Maquila Portal - Weekly Bulletin

Mexico Manufacturing Industry Information Center.


Bulletin 786- Friday, December 16, 2016

Volkswagen to invest US$1 billion more in Mexico

Volkswagen will invest US$1 billion during 2017, in order to produce the new Tiguan, with a production start up contemplated by March next year, generating 2,000 jobs, informed Thomas Karig Geretch, Vice President of Volkswagen Mexico, in the framework of Mexico's Auto Industry Summit 2016, celebrated recently in Leon, Guanajuato. He comments that the new version, the Tiguan second generation, will be produced at the Puebla plant and in China, to export from Mexico to the whole world. This project will generate 2,000 jobs in Puebla, besides there is going to be an estimated demand for auto parts of roughly US$1 billion annually.

Source: Zocalo Saltillo

SPM Auto Parts opens plant in Nuevo Leon; US$18 million invested

SPM Auto Parts inaugurated its first production center in Nuevo Leon, with a US$18 million investment. This is a Japanese and Korean co-investment by the Asian firms Sunildyfas, Mizuni Tekkosho and Punkang. At the Municipality of Escobedo, SPM will produce cool forged auto parts, fastener bolts and screws for companies such as Kia Mexico, Nissan Mexico, Honda, General Motors and Toyota, among others. The plant has an extension over seven thousand square meters and this is where the product supply for the Latin America and U.S. markets will come from. SPM is a high technology company with over 40 years of experience operating in the global automotive sector.

Source: El Financiero

Wal-Mart invests US$1.3 billion to improve logistics operations in Mexico

Wal-Mart said it will invest US$1.3 billion to strengthen and expand its logistics network in Mexico. "With this, the company will not only be in a better position to supply its more than 2,300 stores in the country, but also help Mexican families save even more money," the company said. "A big portion of this investment will be made within the following three years to build distribution centers and enlarge existing ones, thus creating over 10,000 direct permanent jobs in the country." Guilherme Loureiro, president and chief executive of the company's 71 percent owned joint venture in Mexico, Walmart de México y Centroamerica (Walmex), said the investment will be made throughout Mexico. "This investment will create jobs and benefit various industries, such as construction, transportation, and agricultural and livestock," he said. A Wal-Mart spokeswoman told Reuters the investment in Mexico will not result in any jobs being moved from the United States and is necessary for expansion of the company's Mexican business.

Source: American Shipper

Automotive Sector moving forward in Mexico: BMW

Mexico will maintain important variables, earning a spot as a strategic market for the automotive industry, regarding both manufacture and vehicle sales, even after the uncertainty and the volatile exchange rates after the recent U.S. Presidential election, weighed in Alexander Wehr, General Director of BMW Mexico. He expressed that the dollar exchange rate is going to be an important factor to drive the manufacturing competitiveness in Mexico, although, commercially, it will limit the acquisition power of national clients; even so, the prospect is to close the year with growth rates above the market's average. Regarding the construction of its plant in San Luis Potosi, he said this will be useful to boost the Latin America sales of this German firm, which has gained importance in its global operations, not just for the U.S.

Source: Cluster Industrial

DuPont analyzes installing plant in Mexico

For nearly 60 years, DuPont has been a supplier to major automotive assemblers around the globe. Today, the firm is seeing opportunities to increase sales in Mexico, in the face of new automotive firms arriving. The boom of the automotive industry in Mexico has awaken the interest of this U.S.-BASED firm to make business. 70% of the raw materials the automotive industry needs are currently imported, says Juan Jose Zaragoza, Automotive Industry Development leader for DuPont High Performance Polymers, about the opportunity the increase of companies operating in the country would signify. Not only are nationally assembled vehicles important for DuPont's plans, but also export is. Mexico is the fifth auto parts provider in the world. "We see a really large area of opportunity here", "We never rule out any possibility regarding investment, especially with such a large market participation", assured Mr. Zaragoza, who believes in the opportunities Mexico has to offer and has no doubt that DuPont will maintain a constant analysis of its new manufacturing centers.


Trump's arrival will boost Mexico investment: Merrill Lynch

In one of its prospect reports for 2017, the investment bank Merrill Lynch, underscored that "Mexico might become surprisingly benefited from an increase in U.S.' infrastructure expense". In addition, Mexico "could benefit in relative terms, from a rebound in construction and infrastructure in the U.S.". It readily affirmed that "any upturn in U.S. manufacturing will also be good for Mexico, particularly if Trump's protectionist policies are not as substantial as it is feared". On the other hand, 2017 poses the following risks to Mexican economy: lower oil prices and a deceleration in the national crude oil production. In a different aspect, the disorderly normalization of the U.S. money policy could also affect the stability of Mexican finances, established the report. In contrast, factors that could drive Mexico's economy above the estimates are greater economic growth rates in the U.S. and an increase in crude oil prices.

