Maquila Portal - Weekly Bulletin

Mexico Manufacturing Industry Information Center.


Bulletin 764 - Friday, June 24, 2016

Manufacturing activity continues to grow in Baja California

According to the Monthly Survey of the Manufacturing Industry (EMIM), issued by the Mexican Institute of Statistics and Geography (INEGI), there was a 17.2% increase in manufacturing activity in Baja California during the month of March, whereas the national rate grew by 2.7%. This accomplishment rendered the State champion of development in the North border and third State with the most growth in Mexico. The Government of the State, through the Ministry of Economic Development (SEDECO), presented a report that records 19 months of uninterrupted growth in Baja California, 18 of which, had two-digit increase rates. Regarding the number of employees, there was a 3.8% upturn, compared to March 2014, thus securing its position as the second fastest growing State in the north border and 6th Nationwide.


Source: Siglo 21

Jalisco attracts pharmaceutical industry

According to the Ministry of Economy (SE), the State of Jalisco captured US$1.14 billion FDI, during the first trimester of 2016, out of which 56% (US$643 million) belong to the pharmaceutical sector. Most of this funds are coming from Israel, with investments for US$641 million from January to March. During this lapse, the transaction where the Israeli firm Teva bought the Mexican pharmaceutical company Rimsa for US$2 billion, was finalized. This is a national transaction as Rimsa is already operating in Mexico. On the other hand, AstraZeneca, a bio pharmaceutical company, inaugurated in Zapopan, Jalisco, a Global Technology Center, with an US$11 million investment. The FDI rate of US$1.14 billion captured in Jalisco during this trimester, stands for a 50% larger number than the total amount of FDI captured during 2015.


Source: El Economista

Mexico and Europe re-negotiate Free Trade Agreement

Officers from both Mexico and the European Union (E.U.) will be meeting by mid-June for the first round of negotiations to update the existing bilateral Free Trade Agreement, announced the Minister of Economy, Ildefonso Guajardo, after meeting the European Commissionaire of Commerce, Cecilia Malmström. The main focus will be the creation of chapters about Electronic Commerce, Intellectual Property, Environmental Protection and Public Tenure, among other relevant topics, said Mr. Guajardo. The main objective is to adapt this agreement for "new challenges", making it similar to the agreements the E.U. has already signed with Canada, Colombia, Peru and Ecuador, as well as the U.S. treaty, that is still under negotiations. Business relations have been successful ever since the original agreement was signed, remarked Mr. Guajardo and Mrs. Malmström, with commercial exchange up by 250%, a total value of US$62.1 billion during 2015. Besides, the E.U. secured its position as the second largest source of Foreign Investment in Mexico, contributing 40% of the total amount.


Source: Manufactura

Nuevo Leon attracts investment from Ivory Coast

Marcelin O. Abie, Ambassador of Ivory Coast in Mexico, held a reunion with members of the Ministry of Economic Development of Nuevo Leon's State. Mr. O. Abie disclosed that entrepreneurs from Ivory Coast are interested in sectors such as construction and renewable energies. He expressed that “Nuevo Leon is almost a republic, regarding development" and there is great interest to promote Ivory Coast in this State, as there is not any company from said country operating in Mexico yet, and there is only one Mexican company in Ivory Coast, hence there are still plenty of business opportunities to explore. This meeting was also attended by the Ministry of Investment and Industrial Development, Samuel Peña Guzman; the Ministry of Industry, Commerce and Services, Lorenzo Aguilar Camelo, and the Ministry of Regional Development, Ernesto Lozano Martinez.


Source: Somos Industria

Güntner inaugurates its third plant in Nuevo Leon

Güntner, the German corporation, inaugurated its third plant in Apodaca, Nuevo Leon, with a US$3 million investment to manufacture compressors for industrial refrigeration systems. The production floor in this plant has an area of 4,000 square meters built on an 11,000 square meters surface, which provides enough room to facilitate expansion, if the growing demand prevails. Michael Schmid, General Director at Güntner, explained that their production is on high demand, since several industrial sectors, such as food and beverages and distribution, use refrigeration systems, but they could also serve the air conditioning business.


Source: El Norte

Plastivaloire is established in San Luis Potosi

French company Plastivaloire (PVL), European leader in plastic equipment for vehicle interiors, just announced that it will set up headquarters in Mexico, through a new affiliate company called "Plastivaloire Mexico", that will be located in the State of San Luis Potosi and it is expected to start production by late 2016. The group is looking for consolidation among plastic products manufacturers, deploying centers where automotive industry leaders are present. Plastivaloire confirmed in February its 2015/16 goals, after experiencing a 26.7% increase in sales during the first trimester, reaching a record of US$149 million.


