Maquila Portal - Weekly Bulletin

Mexico Manufacturing Industry Information Center.


Bulletin 784- Friday, December 2, 2016

Bendix expands its Coahuila production

The firm Bendix, producer of driving control modules (DCM), allotted US$4.6 million to expand its manufacture lines at its plant in Acuña, Coahuila. This, with the objective of increasing its capacity in order to make 60,000 units a year, which shall be installed in heavy vehicles. The modules will satisfy the demand from Navistar, that is going to use them in class 8 trucks, as well as military vehicles. John Kamer, Vice President of Bendix, comments that this re-structuration and investment represents the next step to drive the module production business forward, as it strengthens the commercial relation with Navistar, who will benefit, too, from the proximity of the factories, by establishing the "just in time" model for its deliveries.


Multinational Barnes Aerospace opens plant in Mexicali

On June 7, 2016, at a plant opening ceremony, IVEMSA, announced their agreement with Barnes Aerospace to supply comprehensive shelter services for their new facility in Mexicali. Barnes, a leading international industrial and aerospace manufacturer and service provider was motivated, in part, to establish operations in Mexico to tighten the supply chain of a client, UTC Aerospace Systems. The new plant will focus on the manufacture of structural components and parts for turbine engines utilizing titanium, aluminum, and aerospace alloys, and add up to 50 specialized high-tech jobs to the region, with a plan to add up to 50 more positions by 2018. The opening ceremony was attended by a number of business and government officials including the head of the Ministry of Economic Development (Sedeco), Carlos Bonfante Olache, who reported that the Barnes investment will be US$8 million, implemented in several phases.

Source: Generis

Mexico, important supplier for Boeing in Latin America

Mexico has become the largest supplier for Boeing in all of Latin America, as well as one of its 10 major manufacturing centers globally. Boeing and its supply chain spend roughly US$1 billion yearly with Mexican aerospace manufacturers, with over 20 companies of the sector contracted directly, investing over US$370 million in components production and assembly for the Dreamliner and the 777 models. One example is the Propeller and Spare Parts Program, which includes cable harness, optical fiber, isolation, manufacture of turbines and engine covers.

Source: En el aire

Ford to relocate Focus production to Mexico

The Executive President of Ford Motor Co, Mark Fields, said that this automotive house is moving forward with its plans to relocate to Mexico the production of small vehicles, such as Ford Focus, from Michigan, underscoring that a space should be opened to assign two very important products for construction in its U.S. factory. He also added that this shift in location will not create any impact in employment.


Volkswagen joins the Central Zone Automotive Cluster

Volkswagen Mexico is now part of the new Automotive Cluster Central Region, while Audi is soon to confirm its participation in this initiative, informed the General Director of the new Cluster, Jaime E. Gonzalez Villarreal. This Cluster has the support of the Puebla and Tlaxcala Government offices. The final idea behind this initiative, is to have it translated into specific concrete projects to cover the needs of the region. On the other hand, Manuel Montoya Ortega, General Director of the CLAUT, applauds the creation of this new cluster and affirms: "We were needing a more formal cluster here in Puebla to be able to communicate (…) I believe it is important, because there are issues that involve everyone and hence everyone's great task: to increase national contents".

Source: Vanguardia Industrial

Toyota sets the first stone of its Guanajuato plant

Toyota set the first stone for its plant in Apaseo el Grande, Guanajuato, which will be built on lands measuring over 600 hectares, and represents an investment of over US$1 billion. The President of Mexico's National Auto part Industry (INA), Oscar Albin, informed that this company shall make supply chain purchases equivalent to US$150 million over the next two years, to benefit directly the Tier 1 suppliers coming along with the Company, with the possibility to demand products and services from local providers. Besides, the Bajio region generates 25% of the total auto part production in Mexico, and 50% of the production in the Northern region. The total national production is equivalent to US$82 billion.

Source: El Financiero

Mexico must approach Canada: Jeffrey Davidow

According to Jeffrey Davidow, ex ambassador of the U.S. in Mexico, there seems to be a complicated scene for Mexico, which is why this is the ideal time to approach other partners from the NAFTA, such as Canada. "The problems for Mexico will not be that big, but they are important. Mexico must not rush into negotiation offers. There is no reason for either the Mexican Government or the private sector to present any offers. Mexico should remain cautious but firm. We are on the right side, when we talk about commerce", said Mr. Davidow. He also added that, if the NAFTA is re-negotiated or if the U.S. steps out, both Countries would be affected in their commercial relations, as there are currently around 57,000 companies doing business with Mexico.

