Maquila Portal - Weekly Bulletin

Mexico Manufacturing Industry Information Center.


Bulletin 781- Friday, November 11, 2016

Nissan Mexicana to produce over 1 million vehicles in 2021

Nissan Mexicana expects to produce 1 million vehicles by 2021, which signifies a 21.51% growth compared to the 822,948 units produced in 2015. According to Armando Avila, Manufacture Vice President of Nissan Mexicana, this increase will be accomplished by reducing 3 seconds in the production process at the Aguascalientes plants. Nowadays, one vehicle is produced every 37 seconds, it will become one unit every 34 seconds by 2017. As the executive says, that three seconds' difference was gained thanks to improvements in the production process, thus producing 60,000 extra units per year, which will allow the Company to "keep a steady pace towards the high competitiveness levels the market demands".

Source: T21

Mexico records agri-food surplus worth over US$2 billion

Mexico recorded a US$2.1 billion agri-food surplus between January and August 2016 in its commercial balance with the world, resulting from the commercial promotion, opening of markets and the outstanding safeness and health standards of food produced in Mexico, stated The Mexican Ministry of Agriculture, Livestock, Rural Development, Fisheries and Food (SAGARPA). Based on statistics by the Bank of Mexico, the agri-food surplus grew by 66.6%, compared to the same period of 2015. Regarding the agricultural sector, it presents annual growth within its 59% surplus, valued at US$2 billion. On the other hand, the agri-industrial commercial balance had a US$75.2 million, in contrast to US$14.3 million shortage over the same period in 2015. Agri-food exports peaked at US$19 million (4.9%). Agri-industrial exports totaled US$9.74 billion, a 10.6% annual rate increase. The agri-industrial sector reported sales worth US$ 9.43 million, similar to the sale records of 2015. Agri-food exports are expected to reach a US$30 billion net worth by the end of 2016, as well as increasing the surplus in the commercial balance.

Source: MVS

Plant II of ISRI was inaugurated and Fehrer starts operations

The Governor of the State of Coahuila, Ruben Moreira Valdez, presided over the inauguration of the Plant II Isringhausen and start of operations of Fehrer Automotive Mexico, a company dedicated to manufacturing interior auto parts, which is located at the Derramadero Industrial Park, with a capital investment amounting US$12 million, generating 370 jobs. The State has currently exceeded its goal of creating 100,000 jobs, thus reaching a record number of almost 138,000 positions during Governor Moreira Valdez's term in office so far.

Source: Milenio

Mexico's foreign investment peaks at US$120 billion

The head of the Ministry of Economy (SE), Ildefonso Guajardo Villarreal, informed that Mexico has captured foreign investment worth US$120 billion during President Enrique Peña Nieto's term in office so far. Mr. Guajardo stated that since the signing of the NAFTA up until 2012, the average investment had been US$19 billion, a figure that has changed, partly thanks to the structural reforms. He regarded the participation of SMEs as both strategical and fundamental, hence the great importance of the reforms introduced, to establish competitiveness and uniform conditions to participate from global value chains. 50,000 companies have received support through the National Institute of Entrepreneurship to assist with projects for the incorporation to value chains or to improve their information technologies, in order to help the efficiency of the most traditional sectors.

Source: Mundo Ejecutivo

Bosch to invest US$80 million in San Luis Potosi

German Corporation Robert Bosch is planning to develop products in Mexico, and for this purpose, it will invest US$80 million in its San Luis Potosi plant by 2018. This investment is considered the largest in the history of Bosch San Luis Potosi and its objective is to expand the production lines in the plant, adding a logistics center and a development center, and 250 new hire Mexican engineers. The plant is expected to grow its staff to 2,700 members by 2020. Rene Schlegel, President of Robert Bosch Mexico, underscores that the San Luis Potosi plant is the only place in America to produce certain automotive components which require high-level qualifications.

Source: Mundo Ejecutivo

New aerospace and aeronautic cluster in Guanajuato

Globally, the aerospace industry has a US$6 billion growth potential, since 32,000 new airplanes will be required around the world within the next 20 years, and this is the reason why the new cluster is looking to increase the economic dynamics in Guanajuato. The cluster is made up by Grupo Leon, Siasaair, Witzermann, Zumina, A&P Solutions, Precon and Grupo CAC. Guillermo Romero, Minister of Economic Development in Guanajuato and Fabian Gamba, ProMexico Director at Guanajuato, attended the inauguration. It is noted that Mexico is the seventh supplier for this sector in the U.S., and has the Mexican Presidential office as a strategic partner to develop this cluster.


