Maquila Portal - Weekly Bulletin

Mexico Manufacturing Industry Information Center.


Bulletin 763 - Friday, June 17, 2016

Preparing bilateral Mexico-Italia agreement

Entrepreneurs of Mexico and Italy are preparing bilateral agreements, in an effort to strengthen business exchange, capture investment, promote exports and increase the number of travelers among both countries. Patrizio Baroni, VP of the Department for Mexico-Italy Business Relations of CONCANACO, pointed out that the Vento region, in Italy, will be the first to sign an agreement with Mexico's Confederation of National Commerce Chambers (CONCANACO), in support of business and tourism exchange. The objective, he said, in addition to export and import goods, is to create a project for joint production of services and merchandise. In addition, each one of the States in Mexico will be surveyed, along with different types of Mexican companies currently operating, and compared to those established in the different regions of Italy, so that small and medium businesses are given the opportunity to grow, creating new job openings and a brighter future. This work will be conducted over the current year, and by the time it is completed, it will be clear which Italian Region shares characteristics with which Mexican State, to help them get in contact and talk about their similarities regarding production lines or interests.


Source: El Economista

Queretaro attracts 15 investment projects

Marco del Prete Tercero, Ministry of Sustainable Development (SEDESU) in Queretaro, informed that 15 investment projects, worth US$222 million, were confirmed by the end of the first trimester of the current office, creating nearly 4,000 jobs. In addition, there are 52 projects pending in the agenda, standing for an approximate investment of US$888 million and the creation of almost 15,500 jobs. The State has created a record 22,197 new jobs during the first quarter of the year, with three new investment programs that arrived during March and April. These investment projects are coming from the U.S., Mexico and Japan; they are additional to other projects from five U.S. companies, two from Canada and two from France. Whereas Korea, Mexico, Italy and Ireland, have contributed one project each.


Source: Cluster Industrial

More Japanese investment in Coahuila

Akira Yamada, Japan's Ambassador in Mexico, communicated the intention of several executives from his Home Country to consolidate more investment projects in Coahuila, for an amount close to US$124 million, during a reunion with Coahuila's Governor, Ruben Moreira Valdez. The Diplomat underscored that security, education, skilled labor and the strategic geographic location of the State, are among the main topics up for discussion. Jose Antonio Gutierrez Jardon, Ministry of Economic Development and Competitiveness, was also present during the reunion, where the undertakings by the State Government to support new investment, were reviewed. During this administration, more than 120,000 jobs have been created in the State of Coahuila, exceeding the initial 100,000 goal set for the whole six-year term. Some of the principal Japanese projects have been Takata Acuña, Takata Torreon, Sanden, Vuteq, Kugami, Higuchi, Toyota Boshoku, Yazaki and Sumitomo, besides keeping close contact with JETRO.


Source: Zocalo Saltillo

Arca looking to operate a Coca-Cola franchise in the U.S.

Arca Continental, the Mexican soft-drink bottling company, which is the second largest producer of Coca Cola in Latin America, has recently signed a letter of intention with The Coca-Coca Company and the Coca-Cola Bottling Company UNITED, to operate a franchise of this brand of soft drinks in the U.S. Representatives of the Mexican Company, disclosed that a new enterprise, AC Drinks, will be set up, together with The Coca-Cola Company. UNITED will be a partner of AC drinks and it will independently operate in areas not included in the agreement, while The Coca-Cola Company will hold 20% of the stock shares of the new enterprise. The new enterprise will be based in the U.S. and will hold 11 production plants (9 in Texas and 2 in Oklahoma). The transaction is expected to be completed during the first trimester 2017.


Source: Manufactura

ZKW invests in Guanajuato

Austrian company ZKW, global leader in the manufacture of smart lighting systems for luxury automobiles, inaugurated its headquarters in Guanajuato Puerto Interior (GPI) Industrial Park in the Municipality of Silao, with an initial investment of US$40 million. The whole North American market of the NAFTA region will receive products from this plant. The factory was designed to grow in four stages, with expectations to reach a total extension of 64,000 square meters, with an estimated investment of US$10.5 million to build the second phase. Oliver Schubert, CEO of ZKW, assured that this company will employ about 400 people. Some of ZKW's clients are Audi, BMW, Volkswagen, Porsche, Opel, Volvo Car, Ford, Jaguar, GM, among other assemblers.


Source: Somos Industria

FDI In Chihuahua up 14%

The State of Chihuahua attracted FDI for US$344 million during the first trimester of 2016, representing a 14.4% increase over the US$300.5 million recorded over the same period in 2015, according to data from the Ministry of Economy of the Federal Government. By the end of 2015, Chihuahua was holding the fifth position among the states that received the most FDI in Mexico, with US$2.3 billion, topped by Mexico City, with US$4.97 billion; Nuevo Leon, with US$3.55 billion; The State of Mexico, with US$2.67 billion and Jalisco with US$2.5 billion. Broken down by sectors, the manufacturing industry recorded US$228.8 million; the mining industry with US$34 million; financial services US$29.9 million; realty services with US$27.9; transportation, parcel and storage reported US$17.3 million and commerce with US$6.2 million, among others.