Source: El Economista

Pirelli building his second Guanajuato factory

Italian company Pirelli just set the first stone to its second industrial building in the second floor of Puerto Interior, in Guanajuato, investing US$200 million. Pierluigui Dinelli, CEO of the NAFTA region for the Company, informed that a total US$600 million have been invested in Mexico from now until 2018. This second factory will be built across from their first industrial complex, in a 140,000 square meters surface, to escalate production from 5 to 7.5 million tires annually until the end of 2018. Production in the new plant will start by April 2017. About 400 workers will be hired, in addition to the current 1,400 direct employees and 400 indirect employees.


Source: El Financiero

Kodaco arrives in Coahuila

Ruben Moreira, Governor of Coahuila, attended the beginning of construction works of the Kodaco plant in Mexico. This is the first factory that will be established outside Korea, with an investment of US$102.8 million. The Company will create 400 direct jobs at the Santa Maria Industrial Park. On the other hand, Governor Moreira expressed that Coahuila is moving forward and becoming consolidated as the top third exporter state in Mexico and first in auto part production, and likewise, the State is champion in the creation of more and better jobs with the arrival of world-class companies such as Kodaco.


Source: Zocalo Saltillo

Kurashiko Kako Mexicana is inaugurated in Queretaro

Japanese manufacturer and distributor anti-vibration rubber components, Kurashiko Kako Mexicana, recently inaugurated a building worth US$5 million in the Santa Rosa Jauregui Delegation in Queretaro, with the presence of State Governor, Francisco Dominguez Servien. There will be 140 new job openings once operations start, asserted the Governor, and up to 180 jobs by the year 2017; besides having the goal of reaching a US$27.7 million net worth within one year.


Source: MexicoXPORT

Bosch reinforces its position in Mexico, creating 3,000 more jobs

The German group Bosch, manufacturer of automotive equipment, announced its intention to reinforce its presence in Mexico, with the creation of about 3,000 jobs in the short term, said Rene Schlegel, representative of Bosch in Mexico. He also underscored the potential of this country: it is ranked 7° vehicle producer worldwide and 4° global exporter in the automotive sector. According to the Mexican Association of Car Producers (AMIA), over 5 million vehicles will be produced in 2020, compared to the 3 million units produced in 2015. Bosch is planning to invest roughly US$102 million this year in its San Luis Potosi and Aguascalientes plants.


Source: El Economista

German enterprises are looking to invest in Mexico

German companies are willing to increase their investment in Mexico, a nation that has seen 1,700 firms invest US$15 billion so far. According to the German Ambassador, Viktor Eibling, Mexico is one of the best countries in Latin America to invest, and at least 7 out of every 10 German companies in this country, reassert their confidence in Mexican economy. Mexico is a vital ally of Germany, said the officer, as corporations from this European country are characterized by their strategy-based decision making and "This Latin American country is already becoming Germany's first commercial associate in the region, even on top of Brazil".


Source: El Economista

Mexican Corporation Femsa keeps growing

In recent days, the Mexican corporation Femsa has completed its third purchase, after buying 100% of the stock share of the manufacturer of food processing, conservation and weighing equipment, Grupo Torrey, as part of its Mexico expansion policy. Grupo Torrey manufactures refrigeration equipment, as well as meat grinders, saws, scales, among other products and aluminum smelting. The purchase of 49 locations of the Chilean convenience store Big John, for an approximate value of US$45 million, was also listed, in addition to the purchase of the soy beverage brand Ades, together with The Coca-Cola Co., in partnership with its subsidiary, Coca-Cola Femsa, a transaction worth US$575 million.


Source: El Norte

Faurecia invests in San Luis Potosi

Auto part manufacturer Faurecia inaugurated two plants in San Luis Potosi with an US$83 million investment, to produce dashboards and seat components for clients such as Volkswagen, Audi and Fiat-Chrysler. These new factories have created 1,250 job openings, including technical and management staff. About 65% of the production is aimed to the local market, and the remaining will become export, especially to the U.S. and Brazil. 35% of Faurecia's production plants in North America are located in Mexico, as well as 45% of its employees in the region. The Company has plans to increase its production and its labor force after the arrival of new vehicle assemblers in Mexico, said Mark Stidham, President of Faurecia North America.


Source: Manufactura