Maquila Portal - Weekly Bulletin

Mexico Manufacturing Industry Information Center.


Bulletin 762 - Friday, June 10, 2016

Mexico, in Henkel's global Top Ten

Mexico is one of the top ten most important countries for Henkel worldwide, reporting two-digit increases in sales. Nonetheless, they are going for more, with a US$35 million investment to expand their Toluca headquarters. Oriol Bonaclocha, Mexico and Latin America President, said that they are also working to strengthen their brands, and staying open to new acquisitions. The plant in Toluca, which focuses on manufacturing home care goods, will increase its capacity by 70% this year. According to the Company's President, the market of home care goods, personal care products, and adhesive products and technologies, has been reactivated in the last 18 months, which has enabled the firm's growth during 2016. There are five production plants, two distribution centers and corporate offices operating in Mexico at this time with 90% of the production placed in the domestic market, while the rest is shipped to the U.S. and Central American countries.


Source: El Economista

Coahuila seeks to attract Asian investment

The Government of the State of Coahuila disclosed, after completing its most recent promotion tour through Asia, that the arrival of a new Korean supplier will be announced soon, as negotiations with investors are still underway. Jose Antonio Gutierrez Jardon, Secretary of Economic Development, Competitiveness and Tourism, explained that officers were following up on several projects. "In a few weeks, we will be announcing an investment plan from Korea; we are also in the final stretch of negotiations with another company from the automotive sector, a connectors manufacturer". The delegation visited again the headquarters of Mando, a company that is planning to establish three or four suppliers in the South Eastern region of the State. About the China trip, Mr. Gutierrez Jardon says they met with representatives from one automotive and one aerospace company that might soon be arriving to Coahuila.


Source: Zocalo Saltillo

Queretaro brewer, growing in Mexico

Cerveceria Rios, a 100% Queretaro-founded Company, has been going through rapid market expansion, increasing its production from 50 to 200 liters per day over four years, but they expect to produce three times as much, after the acquisition of last-generation equipment. First, production of Porter style beer started with 50 liters, 24 bottles a day for one year. Then, more technology was acquired to further increase the production towards the end of 2013. Nowadays, the brand has five types of beer in the market: Porter, chocolate, red kölsch, golden and mezcal; with a daily production of at least 200 liters, 22 cases of 24 bottles. Approximately US$142,800 will be invested this year with a view to triple production, establish standards for quality and optimize production times. Jorge Rios, Operations Manager at the Company, stated that another plant will be opening in December this year, with capacity to produce 600 liters. Potential clients await in Korea, Spain, Australia and New Zealand, remarked Mr. Rios, but the plan is to begin exports by 2018, once short and medium term goals have been accomplished.


Source: El Financiero

Nissan appoints new Director in Mexico

After rearranging its Directive staff in Mexico, China and Japan, Nissan Automotive is appointing Mayra Gonzalez as General Director and President of Nissan Mexico. Ms. Gonzalez's prior position was VP of Sales, Marketing and Development of Distribution Network, and she is replacing Airton Cousseau, who has been appointed President of the Firm in China. Ms. Gonzalez will come into office effective July 1st, 2016, thus becoming the first woman appointed president within the Nissan Group, worldwide. She has experience with Consumer Quality, Sales and Development of Distribution Network in North and South America. "This was the executive responsible of developing the first local distribution network project, which signified a sales increase of over 26,000 extra units a year, during the fiscal year 2012. She was also in charge of the strategic growth of distribution network in America, Australia, China and India", reads a statement issued by the Company.


Source: Manufactura

Five textile suppliers of Audi's arriving in Puebla

The Chamber of the textile industry (CITEX) of Puebla-Tlaxcala is on the lookout for five foreign companies of this sector that are setting up to supply Audi and other assemblers currently operating in Mexico, generating around 3,000 direct jobs. BoxMark, the Germany-based manufacturer of leather seats, is one of the first companies to buy lands at the Industrial Park, located in the Municipality of Santiago Miahuatlan, South of the State. Jose Miguel Brito Garcia Teruel, President of CITEX, detailed that textile firms are interested in developing or renting industrial buildings in the Municipalities of Huejotzingo and Tehuacan, in order to start operations. Two other German companies and one Korean firm, to produce upholstery, premium rugs, covers for bands and automotive cables, are also becoming established soon in the area. Mr. Brito mentions that, besides supplying Audi, other companies such as Volkswagen, Mercedes Benz and BMW, will be looked after, too.


Source: El Economista

88 Industrial firms prepare expansion in Queretaro

According to Esau Magallanes Alonso, leader of Mexico's National Chamber of the Transformation Industry (CANACINTRA) in Queretaro, about 14% of the companies enrolled with the Organization, have schedule expansions to their work centers for this year. At least 88 companies operating in the State, mainly from the automotive, aeronautic and food industry sector, will expand their facilities, creating in this manner, 4,000 new jobs, in addition to the 5,000 existing positions within the industrial sector. Furthermore, Mr. Magallanes Alonso calculates that 25,000 new jobs will be created this year.


Source: Cluster Industrial

Japanese company starts activities in San Luis Potosi

Japanese firm Nidec Tosok inaugurated a building at Colinas de San Luis Industrial Park, in San Luis Potosi, with an investment of US$86 million and 770 new direct jobs created. This company is dedicated to the production of control valve for automatic transmission systems for vehicles in the North American market. The inauguration was presided by Gustavo Puente Orozco, Minister of Economic Development, on behalf of the Governor of the State, Juan Manuel Carreras Lopez; Ricardo Gallardo Juarez, Mayor of the State's Capital city, Nidec's President, Tosok, Hiroyuki Yosimoto and Japan's Consul in Mexico, Yasuhisa Suzuki. On the other hand, the Minister of Economic Development underscored the export rate of the manufacturing industry, which amounted US$31.8 million from 2006 to 2015, with expectations to increase to US$67.5 million during the 2016 to 2021 period.


