Maquila Portal - Weekly Bulletin

Mexico Manufacturing Industry Information Center.


Bulletin 770 - Friday, August 19, 2016

Fibra Macquarie Mexico announces closing of expansion and lease extension with Belden in Nogales

FIBRA Macquarie Mexico recently closed an expansion and lease extension for an industrial building in Nogales, Sonora, occupied by Belden, a manufacturer of signal transmission solutions in communication technology. The lease will enable Belden to expand its operations and increase its footprint in Nogales by more than 50%, from a 392,216 square feet building to 607,106 square feet. FIBRA Macquarie's internal administration platform team sourced the expansion and will supervise the project. The construction of the building expansion is expected to be completed by the fourth quarter of 2016. FIBRA Macquarie's industrial portfolio occupancy rate in Nogales is 100%.


Source: Fibra Macquarie

La Laguna Automotive Cluster under expansion

The development of a regional automotive cluster, from North Coahuila to Durango, will drive the development of local supply chain that has been under continuous growth, according to Jose Luis Hotema, President of the Laguna region cluster. Jose Rodriguez, elected Governor of Durango, established commitments with the purpose of achieving synergy with companies from this productive sector in Coahuila, as it has several competitive advantages, such as better connectivity and good human capital. There is a plan to incorporate companies from Durango into the Laguna cluster, in order to strengthen the hub of companies made up by 25 international firms and over 100 small and medium business, manufacturers or suppliers of services for automotive companies. These businesses are located in the Municipalities of Matamoros, Francisco I. Madero, Torreon and San Pedro, in Coahuila; as well as Lerdo and Gomez Palacio, in Durango.


Source: Zocalo Saltillo

Teleflex expands in Chihuahua

Teleflex Corporation announced a project to invest US$10 million to expand its fifth plant, called Planta Barrancas, which produces medical kits and catheters, disclosed Lorenzo Casas, Manager for the Firm. Mr. Casas said that Planta Barrancas will be located at the Industrial Park Las Americas and it will have a 350,000 square feet building. This will be constituted as the largest center for production and distribution of medical devices of the Firm in the entire Latin America region. This plant will create 150 new specialty jobs and will serve to the transmission of advanced technologies for extrusion, molding, automation processes and coating.


Source: El Diario

Yulchon starts operations in Zacatecas

Yulchon Mexico announced the upcoming beginning of operations in its specialty auto part factory with a US$35 million investment by March 2017. About 500 new jobs will be created in an initial stage at this plant located in the Municipality of Calera, Zacatecas. Yulchon Mexico will produce cold forge steel and carbon pipes and rolls, which are used to manufacture steering shafts and gears, camshafts, cylinders and coils, both gas and hydraulic, and struts. These products are used by several firms from the automotive industry, especially Kia, Hyundai, Honda, Toyota and Mazda.


Source: El Financiero

ABC INOAC opens factory in Queretaro

Auto part maker ABC INOAC inaugurated a new plant in San Juan del Rio, Queretaro, with a US$45 million joint investment by the Canadian firm ABC and the Japanese INOAC. The plant will manufacture exterior auto parts, such as spoilers. The factory will provide 60 direct jobs, although there are midterm plans to expand the staff to 300 associates. The expected production ranges between 10,000 and 15,000 units daily, which will be sold to clients like General Motors, Ford, Nissan and Honda. The inauguration ceremony was presided by Shane Kavangh, Plant Manager and Jose Luis Aguilera Rico, Ministry of Labor of the State of Queretaro.


Source: Manufactura

New American Plating Power Offices in Mexico

American Plating Power LLC, with over one decade of experience, knowledge and development in the global industrial power source sector, announced the opening of "American Plating Power Mexico", located in the Municipality of San Miguel de Allende, Guanajuato. The plant is conveniently located in the Bajio region, offering sales and service in all Latin America, working also as equipment supplier, training and tech service provider for several brands of rectifiers, besides providing certified calibration services for rectifiers. The new American Plating Power online store offers a complete line of spare parts available to suit most rectifier manufacturers, besides listing semi-new rectifiers, remote controllers, and other auxiliary items.


