Maquila Portal - Weekly Bulletin

Mexico Manufacturing Industry Information Center.


Bulletin 706 - Friday, March 27, 2015

BBB Industries has expanded its operation in Tamaulipas

BBB Industries has expanded its current 262,328 sq. ft. operation by an additional 288,731 sq. ft. within O'Donnell Del Norte Spec I building at Del Norte Industrial Park located in the Municipality of Reynosa, Tamaulipas.

BBB Industries, LLC, headquartered in Mobile, Alabama, is a privately held, world-class manufacturer and distributor to the North American vehicle aftermarket.

Under  the "LTD Parts" Brand known in the market as "Vision OE", BBB is a leading full-line supplier of domestic and imported applications that cover 95% of the North American vehicle market, providing premium-certified remanufactured power steering pumps, rack and pinion, gear boxes, alternators and starters for virtually all domestic and imported vehicles in North America. The company operated in Mobile, Alabama until 1998 when its major manufacturing operations were moved to Reynosa, Mexico.

The Reynosa market has a total base of approximately 30 million square feet of industrial space, with the presence of important manufacturing companies worldwide, such as Cargill, Foxconn, Corning Cable, Delphi, Visteon and Black & Decker, among others, mainly divided in; Consumer Products (31%), telecommunications (26%), electronics (16%), automotive (13%), and plastics (14%). Manufacturing and assembly represents the primary activity with 68% of the space over the last three (3) years, logistics/warehouse occupies the rest.

As today, O'Donnell has availability of 642,000 sq. ft. of industrial space, over 35 hectares land in Reynosa. The O'Donnell Pharr Manufacturing Complex is a multi-building industrial operations facility, established inside the Reynosa Industrial Park, strategically located at just 5 minutes distance from the Pharr-Reynosa International Bridge, and with easy access to the Reynosa-Monterrey Highway.

Other characteristics of Pharr Manufacturing Complex include the following:

  • 4 independent facilities of 160,000 sq.ft. each, divisible in 40,000 sq.ft. sections

  • 30 MVA electrical substation with high redundancy electrical power for the 4 buildings

  • Water treatment plant

  • Land reserve for future expansion

  • World-class corporate neighbors

  • Direct access to qualified labor due to its location and multiple public transportation routes

  • Gated, independent complex

    O'Donnell's current availability within the North East Mexico Industrial corridor includes:

    Monterrey, Nuevo Leon

  • O'Donnell Guadalupe I  115,736 sq. ft., divisible in 30,000 sq. ft. sections.

  • O'Donnell Guadalupe II  32,964 sq. ft.

  • O'Donnell Guadalupe III  85,294 sq. ft. 

Nuevo Laredo, Tamaulipas

  • O'Donnell PBB&R I  12,294 sq. ft.

  • O'Donnell PBB&R III 29,742 sq. ft.

  • O'Donnell LMC 45,338 sq. ft.

Source: Miscellaneous

GM will invest US$350 million in Coahuila

General Motors de Mexico informed that it will invest US$350 million to produce the next generation Chevrolet Cruze at its manufacturing complex in the municipality of Ramos Arizpe. "This amount is part of the US$5 billion Mexico investment announced last December, and it will strengthen the presence of GM Ramos Arizpe, consolidating Mexico as our sixth largest producer worldwide, with 7% of global production", said Ernesto Hernandez, CEO of GM Mexico. The Ramos Arizpe complex yields 25% of the total production of GM vehicles Mexico, with around 173,400 units manufactured in 2014. 87% of the vehicles produced by GM Ramos Arizpe are for export, with a presence in the markets of Argentina, Brazil, Canada, Colombia, European Community, Korea, China, U.S., Japan, Paraguay, Russia and Saudi Arabia.

Source: Reforma

Mexico seeks for French investment for aerospace and automotive sector

Ildefonso Guajardo, Minister of Economy in Mexico, began a meetings tour with CEOs of major French companies looking to increase and attract new French companies' investments in Mexico. The head of the Ministry of Economy met in France with the heads of Airbus, Safran and Renault. Guajardo explained that this visit is intended to get new French companies to start investing in Mexico and increase the investment of those that already operate here.

