Maquila Portal - Weekly Bulletin

Mexico Manufacturing Industry Information Center.


Bulletin 775- Friday, September 30, 2016

Altos Hornos de Mexico to invest US$1 billion

Steel company Altos Hornos de Mexico (AHMSA) will invest US$1 billion over the next two years. According to Alonso Ancira, President of the Administrative Council of the Company, the money shall be used to build processing plants in Coahuila and Durango. Mr. Ancira indicated that AHMSA is looking to gain access into the specialty steel market, such as automotive steel. Moreover the steel demand from the automotive sector, is not satisfied by the national industry. The executive informed that the Company is looking to expand its tin plate operations, as Mexico is currently importing 500,000 tons, which is why AHMSA is looking to increase its production, going from 150,000 to 400,000 tons. The operation of this plant will require up to 700 work positions.


Source: Expansion

Aguascalientes, home to 35% of Japanese companies

Out of every 100 Japanese companies operating in Mexico, 35 are located in Aguascalientes, contributing over 50% of the total FDI in the State. The firm HS Power Spring Mexico S.A de C.V, inaugurated recently its new headquarters, with a US$2.75 million investment, which will be dedicated to manufacture retractile systems for automotive safety belts. HS Power Springs is a firm with joint participation from the companies Hayamizu Hatsujo Co. LTd. and Suncall Corporation, which are suppliers for almost every major automotive in Mexico, including Nissan, Honda Chrysler, Ford, Hyundai, Kia, etc. The addition of 20 new formal jobs is expected with this project.


Source: Cluster Industrial

Mexico and Uruguay, working for bilateral commerce and investment

Officers from the Mexican Ministry of Economy (SE), led by the sub secretary of Foreign Commerce of the Ministry of Economy, Juan Carlos Baker, held a meeting in Mexico City with their counterparts from Uruguay, represented by Jose Luis Cancela, sub secretary of Foreign Affairs in Uruguay, with the objective of discussing mutual interest topics, namely commerce and investment. The upholding and correct application of NAFTA’s regulations, the objectives reached with its enforcement, and issues related to the function of this agreement regarding Regulations and Origin Certifications and Health Standards, were some of the items reviewed. The Ministry of Economy stated that the objective behind this update, is to increase the bilateral commercial exchange, while promoting reciprocal investment.


Source: MexicoXPORT

First industrial complex in Pedro Escobedo is underway

The project to build the first industrial park in the Municipality of Pedro Escobedo, Queretaro, is still in its planning stage, but it might be completed in the last quarter this year, informed Beatriz Leon Sotelo, Mayor of this Municipality. Also, depending on the industrial vocation of the Municipality, the type of industry fit to arrive here shall be defined, and likewise, the amount to invest. Pedro Escobedo is currently host to chemical products' and agro-industry companies, with a complex made up of 50 produce greenhouses, which grow tomato, cucumber, green tomato; in addition to a transport firm and a gas company. According to Leon Sotelo, the Municipality has the necessary qualifications to attract private capital inflow, both for industry and residential developments, and even to establish itself as a touristic destination.


Source: El Economista

DeAcero investing to expand its steel products line

World class steel company DeAcero, will invest US$300 million within the next two years, with the objective of integrating new products into the market and satisfying the growing demand for steel. Raul Gutierrez Muguerza, General Director of DeAcero, said that some lines of production will be expanded, in order to add new products to the Company's portfolio, and he specified that a project for a Japanese automotive company is being developed, which will absorb part of these resources. The Company currently has a 4 million tons annual capacity and serves different sectors of the steel industry with presence in Mexico and more than 20 countries such as the U.S., Canada, Guatemala, Costa Rica and Colombia.


Source: Nacion Transporte

Jalisco captures US$378 million in private investment

The Municipality of Tlajomulco de Zuñiga, in Jalisco, is about to reach a record private investment rates, valued at US$378 million during the first year of the current administration, mainly in the industrial sector. Alberto Uribe Camacho, Municipal President, said that 178% of the investment goal for three years, has been captured just during his first year in office, after generating different strategies, primarily to support the industry. 98% out of the total investment was contributed by the industrial and services sectors, and 2% was contributed by the home construction sector. As part of the new housing policy, the Municipal Government of Tlajomulco announced last June, a modification to the usage of land in 800 hectares that were exclusive for residential use, but now will be given industrial and commercial uses.


