Maquila Portal - Weekly Bulletin

Mexico Manufacturing Industry Information Center.


Bulletin 783- Friday, November 25, 2016

Dutch pharmaceutical firm now in Jalisco

The Holland-based pharmaceutical firm Synthon, laid the first stone to its plant to produce generic medication for oncologic and neurological treatments, in the Municipality of Tlajomulco de Zuñiga, Jalisco, with a US$20 million investment. The inauguration of the factory is expected by the third trimester of 2018, generating 300 direct jobs and 400 indirect jobs, stated Claudio Castro Villavicencio, General Director of Synthon Mexico. These new headquarters will have capacity to produce 200 million tablets and 200 million capsules yearly, with a total production capacity of 15 million "blisters", that is, plastic packaging for capsules and pills, and a million medicine bottles per year. Mr. Castro added that the company is targeting the Mexican market, but there are further plans for North and Central America, too.

Source: El Economista

Eaton expands two of its Juarez plants

Peter Lugo, Vice President and General Manager of the Bussmann division, informed that Eaton will expand operations in two out of its three Juarez, Chihuahua plants during late 2016 and early 2017, to produce fuses and transformers while adding new products to its lines. Regarding fuses, he mentions that a new line for electric vehicles will be introduced, with smaller components which protect the system of these vehicles. The building dedicated to transformers, on the other hand, is expanding its operations to start manufacturing electric panels at the beginning of next year, which will go to the industrial and commercial sectors.

Source: El Diario

New Aerospace plant is coming to Sonora

The Government of Sonora informed that Shimtech, a company specialized in the aerospace sector, announced the establishment of a new industrial plant in Hermosillo, with an investment of US$15 million and 200 new-hire engineers. The meeting between Howard Kimberley, CEO of the Company and Claudia Pavlovich, State Governor, was held in the Palace of Government, where the formal decision was disclosed. On the other hand, Jorge Vidal Ahumada, Minister of Economy in the State, said that this investment plan will bring about innovative technologies which will change the future of the aerospace industry in Mexico.

Source: El Economista

Rockwell Collins to buy B/E Aerospace, a Tucson employer, for US$6.4 billion

Florida-based B/E Aerospace has agreed to be acquired by aviation communications and electronics supplier Rockwell Collins Inc. in a deal worth US$6.4 billion. B/E officials said its headquarters operation in Wellington, Florida, would be eliminated as part of the companies' combination, but the impact on Tucson and other U.S. operations is unclear. According to regulatory filings, B/E had 10,057 employees and 25 main operating facilities worldwide at the end of 2015, including 16 manufacturing plants in the U.S. and facilities in the Philippines, the United Kingdom, Germany and Nogales, Mexico. Rockwell Collins Chief Executive Kelly Ortberg said the deal would combine Rockwell's expertise in cabin electronics and information management systems with B/E Aerospace's work on cabin products. Rockwell said the deal will save about US$160 million in overlapping spending and boost earnings per share within a year. The merged company will have nearly 30,000 employees and about US$8 billion in annual revenue. After the deal closes, two B/E Aerospace board members will join Rockwell's board. B/E Aerospace Chief Executive Werner Lieberherr will also be named executive vice president and chief operating officer of Rockwell's new aircraft interior systems section, the companies said.


TAR plans US$10 million investment in Queretaro

Transportes Aereos Regionales (TAR) Corporation will invest nearly US$10 million over the next few months, which shall be destined to infrastructure and training projects in Queretaro. The airline will install a staff qualification center in September 2017, which will be located within the premises of Queretaro's Intercontinental Airport (AIQ), with a US$4.5 million investment, stated the Minister of Sustainable Economic Development of the State, Marco Antonio Del Prete Tercero. On the other hand, Rodrigo Vazquez Colmenares, TAR's General Director, mentions that the company is considering to build a hangar, with an investment between US$5 and US$7 million.

Source: El Financiero

Acciona will invest US$400 million in solar plant in Sonora

The Spanish firm Acciona, in partnership with the Mexican firm Tuto Energy, will become a subsidiary of Biofields group to build the first solar energy plant in Mexico, with investment valued at US$400 million. The central shall be located 6 kilometers away from Puerto Libertad, Sonora and it shall start operations in 2019. The arrival of this investment into the Altar dessert region, is a milestone for the clean energy industry, as it shall motivate other companies to arrive to Sonora and invest in the sustainable energy sector; despite the common talk about the potential and light exposure the State has, one thing is to have potential and a very different thing is to take advantage of it, underscored the Minister of Economy, Jorge Vidal Ahumada.