Source: El Horizonte

Magna International opens new plant in Queretaro

The automotive sector continues boosting investment attraction to Queretaro. The Canadian Magna International announced a US$135 million investment in a new plant that will generate 600 jobs during the first year of operation. Graham Burrow, President of Magna Affairs, explained that in this facilities, to be built in the AeroTech Industrial Park in Colon municipality, exterior automotive parts, including bumpers and lower panels, will be molded and painted. The plant will occupy an area of 8,320 square meters, and with this, Magna International will have 30 production plants in total, an engineering and product development center and more than 24,000 employees hired in Mexico. In this regard, Marcelo Lopez Sanchez, Ministry of Sustainable Development Department, said that the company's operations could begin later this year or early in 2016 and he stated that there sufficient skilled workers to meet the company's demand. In addition, the authorities will work with the educational sector to provide online training.

Source: El Economista

Toyota is about to define its decision to install a new plant in Mexico

Toyota is defining the plans to build its first auto assembly plant in Mexico, which could be approved next month, to produce the popular Corolla compact sedan in these facilities by 2019. A new assembling plant would represent an over US$1 billion investment by Toyota. The green light for the plant would suggest the final of three years' expansion freeze, imposed by Akio Toyoda, President of the Company. Toyota is one of the few massive vehicle manufacturers that does not have a large-scale production center in Mexico, a country that attracts the automotive and other manufacturers through low labor costs and easy access to the U.S., the Japanese company's largest market. The auto maker has a plant in Baja California that produces the Tacoma pickup truck, but it does not have a car assembly plant in Mexico. Recently, a delegation of executives from Toyota spent a week in Guanajuato and is currently in talks with local government officials about a potential plot of land that would give the auto maker enough room to expand in the future.

Source: Reforma

BorgWarner's second plant starts up

The Company BorgWarner opened in Ramos Arizpe, Coahuila its new Emissions plant, with an investment of US$39 million, its boldest global expansion move yet. Alberto Sanchez, Plant Manager, commented that BorgWarner started its Turbo plant operation in 2010, manufacuturing turbo charges for automotive OEM's and currently holding 310 jobs, while the new Emissions plant, which began operations last year, was set up with a US$39 million investment, generating 270 jobs during 2014 and it is expected to grow to a goal of 350 employees over the next two years. This firm already has 58 facilities operating in 19 countries with 22,000 employees, and it expects to reach revenues worth US$13 billion by 2020, which will be achieved by accelerating its innovation and development, through speed and agility from talented collaborators.

Source: Vanguardia

Mexico will become auto world power in 2017

Mexico is about to become an automotive world leader upon the arrival of new plants by 2017, which will boost production to 4 million units annually, said Armando Avila, Nissan Mexico Vice President of Manufacturing. As from 2016, Mexico will host manufacturers like Infinity, Mercedes Benz, Audi, BMW and Kia Motors, which represent over 50% of cars currently manufactured in Mexico. Armando Avila highlighted the role that Nissan has played in the Mexican automotive industry, which recorded growth over 18.5% during 2014 and set a record by exporting 538.972 automotive units, while 266.899 units were placed in the domestic market.

Source: Manufactura

Manufacturers lure suppliers from other regions

Cuprum, the manufacturer and distributor of metal and aluminum based in Monterrey, Nuevo Leon, recently opened a new plant in Juarez City, Chihuahua. The creation of 60 to 100 direct jobs to begin operations in this factory is prospected, mentioned Cuprum Metals & Laminate, a 60-year market experience company. The Monterrey plant has branches in Mexico City, Guadalajara, Torreon, Chihuahua and Queretaro. Its main customers are metals retailers and manufacturing firms, especially auto parts'. Since last year, the maquiladora sector in Ciudad Juarez has been experiencing exponential growth, breaking job creation records and 2015 started with the same momentum, as the occupancy of industrial shells keeps increasing, more plants are being built, and more companies become interested in setting in Juarez.