Source: Cluster Industrial

KYB plant starts operations in Guanajuato

KYB Corporation recently started operations in the KYB Shock Absorbers plant, located at Guanajuato Puerto Interior (GPI), in Silao, Guanajuato, that received funds by US$80 million, creating 300 jobs during its initial phase. Miguel Marquez Marquez, Governor of the State and Yasusuke Nakajima, Director of PR and President Executive Officer of KYB Corporation, were present at the inauguration ceremony. The Company has been pioneering hydraulic technologies since 1935, said Nakajima, and is currently a supplier for the automotive, construction, train, aeronautic and naval sectors. According to Governor Marquez, 182 companies have established offices over a three year term in several Municipalities of the State.



Employment in Maquilas grows 20% in Tamaulipas

The manufacturing sector in the border of Nuevo Laredo, Tamaulipas, recorded an increase of 20% in the creation of new jobs during the last three years, that is, over 30,000 formal jobs in 34 Maquilas, informed the President of Export Industry Association (INDEX), Guillermo Fernandez de Jauregui. Investment from companies located in the City grew by 5%. This is the main source of employment in this border, accounting for 38% of total jobs, followed by the transportation industry, with 26% and the services sector with 13%. Mr. Fernandez de Jauregui also said that there was an economic out pour of over US$143 million for wages and salaries within the manufacturing industry during 2015.


Source: La Verdad de Tamaulipas

Grupo Gondi to build Yucatan Headquarters

Grupo Gondi, manufacturer of paper and packaging material, has just announced the construction of a new plant in Hunucma, Yucatan, to serve the beer production market, as well as the regional demand. The industrial complex will have high-tech equipment, and it will be developed in two phases on a 50,000 square meters' terrain. Corrugated cardboard, high graphics on micro-flute corrugated cardboard and fold up boxes will be made in this factory, according to a statement issued by representatives of the Company, and it will operate under the lean manufacturing management scheme. This business model enables the maximum optimization of process and reduction of costs. This Industrial Complex will produce supplies for both current and future needs of manufacturing companies in the area, including Cerveceria Yucateca, and the market of South East Mexico and Central America.


Source: Manufactura

GM to expand its premises in San Luis Potosi

According to Emanuel Dominguez Landa, head of Development of Supply Chain for Drive line, General Motors assemblers, with headquarters located in San Luis Potosi, confirmed its plan for expansion with a goal to create more jobs. In addition, Mr. Dominguez mentioned that production in this plant might increase up to 720,000 vehicles this year. The Company announced an expansion of the stamping area, since national production has increased to 3.2 million vehicles a year and 5 million vehicles would have been made in Mexico by 2020, which will generate expansion in some areas. Regarding supply chain, local purchases went up by 8% in Mexico, shifting from 70% to 90% local parts assembled, hence recognizing the Bajio region as the most important nationally, because of the large number of assembly companies existing in the area, distributed along Guanajuato, San Luis Potosi, Queretaro and Aguascalientes.


Source: Cluster Industrial

Toyota is preparing investment in Queretaro

The Municipality of Corregidora, in Queretaro, has notice of at least 14 projects of investment that are set to arrive during this year and part of 2017, attracted by the landing of Toyota into the Municipality of Apaseo el Grande, Guanajuato. According to Mauricio Kuri Gonzalez, Mayor of Apaseo, the newcomers are medium and large companies that will create around 1,000 jobs each. They will be located on the highway to Tlacote, where the new industrial hub is being formed. "This industry is empathetic to the environment and is related to warehouse services, auto part manufacturing and it responds to the proximity to Toyota; therefore, most of the projects identified so far, are from suppliers of the Japanese Firm", added the Mayor. Besides, the goal to create 2,500 job openings this year, has already been surpassed, which is why the creation of over 3,000 new jobs has been prospected by the end of the year.


Source: El Financiero

Lala to grow in Guadalajara

Grupo Lala will invest US$6.9 million for the expansion of its factory of pasteurized products, located in Guadalajara, Jalisco, and the construction of three new distribution centers in the region. This will allow for a 30% increase in the capacity of production, to help satisfy the demand in the market, as well as to further strengthen their position in a highly competitive zone of Mexico. Christian Santiago, Director of Lala Group in the Occident Region, said that this investment is addressing the increasing demand for foods with high-quality nutrition. The plant in Guadalajara has an international “Safe Quality Food” certification (SQF level II), and a system to treat residual waters, which facilitates the usage of over 80% of treated waters to maintain green areas, according to a statement issued by the Corporation.


Source: El Economista

Jalisco, second place in investment

Jalisco has escalated positions regarding investment attraction, as it became the second State to attract the most FDI during the first trimester of the year, with US$1.14 billion captured, according to reports from the Ministry of Economy. Jalisco was topped only by Mexico City, which captured US$2.18 billion during the same period. Out of the US$1.14 billion received, US$699.8 million, more than 60%, are for new investment projects. Jose Palacios Jimenez, Ministry of Economic Development of Jalisco, said that the initial goal for FDI established for the State during this year, was US$1.1 billion, but it has already been exceeded with the results obtained from January to March. Compared to the first trimester of 2015, the State recorded 5.8% more investment during the same months this year.

Source: El Mural