Maquila Portal - Weekly Bulletin

Mexico Manufacturing Industry Information Center.


Bulletin 779- Friday, October 28, 2016

Japanese companies arriving in Guanajuato Puerto Interior

Japanese companies Fuji OOZX and DMS Molds inaugurated their plants in Guanajuato Puerto Interior (GPI), to be the location from which supplies will be shipped out to all of Mexico's automotive industry. DMS is a manufacturer of steel molds for the production of cast aluminum pieces, which will invest US$7 million during its initial stage, creating 26 direct jobs Fuji OOZX, that produces engine valves, will invest US$33 million on the Municipality of Silao and will generate 150 direct jobs. Luis Manuel Quiroz Echegaray, General Director of GPI, on the other hand, said that 108 companies from 18 different countries have become established after the creation of Puerto Interior, with capital investment worth over US$3.5 billion and the creation of over 16,000 work positions.

Source: El Financiero

German businessmen reaching out to Nuevo Leon

With the intention of increasing the exchange of commerce, development and knowledge, a delegation from Turingia, Germany, ready to meet entrepreneurs established in Nuevo Leon and the different universities, with the objective of setting up formal projects. Wolfgang Tiefensee, Ministry of Economy, Science and Digital Society, said that the interest of the entrepreneurs is to make business automotive, metal, electronics, food and chemistry sectors, among others. Samuel PeƱa Guzman, Sub-secretary of Investment and Foreign Commerce, mentions that 58 German companies operating in Nuevo Leon generate over 7,000 direct jobs. He also added that, during the first semester of 2016, nearly 15% of the announced foreign investment is coming from Germany, mainly from sectors such as automotive, advanced manufacturing and electronics.

Source: El Financiero

Manufacturing sector assessing clean energies investment

The Mexican Maquiladora and Export Industry Association in Tijuana (INDEX), affirms that there are ongoing panel discussion sessions with members and representatives of this sector in general, to find out how much money must be invested in clean energies. Luis Manuel Hernandez, INDEX President, weighed in that enterprises are legally bound to use this type of energy, at least 5% must be energy which generates little pollution. This will trigger considerable investment from maquilas, depending on their specialty, each factory will select its most suitable technologies. Mr. Hernandez assured that a 100% usage of energies such as solar, and gas, which is questionable from his point of view, can be accomplished in Baja California, besides having the opportunity to take advantage of wind power.

Source: El Sol de Tijuana

Queretaro anounces Hayakawa's new set up

Francisco Dominguez Servien, Governor of Queretaro, announced during his Japan work tour, the new set up of the Hayakawa Company, with a capital investment valued at US$2.3 million and the creation of 300 jobs. This plant will assemble cables and harnesses and it will start operations at Parque Via Verte in February 2017. Dominguez Servien also met with representatives from Hitachi Automotive, with the objective of getting to know about the expansion project for this Company's plant in Queretaro, which is established since 2014 at Parque Industrial Queretaro, with a US$110 million capital investment and upholding 700 jobs. Hitachi makes, commercializes and sells in Mexico, components for auto motion that contribute to efficiency in fuel usage, while improving engine's performance, as well as tire functionality.

Source: El Financiero

Bringing forward Ensenada's industrialization

The Maquiladora Industry of Tijuana and the Council of Economic Development in Ensenada, subscribed a promotion agreement in order to promote the industrialization of this port and consolidating the economic diversification, informed the President of the Association, Luis Manuel Hernandez. "This agreement is looking to offer professional assessment to industrial executives from Ensenada and to continue promoting the arrival of capital investment to generate services supply chain, given the interest some executives are showing to continue investing in Ensenada at this time", he added.

Source: Uni Mexicali

Supply chain, opportunity for the Mexican automotive sector

With the prospected growth in the amount of cars to be produced in Mexico, 5 million of units, the auto part industry, especially companies of Mexican origin, have an area of opportunity to grow. This is due to the fact that major automotive brands are becoming established in Mexico, thanks to its geographical location, with connectivity to Asia, Europe and North and South America. According to Alberto Bustamante, Director of Foreign Commerce and Normalization of the National Auto parts Industry (INA), there are currently around 600 Tier 1 companies in Mexico. He reckons that 91% of Tier 1 firms worldwide have headquarters in Mexico, but only 1% of them are 100% Mexican-based companies, which is why this institution is approaching the Federal Government to support national companies and help them take advantage in this area of opportunity.

Source: T21

More companies arriving to Guanajuato, the Industrial Park Leon-Bajio starts its expansion

The City of Leon, Guanajuato, continues attracting companies, generating the expansion of the Industrial Park Leon-Bajio (Pilba), located in the Santa Ana del Conde community, where the construction of the Michelin plant was started recently. Executives are waiting for the authorization to develop a second stage of the premises, where four Japanese automotive suppliers are going to be installed. Ramon Alfaro Gomez, General Director of Municipal Economy, informed that there are 10 companies interested in investing in the Colinas de Leon industrial Park, including Oshkosh and MD Electronics, which are already operating.

