Maquila Portal - Weekly Bulletin

Mexico Manufacturing Industry Information Center.


Bulletin 780- Friday, November 4, 2016

Industrial areas in Coahuila under expansion

The number of industrial zones in Coahuila has increased during the first half of the year, according to data from the consulting firm CBRE. The Arteaga corridor had the greatest demand of these spaces, with almost 35,000 Class A square meters commercialized, mainly for automotive companies. Out of the 55,000 square meters commercialized, 57.9% were for lease and 42.1% for custom-made buildings, outperforming the first trimester records of over 8,000 square meters. Over 97,000 square meters were developed in Saltillo, distributed on expansions to existing, custom-made buildings and speculative Class A developments, explained CBRE.

Source: La Capital

Japanese steel now in Guanajuato

The Japanese company Kobelco CH Wire, inaugurated its steel cable production plant, to make cold-forged automobile components, with a capital investment valued at US$33 million, located in Guanajuato Puerto Interior. Kobelco is a partnership between 4 Japanese companies, 1 from Mexico and 1 from the U.S. The President of Shinsho Japan, Ikuhiro Yamaguchi, underscores that this plant will be devoted to serve clients from the Bajio automotive cluster. Miguel Marquez Marquez, Guanajuato Governor, on the other hand, ratified to company executives that the right conditions for success are set, to cater to the great market of the auto parts sector supply chain.


Manufacturing industry in Chihuahua will close 2016 with 5,000 new jobs

The export manufacturing sector in Chihuahua is expected to close the year with 5,000 new jobs, informed Index's Director, Cesar de la Garza Licon. He explained that these figures are a response to the expansion in operations that several plants around town are experiencing, with expectations to continue this trend into 2017, as the arrival of new investment projects is expected during the first trimester. Another positive aspect, he considered, is that the employee turnover rate is kept at 4%, and the sector is not under-staffed. The export manufacturing industry currently maintains 60,600 jobs.

Source: Omnia

Zihuatanejo project worth US$300 million

Florida-based real estate company - The Related Group, has announced a US$300 million development for the Punta Garrobo area of the resort town of Zihuatanejo. Jorge Pérez, CEO of The Related Group, said his company will build at least 600 condominiums, 100 homes and two boutique hotels on an 80-hectare parcel of land. The project will be environmentally sustainable in accordance with regulations, he said. Hector Astudillo, Governor of Guerrero State, also announced an additional investment of close to US$2.7 million, for the second stage of the road connecting the Punta Garrobo area to the airport at Zihuatanejo.

Source: Mexico News Network

Jalisco exceeds export goal

Jalisco contributed a 12.81% of total national exports, a record rate which was reached last July, as it surpassed the goal prospected for year 2018 in the Development Plan for the State (PED). The Government of the State of Jalisco prospected participating with 11.38% of total exports in Mexico within two years. Jalisco has increased its participation in national exports since the year 2011, with technology related products as the main commodities sold. Jalisco contributed a 10.28% of exports during 2011, the next year it was 10.84% and by 2013 there was a slight drop, setting the rate at 10.68%. It rebounded in 2014 and reached 10.97% and counting, up to an 11.76% rate in exports participation, to close last year.

Source: Portum

Nissan and Daimler investing over US$3 billion

With the inauguration of the Nissan Aguascalientes 2 plant back in 2013 and the upcoming opening of Cooperation Manufacturing Plant Aguascalientes (COMPAS) in 2017 and Mercedes-Benz in 2018, the capital invested by Nissan adds up to roughly US$3 billion in Aguascalientes. Hitoshi Kawaguchi Senior Vice President of Nissan Motor Company Limited, and Miyuki Takahashi, General Manager of Government Affairs for the same Corporation, confirmed the commitment of the Corporation to increase its presence in Aguascalientes.