Source: El Financiero

First automotive supplier from Israel, arriving to San Luis Potosi

Raphael Halamish, CEO of Foamotive International (a company with Israeli capital), informed that the Company will invest US$3 million in its production plant Foamotive Mexico, in San Luis Potosi. The firm's specialty is the production of polystyrene parts (with Tier 1 status for OEM automobiles worldwide) and tri-dimensional pieces of PE foam with exact fit to its corresponding components. 20 workers will be hired in its first stage, with prospects of increasing this number to 60. Among its main clients, there is Grupo Volkswagen with its brands: Audi, Porsche and SEAT, providing them "just in time".


Toyota increased its production in Baja California

Toyota Motor Manufacturing plant Tijuana (TMMBC), announced an increase in production, with a US$150 million investment, which will shift numbers from 105,000 units to 160,000 pick ups produced annually. Mike Bafan, President of Toyota Mexico, confirms that 400 new jobs are being created, thus consolidating a staff made up of 1,200 collaborators. In this regard, he remarks the growth and trajectory this Company has had in this region over the last 12 years, when initially, 30,000 Tacoma vehicles were produced each year. With this growth, Toyota is once again joining the major leagues, to satisfy the demand for Tacomas, which had been unprecedented in the Tijuana and Texas plants.

Source: Siglo 21

Unlikely for the automotive sector to be impacted by changes in the U.S.

The automotive sector will not be affected by Donald Trump stepping into the U.S. presidency, affirms the President of Grupo Alfa, Alvaro Fernandez Garza, who denies being worried about the electoral results. "The committed investment already existing in the sector, are telling us that they will keep growing, besides there is a relation between assemblers and providers short of a strategic alliance and which would be impossible to break", he comments. There is also compromise to invest on several projects in order to reach a 5 million units production by 2020, twice as much as the 2010 record. The businessman encourages firms to be prudent, patient and cautious, because there is going to be increased volatility until the moment the new U.S. presidential office defines its policies.

Source: Mundo Ejecutivo

Mexico and Panama driving regional integration, aeronautics and safety

Mexico and Panama have decided to stay united and in favor of the regional integration, pointed out President Enrique Peña Nieto, together with the President of Panama, Juan Carlos Varela Rodriguez. During a media address, the heads of State agreed to review the mechanisms for customs, fiscal, civil aviation and safety cooperation, and negotiations were started, with the purpose of reaching an agreement on cooperation and mutual assistance in customs affairs. Mexico is the third commercial partner for Panama in Latin America and the Caribbean, sixth worldwide, and it is the eighth user of the Panama channel, turning it into a major logistics in the region of the Americas. Besides, there is important presence of Mexican companies in this Country from Central America, with investment worth over US$2.5 billion.

Source: Revista Republica

Toyota in Queretaro

Ildefonso Guajardo, Minister of Economy, and Miguel Marquez, Governor of Guanajuato, along with executives from Toyota U.S. and Mexico, presided over the ceremony to lay the first stone for the new plant in Apaseo El Grande, Guanajuato., where the compact vehicle model Corolla will start production in 2018. This is a historic landmark, as the Japanese Firm is going for the third place in Mexico sales within two years, and this story is happening in the context of a new Mexico-US relation, in the face of the arrival of the new President, Donald Trump.

Source: Al Volante

Canadian automotive supplier arriving to Queretaro

Emmanuel Duchesne, CEO of the Canadian Company EXO-S, as well as the CFO, Daniel Denault and the Director of Finance, Administration and Business Development, Francois Ouellet, announced the arrival of this company to Queretaro, with a US$19.5 million investment to install the industrial building which will be located in San Juan del Rio and it will generate 350 jobs. The Company is a supplier of thermoplastics systems molded with injection and blow molding. There were also present during the announcement the General Consul of Mexico in Montreal, Alejandro Estivill; ProMexico's commercial counselor in Montreal, Joel Enriquez and Francisco Dominguez Servien, Queretaro Governor. More details of investment will be disclosed soon.


Kromberg & Schubert sets its first stone in Guanajuato

German firm Kromberg & Schubert recently laid the first stone to its plant at Colinas del Rincon Industrial Park, with Chufani in charge of developing the factory. The investment exceeds US$52 million and over 4,800 jobs shall be created. The new plant will produce electric harnesses for the automotive industry, with a capacity for 2.5 million electric harnesses a year and its main clients are: BMW, VW, Mercedes Benz and Audi. On the other hand, Kromberg & Schubert has three investment projects in Guanajuato valued at US$71.1 million and upholding 6,330 jobs.

Source: El Financiero