NAICM will be the primary distribution hub in Latin America

Gerardo Ruiz Esparza, head of the Ministry of Communications and Transport (SCT), assured that the New International Airport of Mexico City (NAICM) will be the most important distribution hub in Latin America. Hence, the National Infrastructure Program 2013-2018 by the SCT has the objective of establishing productive and commercial chains through logistics corridors which interconnect the different ways of transportation, assuring the mobility of people and merchandise with more agility, security and at a lower cost. This program has an infrastructure project of 52 highways, 80 roads, two passenger trains, a metro railway, a first-class passenger train and a high speed railway, all of them brand new, as well as a plan to double the port's operational capacity.

Source: El Sol de México

Mexicans making business in aerospace sector

Looking for business opportunities and approach to companies from the aerospace sector, ProMexico participated in Japan Aerospace Show 2016, the most important aerospace show for the industry in Asia, in coordination with Mexico's Embassy in Japan, the Mexican Federation of the Aerospace Industry (FEMIA) and the participation of the State of Queretaro, looking for business opportunities and the means to reach out to companies in this industry. The increase of Japanese companies in Mexico, raises the number of opportunities to diversify the Japanese companies that supply to the automotive industry, which could as well supply to the aerospace industry. On the other hand, Mexican aircraft component exports to Japan have been experiencing exponential growth over the last ten years, shifting from US$0.05 million in 2006 to US$2.98 million in 2015.


Iberdrola to invest US$3 billion for plants in Mexico

Spanish Corporation Iberdrola just stated that it will double its installed capacity in Mexico during the next three years, with a US$3 billion investment to install 10 plants to generate electricity. The President of the Company, Ignacio Sanchez Galan, indicated that never had the Company had so many buildings under construction in one Country, in an effort to contribute to the intense transformation process of power generation. As part of the Iberdrola strategy in Mexico, Sanchez Galan inaugurated the Dulces Nombres II combined cycle central and the electric safety infrastructure municipality of Pesqueria, Nuevo Leon, where US$274 million were invested.

Source: Mundo Ejecutivo

Panasonic Mexicali celebrating 20 years of continuous work

Within the framework of the ceremony for 20 anniversary of Panasonic Industrial Devices Mexicana S.A. de C.V., Francisco Vega de Lamadrid, Baja California Governor, through the Ministry of Work and Social Welfare (STPS) congratulated the Panasonic labor force on being part of a team that is distinguished for aiming for quality in its daily work, while reasserting the compromise to implement work strategies that shall support the development of the industry in Baja California. The Ministry of Work and Social Welfare, Juana Laura Perez, mentions that the labor Panasonic has been carrying out in Mexicali during the last 20 years, has contributed to the economic growth in the State and the human resource development as well, as this organization has a trademark of compromise with the community.

Source: Siglo 21

QSR to add plant in Mexico

Quality Synthetic Rubber Inc. is venturing south of the border.

The unit of Q Holding Co. will establish a manufacturing facility dedicated to producing primarily silicone electrical connector seals and insulators for industrial applications, mainly automotive and aerospace. The 65,000-sq.-ft. plant will be operational on Nov. 15 and is projected to create 135 jobs.

QSR is making an initial capital equipment investment of US$3 million for the first year. The site has room for an additional 65,000 square feet should demand dictate it expand further. President and CEO Randy Ross said that the firm has a large amount of revenue in Mexico that it already has developed, and now is the ideal time to locate manufacturing there to produce close to those customers.

Source: Rubber & Plastics News

Frisa opens a steel plant in Nuevo Leon

Eduardo Garza T. Fernandez, founding member of Frisa Corporation, inaugurated a steel factory that might be able to substitute imports of up to 300,000 tons of steel in its production process. In order to accomplish this, US$150 million were invested in a plant located at the Municipality of Garcia, Nuevo Leon, which will have an installed capacity of 350,000 tons of liquid steel. This steel plant shall produce over 600 different combinations of special grades steel and profiles, which will be used as raw materials to fabricate forge, which is used in several operations from the oil and gas, construction, mining and machining sectors, and industry in general, etc.

Source: El Financiero

Centro Continental now in Queretaro

Queretaro is the host of the second Research and Development Center of the German Firm Continental Automotive, in Mexico. The automotive firm will invest US$33 million over a five year period, with prospects to start operations in the first trimester of 2017, generating 1,100 jobs. This center will be specialized in embedded systems for autonomous vehicles and it is estimated that patents for the industry will be generated in this State. "The arrival of the research and development center into Queretaro, represents a 'before' and 'after' for our automotive sector. It is a milestone in the world of automotive evolution" stated the Governor of Queretaro, Francisco Dominguez Servien.

Source: El Economista