Würth Electronik under expansion in the Castro del Rio Industrial Park

Guanajuato's Governor, Miguel Marquez Marquez, inaugurated the expansion of the headquarters of the German firm Würth Electronik Mexico, at the Industrial Park Castro del Rio, with a US$6 million investment and the creation of 150 new jobs. The Governor commented that Würth Electronik cuenta owns 400 plants all over the world, generating over 60,000 jobs. Thomas Storandt, Director de Würth Electronik Mexico, remarks that the company is committed with sustainability, ecology and society. This is an industrial class enterprise, with the highest technology to produce. In addition, the staff working here has the highest standards of quality and is looking for personal growth.

Source: El Heraldo Leon

Toyota invests US$150 billion in Baja California

Toyota announced an investment project valued at approximately US$150 billion, for its automotive plant located in Tijuana, Baja California. The President of the Company in Mexico, Mike Bafan, said that this investment is meant to increase its annual production from 105,000 to 165,000 units of Tacoma, which would in turn, position this as a factory with the same productive capacity as the Texas plant in the U.S. This project represents the creation of new jobs, weighed in Francisco Vega de Lamadrid, Governor of Baja California; in addition, he disclosed that the State has a plan to contract more services from local suppliers, to reinforce the economy in this sector. Governor Vega explained that part of the negotiations to formalize this expansion, were related to an investment worth US$26 million for the Tijuana-Tecate Railway by 2017, as it is going to be one of the ways for transport which shall help the Company to move its products and raw materials.

Source: El Economista

Reforms attract Canadian investment

Investment in Mexico from Canada will maintain a growing trend within the upcoming years, thanks to the structural reforms in Mexico, new ventures of Canadian capital and a greater internationalization in corporations, estimated Joel Enriquez, ProMexico counselor in Montreal. Canadian companies have contributed FDI worth US$26.6 billion to the Mexican economy from 1999 up to June 2016 thus placing Canada as the country with the largest investment rates, behind the U.S., Spain and Holland. The Quebec Deposit and Investment Fund (QDIF), has investment in Mexico valued at US$1.5 billion in infrastructure, with the creation of CKD (certificates of capital for development) with pension funds, a building under construction in Santa Fe, with its subsidiary Ivanhoe Cambridge and the purchase of four road projects in partnership with ICA.

Source: El Economista

Energy and automotive, areas of opportunity in San Luis Potosi

Erik Hansen, Vice President of Sales and Marketing of KCS (Kansas City Southern), underscores there are plenty of growth opportunities in San Luis Potosi, thanks to the expansion of the automotive industry in the State, plus the opportunities brought in by the Energy Reform to manage railroad fuels. The plan is to introduce 300 extra carts to serve to the State's supply chain, reasserting the Company's readiness to work according to the growth rates that have been prospected by 2020 in the Mexican automotive industry. In the meantime, regarding the fuel transportation via railroad, the KCS's head executive underscored that San Luis Potosi is one of the main consumers of these products, hence prompting KCS to make the most of its infrastructure to cover this necessity.

Source: T21

Penske Logistics looking for diversification in Mexico

Penske Logistics, one of the main players in automotive logistics in Mexico, will replicate these services in other industrial sectors, to grow and create diversification in different zones geographic of the Country. Alex Graniewicz, General Director of the Firm in Mexico, affirms that they are planning to invest in engineering and technology para to generate value through efficiency and productivity in the supply chain. The Company has based its logistics activities on the automotive, aerospace and electronics industries in Mexico; nonetheless, their project is now venturing into the consumption, retail and pharmaceutic sectors. Penske Logistics is planning on maxing out on the global trend towards "nearshoring", as many projects are looking to re-enter or move closer to the primary consumer hubs, such as the U.S.

Source: T21

Bosch inaugurates new division in the State of Mexico

Bosch Rexroth, the new division for Action and Control Technologies of the assembler Bosch in Mexico, recently started operations in the State of Mexico. US$10 million were invested in the construction of this factory, which stands on a 14,500 square meters area. The new division will support an 85% increase in production, to satisfy the demand for hydraulic power units, blocks and hydraulic cylinders according to a statement issued by the Company. Bosch informed that nearly 450 jobs will be created over the next few years, in addition to the 3,000 plus new associates it is planning to hire in Mexico in the next three years.

Source: Expansion