Source: El Economista

Rassini Frenos will supply auto parts to Audi Puebla

Mexican corporation Rassini Frenos, manufacturer of brake discs, recently started supplying components to assemble the Audi model Q5, hence investing US$35 million to expand its headquarters. Hector Galvan Venegas, General Director of Rassini, explained that nearly 600,000 will be produced to cater to the Audi plant in Puebla. Galvan Venegas also stated that the factory's expansion will help to increase the total production, shifting from 130,000 to 200,000 tons per year. With the new foundry area, new machining and painting lines, 180 new direct jobs were created, in addition to the 1,300 current staff members. Rassini Frenos exports 90% of its production to the U.S., Canada and Europe, while the rest is commercialized in automotive plants located in Mexico.


Source: El Economista

Yucatan is looking to join the automotive industry

The Deputy General Director of the Mexican Automobile Dealer Association (AMDA), Guillermo Rosales Zarate, underscored that Yucatan has a bright future to become a regional hub of development for the auto parts sector, since it has infrastructure, human resources, connectivity and transportation to earn a place as one of the major suppliers to cater to the national and foreign industry. Rosales Zarate disclosed that there are local businessmen already working in these projects, with all the potential to develop the auto parts industry from Yucatan, satisfying both the national and the foreign demand. He stated that Puerto Progreso will be a great ally to develop this industry in Yucatan, due to its location and its proximity to the East Coast of the U.S.


Source: Cluster Industrial

Queretaro and Saxony looking to make business

The energy and automotive industries, as well as service suppliers, are key sectors to reinforce commercial ties and investment projects between Saxony, Germany, and Queretaro. The Governor of the State of Queretaro, Francisco Dominguez Servien, declared that there are foreign entrepreneurs interested in investing in the State, hence holding a recent meeting with Stanislaw Tillich, Prime Minister of the Free State of Saxony and President of Germany's Federal Council (Bundesrat). The head of the Ministry of Sustainable Development (SEDESU), Marco Antonio del Prete Tercero, underscored that the automotive industry is the main sector to boost investment from Germany. Besides, there is also potential in Queretaro, to develop energy and stimulate the generation of energy-producing industry, for instance, solar cells.


Source: El Economista

ICON Aircraft announces new production plant in Tijuana

Chairmen from ICON Aircraft Corporation, have recently announced the arrival of a production plant into the City of Tijuana, Baja California, with a US$150 million investment and the creation of over 1,000 jobs in the region, with the objective of producing a complete structure for its A5 Aircraft, an amphibious sports plane that matches flight with the ability of landing and moving on water. The production plant will be located in the Thomas Alba Edison industrial zone, and is expected to be ready by early 2017, when carbon fiber fuselage structures shall be shipped out from these headquarters into the California, U.S. factory, in order to make the final assembly and flight tests.


Source: Siglo 21

Puebla planning to integrate four clusters in 2017

Representatives from various industrial sectors, are planning to create the metal-mechanic, foods, graphic arts, and textile clusters, as well as consolidating the automotive and auto parts clusters during the first half of 2017, aiming to attract more investment, generate more jobs, improve wages and stimulate competitiveness in these sectors. Carlos Salcedo Alatriste, Vice-President of industrial sectors, a member of the local chapter of the National Chamber of the Transformation Industry, (CANACINTRA), informed that there is true potential to develop clusters of the metal-mechanic, agri-foods, graphic arts, and textile in Puebla, due to the number of companies and employees they generate, as well as their constant activity.


Source: El Economista

Ford transfers to Mexico its compact cars' production

Ford will discontinue the manufacture of small vehicles in the U.S. and will transfer such operations into Mexico over the next two years, according to a report by Kelli Felker, spokesperson for the company. Ford Focus and C-Max will be the vehicles from which production will be transferred into Mexican plants, where Ford had previously announced the opening of a new factory with 2,800 workers. Ford Fiesta is already partially produced in Mexican facilities. High performance automobile Ford Focus RS is currently produced in Germany. The Firm had previously explained that the new Mexican plant does not signify job loss in the U.S.


Source: Manufactura

CONTEC SUMITOMO inaugurates two plants in Sinaloa

Japanese company CONTEC-SUMITOMO, has inaugurated two plants in Sinaloa, that will produce harnesses for Toyota. An investment of over US$7 million was made for this factory, and around 1,000 new jobs to benefit the North zone of the State. The company has formalized ten projects teaming up with CIT Sinaloa (Center for Investment & Trade) and the Council for the Economic Development of Sinaloa (CODESIN). Teiji Sakuma, President of Contec-ATR, expressed his great satisfaction with the projects established since 2003, which have already over 4,400 Sinaloan employees working.

Growth rates in the auto part manufacturing industry in Sinaloa, represent already a 2.5% of formal employment in the whole State of Sinaloa, and 11% in the North of the State. The connection of corporations established in the region, such as Delphi, Hikam and Walbro, with centers of technical and professional education in the region, has served to develop abilities and skills in the labor force to enable for more added-value activities, which are on high demand by manufacturing companies from other states.


Source: Uncategorised