Source: Metal Finishing Mexico

Pinto Brazil arriving in Ciudad Juarez

Pinto Brazil Corporation, the specialty engineering firm providing technical solutions focused on the automotive industry, has just announced an upcoming investment worth US$1 million, to develop a new industrial building in Ciudad Juarez. The Group has invested in this town about US$3.29 million so far, with plans to set up a building in an area measuring over 3,500 square meters. A business meeting with head officers of the Corporation was scheduled through the Ministry of Economy and ProMexico, resulting in an agreement to train engineering students from Juarez at the company's main headquarters in Portugal. “Juarez is close to our main clients in the harness manufacturing and other businesses related to artificial vision, renewable energy, logistics, among many other ‘know how's' we cover", explained Vitor Cruz, who is in charge of the internationalization department at Pinto Brazil.


Source: Norte De Ciudad Juarez

GE plans Mexico investment worth US$2.2 billion

GE is planning to participate in 15 projects with its HA gas turbine within the next three years, advised Alvaro Anzola, Director of the Gas Power Systems division of GE Latin America. Mr. Anzola reckons that the energy reform enforced in Mexico has opened plenty of opportunities for GE to make new clients. In addition, the HA turbine technology was selected for a plant valued at US$600 million with a business partner still undisclosed, with GE investing 10%-30% of the total expenditure. "Mexico is the most important and attractive market of our Latin American operations nowadays", said Mr. Anzola.


Source: El Financiero

Emerson inaugurates new research center in Chihuahua

Emerson Corporation inaugurated one of the best facilities around the world in Chihuahua City, according to a statement from executives during the opening ceremony. This is the center for Research and Customer Training, which was built on a US$600,000 capital investment, equipped with state of the art technology to provide metrology services subject to the norms and recommendations from the Organization of Legal Metrology and standards from the International Oil Association. In this building, a client training laboratory, sales agents and support technicians will operate to help clients appreciate the advantages and savings in process optimization, as well as creating solution systems for world class companies.


Source: El Informador

Agri-food exports outperform oil revenues

During the first six months of this year, revenues from agri-food exports outperformed those obtained from oil sales in Mexico, remarked the Ministry of Agriculture, Livestock, Urban Development, Fisheries and Food (SAGARPA). Agri-food exports peaked at US$15 billion during the first six months of 2016, that is US$6.9 billion more than the US$8.1 billion obtained from oil sales during the same period. This reflects the larger production and grater dynamism in this sector, as well as increasing demand for Mexican foods in the international market. SAGARPA explained that, based on the statistics by the Bank of Mexico, agri-food products exports recorded a 5.6% annual increase during the first half of the year. With this, the commercial balance of the agri-food sector in Mexico had a US$2.4 billion surplus, equivalent to 62.2% more than figures from 2015 (US$1.49 billion).


Source: El Financiero

Mexico, with potential to be the first global producer of berries

Mexico has the potential and technology to become the main producer of berries worldwide, since this production has recorded a 75%increase over the last five years. Mario Andrade Cardenas, VP of Foreign Commerce with the National Agrarian Council (CNA), underscored that this production is expected to maintain annual growth rates of about 20%, which would double the total production by 2020. These fruits (strawberries, red berries, blue berries and cranberries) have become the third largest generator of agrarian income in the country, he added, with sales worldwide over US$1.5 billion. Mr. Cardenas also added that this is a high value product which benefits about 5,000 small producers from the States of Michoacan, Jalisco, Guanajuato, Baja California and Colima. 85% of the exports are shipped out to the U.S. and Canada, and the remaining go to European and Asian countries, especially Japan.


Source: Agro Tratos

Maquiladora industry propels new employment in Reynosa

The Reynosa maquiladora industry in the State of Tamaulipas, reported an upturn in job creation during the first quarter of 2016, reaching 105,000 active jobs. According to data from the Mexican Institute of Geography and Statistics (INEGI), there were 3,343 new jobs in the manufacturing industry, created in just one month. Martha Ramos Morales, Director of INDEX Reynosa, informed that at least 60 companies continue their plans for expansion for the upcoming months, increasing the number of jobs. In addition, the number of employees in this industry might reach 115,000 by the end of the year.


Source: Hoy Tamaulipas

Toray will build a plant in Mexico

Japanese textile manufacturer Toray will build a plant in Mexico, devoted to the production of automotive airbags with investment of nearly US$99 million, informed the journal Nikkei. This will be the first factory of the group to produce airbags in the Americas, with a kick start of operations prospected in 2017, hence increasing the production capacity by almost 20%. The facilities will be located in lands operated by its carbon fiber subsidiary, Zoltek Mexico. The company is planning to have strong demand for these products, as many car assemblers have plants in Mexico, to manage exports to the U.S., South America and Europe. Toray is looking to increase sales of its textile division up to US$9.8 billion para 2020.


Source: Cluster Industrial