billion during this presidential term, with 150,000 direct and indirect jobs created. Mr. Eibling also commented that 54% of the surveyed companies will hire more employees, which reflects the trustworthy, favorable business environment found in Mexico.


Source: El Financiero

Industrial investment in Tamaulipas on the rise

Around US$900 million have been invested so far in new businesses from the Maquiladora Industry installed in the border region of Nuevo Laredo over the last seven years, according to Guillermo Fernandez de Jauregui Velasco, President of Mexico's National Export Maquiladora Association (INDEX). The investment of established Maquiladoras has increased 5% during the last three years, in a total of 34 manufacturing plants. This has prompted the creation of over 30,000 jobs in the industrial sector, that is, a 20% increase in employment.


Source: La Verdad de Tamaulipas