Source: El Sol de México

New textile plants open in Mexico

The industrial building for a textile company was recently inaugurated in Teocaltiche, Jalisco, in addition to headquarters for the firm Juegos Divertidos, S.A. de C.V., with a capital investment add-up of US$1.6 million. The textile company invested US$579,000 towards its Teocaltiche premises, as the Company expects to generate 300 new jobs over the next two years. On the other hand, Juegos Divertidos is part of the Corporation "Grupo Fabricas Selectas", with participation in different industrial sectors and a staff of 1,800 employees. The mid-term objective for the textile plants in this corporation is to ultimately produce 1 million garments per year. The expansion to the facilities of the athletic attire manufacturer Loma Lasetex S.A. de C.V., was also inaugurated in the Municipality of San Julian, with an initial investment of US$131,100 and the creation of 60 new jobs, which are expected to escalate to 200.

Source: Fashion Network

Military industry, committed to technological innovation

The military industry in Mexico started its modernization under the leadership of President Enrique PeƱa Nieto, affirms General Genaro Fausto Lozano Espinosa. During the commemoration of the 100 years of the creation of the Military Industry, its General Director pointed out that this is the reason prompting them to increase productivity, consolidating a modern, efficient industry. He also stated that the vision and experience of the military engineers is fundamental for research and development of new projects, such as firearms prototypes, two-seat airplanes for training purposes, remote controllers and machinery applied for production, while looking for competitiveness and continuous improvement, renovating their commitment daily.

Source: Carta de Mexico

Multipap arriving in Queretaro

With an initial investment of US$16.2 million, the firm Multipap will start the operation of its plant in the Municipality of San Juan del Rio, Queretaro, which will produce packaging and cardboard molds, informed executives from the Company. The project includes the creation of 150 direct jobs and 100 indirect jobs upon the start of production, said Luis Carlos Villarreal Saenz, Council President of Grupo Industrial Multipap. The complex stands on an 8,000 square meters surface and has an installed capacity of 50 million pieces. Besides, the Company prospects to have an expansion over the next four years, with a total investment reaching US$97.2 million, and the creation of 800 direct jobs and 600 indirect jobs. Multipap Modelado is a manufacturing company of molded paper pulp products to be used as containers of direct packaging in order to preserve the integrity of the merchandise during handling, transport, storage, distribution and commercialization. The company serves the agro-industrial, poultry, automotive, electronics and medical and hospital devices markets.

Source: El Financiero

SolarCity plots US$1 billion investment in Mexico operations

The Mexican unit of SolarCity expects to invest US$1 billion over the next 5 years, said David Arelle, President of the Company's operations. He added that its plans will depend on whether the government puts new limits on net metering, but the company expects to add 2,000 new employees if the situation remains stable. He added that across the rooftop solar sector, SolarCity expects investment in Mexico could reach $3 billion by 2021. By 2020, SolarCity projects Mexico's installed solar PV capacity could reach almost 7,700 MW (DC), with annual installations of 2,000 MW. Currently there are about 900 MW of installed solar PV capacity, the firm believes. Mexico, the United States and Canada have jointly committed to increase their carbon-free resources and last week Mexico indicated it would ratify the United Nations Paris climate accord.

Source: Utility Dive

General Motors pushes forward with Mexican investments

General Motors is pushing ahead with its extensive investments in Mexico. GM is investing US$800 million into its small car lineup and with some of those funds, will retool its facility in Mexico's San Luis Potosi state. The Detroit News reports that this facility, as well as another in Mexico, will begin building the Chevrolet Equinox next year, alongside the company's factory in Canada. Whereas Ford has publicized its recent Mexican investments, General Motors has remained quiet this year and according to Mario Chacon, the head of global business promotion at Mexico's foreign investment agency, there's a good reason for that: "Big American companies are being cautious, they don't want to have issues with the presidential candidates. Companies don't halt their investment decisions for political reasons, they simply do it quietly"

Source: Carscoops

Yucatan improves its manufacturing sector

The export manufacturing sector in Yucatan has a proven development of 13.9% and counting, underscored Alberto Berron Bolio, national counselor for the Mexican Maquiladora and Export Industry Association (INDEX). This is due to the fact that over 90% of plants have increased their production and a part of the INDEX Yucatan's associates has had to buy new industrial plants, or has started working with the capacity that was previously idle, in order to satisfy the demand for products. Berron Bolio explained that the average national growth in this activity is under 6%. In regards to logistics, the infrastructure in Puerto Progreso has grown stronger, as well as the rehabilitation of the railroads that run to and from Central Mexico, and the opening of new air transport routes.

Source: Diario de Yucatan

Aero cluster looking to attract foreign SMEs

The attraction of SMEs into the production chain for the aeronautic industry, is one of the objectives and challenges the State of Queretaro is now facing. The President of Queretaro's Aerocluster, Claude Gobenceaux, invited members to add participation from both national and foreign SMEs, in order to attract FDI and integrate an effective production chain in the State. It is feasible to attract companies from aerospace-leading countries, added the executive, such as the U.S., Canada, France, Germany, England and Spain. Tier 2 companies are arriving in the State to add up to the development in this industry, rendering growth of the aeronautic sector in the State. Gobenceaux also said that the cluster is looking to develop supply chain in the State, integrating Mexican firms, although it is a long process, which demands injection of financial and human capital.

Source: El Economista