Source: Mundo Ejecutivo

Davisa grows in San Luis Potosi with 3 industrial parks

Coahuila based corporation Davisa, an industrial park developer, is completing important projects in San Luis Potosi. Zaira Padilla, Industrial and Corporate Sales Director for Davisa, declared that "we are now achieving very important results in San Luis Potosi, with the arrival of assemblers BMW and Ford, which have spurred growth and dynamism". Ms. Padilla comments that they are still working in two major projects, one is 60,000 square meters in size, it is under construction process and is due in 2017, and another one has an extension over 30,000 meters.

Source: Zocalo Saltillo

Bosch to generate 500 jobs in Ciudad Juarez in 2017

During the next year, the auto parts manufacturer Bosch will add at least 500 workers to its Ciudad Juarez operations, which signifies a growth rate of nearly 10%, informed Friedrich Dreier, VP of the Firm in the City. The new employees will have the same location in the current campus, a few meters away from the U.S. border. With these new staff members, the Company is now at its full productive capacity. This expansion will result in a total of 4,500 workers, which is why Mr. Dreier affirms that a new plant might be added by 2018, as the current headquarters will be completely saturated with the current rhythm.

Source: El Diario

Yucatan industrial park to be built soon

San Francisco de Asis Group is going to build the Industrial Center of Yucatan (CIDY), on a 500 hectares area in the Municipality of Hunucma. It will have a long term investment valued at US$120 million, featuring a business center with capacity for conventions and massive events, a multimodal transport terminal, cargo movement, customs posts, service zones, restaurants, banks and a hotel, as well as other basic elements enterprises, users, employees and operators need. The process to obtain the necessary permits to start this development is currently underway.


EU looking to increase the presence of its companies in Mexico

The European Union is looking to increase the participation of its member companies in Mexican public contests. Cecilia Malmström, European Commerce Commissionaire, indicated that, after the enforcement of the current EU-Mexico agreement, 16 year ago, it is now necessary to adapt it to a new commercial reality. The propositions Brussels presented to its counterpart are looking to reduce the so-called "unnecessary regulatory barriers" to commerce, as well as "upkeeping the levels of protection to consumers, workers and the environment", according to the statement. In addition to increasing the presence of European companies in public tendering in Mexico, and vice versa, the EU wants to facilitate the commerce of energetic products and raw materials, as well as increasing the cooperation related to food safety and a better protection of products with designations of origin.

Source: NW Noticias

Jeep will manufacture in Mexico its Compass for North America

Jeep, part of the Fiat Chrysler group (FCA), informed that the new Compass model to be sold in the North American market, will be manufactured in Mexico. Likewise, the firm also stated that this model will be made in China and India too, for all of Asia, and in Europe, to be sold within the Continent. Mike Manley, who is in charge of the Jeep production worldwide, declared during the Compass presentation in North America, that the new model is "one of the final pieces" of the brand's reinvention, which is celebrating its 75 anniversary this year. The new Jeep Compass will be available with 17 drive trains (combinations of engine and transmission) to become adapted to the characteristics of each one of the International markets where it is sold.

Source: El Sol de Mxico

Luxury vehicle Infiniti to be manufactured in Aguascalientes

The production of the COMPAS plant, in Aguascalientes, will start off by making a new Infiniti luxury car, in November 2017, which is the reason behind preparing the Renault-Nissan-Daimler alliance, as well as hiring new staff, announced the Ministry of Economic Development, Alberto Aldape Barrios. The State Governor, Martin Orozco Sandoval, says that the staff has begun training in the different production lines, while the first production tests are carried out in the plant, in March 2017. Nissan will be a majorly important corporation for Aguascalientes economy. However, the Governor's instruction is to look for other areas of opportunity so that there will be new columns in the local economy.

Source: Cluster Industrial

EPN underscores Mexico's potential in food production

The agri-food sector elevates Mexico to the 12 spot in the global ranking of food producers, thanks to the support this sector has obtained in later years, affirms President Enrique Peña Nieto. He underscored that for the first time in 20 years, there was a surplus balance, as there were more food exports from Mexico than imports, and the US$30 billion agri-food sales income exceeds that from the oil or tourism sectors, and even from remittances. The federal head of state also recognized that, with actions such as the automation of fields, this Country will succeed in climbing up from the 12 spot as food producer before the end of his presidential term; "Mexico will have even more surplus", he said.

Source: Omnia