Source: El Diario

Tecma Group of Companies Acquires Border Assembly, Inc.

The Tecma Group of companies continues to expand its presence in the industrialized and dynamic Mexican border city of Tijuana, through the acquisition of a second provider of Mexican manufacturing support, or shelter, services. The purchase of Border Assembly, Inc. (BAI) is the second such move made by the El Paso, Texas-based firm within a six month time period. The decision to expand Tecma's presence in Tijuana is derived from corporate leadership's belief in the present and ongoing promise of the diverse and expanding Tijuana economy. The growth in Tijuana’s manufacturing sector is being driven by the expansions of the medical device, electronics and aerospace sectors; and Border Assembly serves important clients in these, as well as a variety of other industries.

Border Assembly is company that has helped more than 70 American and international manufacturing firms start up and operate successful maquiladoras in Tijuana, Mexico. The industries it serves include electronics, communications, medical devices, textiles, aerospace components, apparel, furniture, sporting goods, toys, automotive components, and art, among others.


Source: TECMA

Grupo Lala buys Laguna Dairy

Grupo Lala informed recently its intention to venture in the U.S. with the purchase of Laguna Dairy, a US$246 million transaction, which includes three plants of production and five brands. If the transaction is completed, it would represent 7.8% of Grupo Lala's sales. Lala is the leading brand of drinking yogurt for adults in the U.S., while Promised Land and Skim Plus are super-premium milk brands highly regarded in the region, according to the statement issued by Lala to the Mexican Stock Market (BMV). The brand portfolio of Laguna Dairy includes products such as drinking yogurt under the brands Lala and Frusion, as well as the specialty milk segment under the brands Promised Land and Skim Plus. Lala has successfully become consolidated in the market over the years thanks to its acquisitions. It started operations in Guatemala in 2008, after buying Foremost Corporation, and has recently expanded business into Nicaragua.


Source: Manufactura

BAIC arrives in Mexico with new plant

Chinese assembler BAIC, announced that it is in the lookout for a place to open a new industrial building in Mexico by 2017, which would be the first plant of the company in Latin America. BAIC will venture in the Mexican market with models D20 and X25, a compact car and a SUV, respectively, that will be available in Mexico starting next June. BAIC will kick start its commercial operation in this country with six agencies distributed around Mexico City, Morelos and Queretaro. On the other hand, the alliance with the Mexican Corporation Picacho Grupo Automotriz, distributor of brands like Ford, Lincoln, Jaguar and Mazda, was consolidated last March.


Source: Manufactura

Audi's operation to create nearly 5,000 jobs

The start of operations at Audi's plant in San Jose Chiapa, Puebla, this upcoming month of September, shall generate 5,000 new job openings in 60 supplier's plants that are going to expand their factories, or that are coming for the first time into the State, informed Horacio Peredo Helguero, President of Mexico's National Chamber of Industry Transformation (CANACINTRA) in Puebla. Mr. Peredo considered that such investments strengthen the sector's endeavor to have a cluster to supply to local assemblers like Volkswagen Mexico, and to gain more participation with companies from other states. In addition, the new employment will bring about growth rates surpassing 14.2%, compared to the 35,000 positions currently active in auto part companies.


Source: El Economista

Thyssenkrupp expands stamping plant in Guanajuato

With an investment of US$20 million, Thyssenkrupp Materials Mexico had a 5,100 square meters expansion of its plant located in Silao, Guanajuato, where the new line of stamped products will be made, with prospects to increase annual production by 70%. The German manufacturer is currently producing 160,000 metric tons of raw aluminum pieces for its clients, which will escalate up to 270,000 metric tons after this refurnishing, thus increasing its labor force from 154 to 189 people. Arturo Gutierrez, Manager of the plant, further explained that the objective behind the increase in aluminum and steel stamping production, is to supply for the Premium companies that have recently started operations in Mexico, such as BMW and Mercedes Benz, besides satisfying the growing demand from its main customers, which include General Motors, Honda, Mazda, Martin Rea, Ford, Volkswagen, Audi, FCA among others.

Source: El Economista

Faurecia plant in Queretaro receives award from GM

For the first time, the Emissions Control Technologies (FECT) plant of Faurecia, located in Queretaro, received the GM Supplier Quality Excellence Award, to recognize an outstanding performance during 2015. This award is granted to suppliers that reach excellent scores in quality and delivery, based on a chart kept by GM, which includes checking for no defects in pieces and components, in addition to fulfilling 13 other prerequisites to obtain above-average results. Faurecia bought the Queretaro plant in 2010, where over 400 local people are employed. Faurecia Emission Control Technologies Queretaro plant, specializes on exhaust systems and manufactures components and complete emission control systems.

Source: Faurecia