Source: Expansion

Queretaro investing US$7.5 million to expand Aerospace Park

The expansion of the aerospace industrial park was one of the main topics discussed during the reunion of the Governor of Queretaro, Francisco Dominguez Servien, with the Ministry of Economy, Ildefonso Guajardo. Besides, they mentioned that the Queretaro Aerospace Park shall grow its lands with 80 additional hectares, property of the State Government, by 2017, as it is completely saturated now and has no more capacity. The expansion will have an investment from the State Government, valued at US$7.5 million, plus another portion from the Federal Government.

Source: Uncategorised

Mexico to Make Engine Components to Dominate Aviation

The orders list is getting too long for the new generation of engines. So Safran is planning a third plant in collaboration with Albany. The LEAP engine has been requested (or intended orders expressed) for 11,500 units, and Mexico will play a central role in its production. Daniel Parfait, Director General of Safran México, explained "Mexico will be manufacturing key components of an engine that will dominate aviation in the near future." Both GE and Safran Aircraft Engines added manufacturing capabilities at sites throughout the U.S. and France. But an investment of US$74 million between the two companies will see Mexican workers creating fan blades with an innovative technology: 3-D woven RTM (Resin Transfer Molding) carbon fiber composite. Production is set for 2017 and will create 500 new jobs on site. These Safran recruits will make an average of 20,000 LEAP engine fan blades per year once production is up to speed, estimated for 2021.

Source: Uncategorised

Sonora-Arizona US$700 million investment by Lucid Motors formalized

The "Sonora-Arizona Mega region" has formalized an investment worth US$700 million from the automotive firm Lucid Motors, that is set to develop a plant in Arizona to produce its luxury electronic car, with participation of the auto parts suppliers network from the State of Sonora. This investment shall create nearly 2,000 direct jobs in Arizona and it will contract provider's services from the Sonora automotive cluster, where more than 60 specialized companies make all type of products to assemble vehicles. Construction will start in 2017 and vehicle assembly is scheduled for 2018. The project is expected to be completed by 2022.

Source: El Financiero

Bose announces project to expand operations in Baja California

Electronics specialty company Bose, announced a project to expand its operations by 15%, thus transferring product design functions and equipment to its plant in Tijuana, Baja California. Bose currently generates 1,900 jobs and it has recorded growth rates over 40% in the last 5 years, which gives a favorable prospect for new projects. Bose is now operating in 24 countries, maintaining 10,000 jobs globally. Some of its automotive clients are: Porsche, Audi, General Motors, Nissan, Mazda, Renault.

Source: Siglo 21

BOSE to expand Tijuana plant

Executives from the BOSE plant in Tijuana, announced a project to expand its operations by 15%. They remarked their interest in making the most of the capacities of the Port of Ensenada (a certified Green Port) to receive their materials, due to the customs procedure which permits to release the cargo with no delay at the border cross, and its capacity to handle containers of 20 feet and up to 20 tons, as well as containers of 40 feet and up to 23 tons. BOSE currently maintains 1,900 jobs and has grown over 40% during the last 5 years. Some of its world class automotive clients are: Porsche, Audi, General Motors, Nissan, Mazda and Renault.


Cadimex invests in Juarez City

Jorge Pedrozo Escobedo, General Manager for Cadimex, a subsidiary of MGI Coutier, said that there will be a 50,000 square feet expansion to their plant's surface next year, to accommodate new equipment which shall be of use to assemble automotive hoses that are currently produced in Michigan. Mr. Pedrozo explained that this product arrives in Juarez already assembled, only to have other components added here. Once this expansion is formalized, the complete product will be made here. Pedrozo Escobedo stated that the equipment they expect, includes plastic molding machines, technology which does not require additional staff, but that will serve to manufacture vacuum exhaust hoses and brake lines. Once the operation is completed, the Company will become the main provider of air exhaust vacuum assemblies for Ford, and it will soon start supplying to BMW.

Source: El Diario