Maquila Portal - Weekly Bulletin

Mexico Manufacturing Industry Information Center.


Bulletin 789- Friday, January 13, 2017

Ford supplier confirms construction in Guanajuato

Even after the announcement of the cancellation of the Ford plant in San Luis Potosi, the Ford transmissions plant which is under construction at the Castro del Rio industrial park will not be canceled and it will open its production this year, stated Fernando Vera Noble, Director of Economic Development in Irapuato, Guanajuato. Mr. Vera Noble indicated that there is not any cancellation announcement so far, regarding the Irapuato facilities, which are almost completed and that has plans to start hiring during the first semester this year.


Nissan confirms its plans for Aguascalientes are still standing

Nissan Mexico confirmed that its plans for premium vehicle production at its Compas plant in Aguascalientes remain unchanged. Therefore, the manufacture of Infiniti vehicles will start in 2017, and Mercedes Benz's will start in 2018. Compas (Cooperation Manufacturing Plant Aguascalientes) is the manufacturing complex of the Daimler and Renault-Nissan alliance, with total capacity of its plant for 250,000 units. Nissan decided in October that its premium Infiniti brand is not going to use MFA2, an enhanced auto platform by Daimler which the two Companies founded together. Daimler and Nissan follow joint programs only when they benefit both parties, underscored the two companies in their statements.

Source: La Jornada

Toyota, Honda say no immediate plans to curb Mexico production

The presidents of Toyota Motor and Honda Motor said they have no immediate plans to curb production in Mexico, preferring to wait until after Donald Trump's inauguration as U.S. President this month, before deciding whether to make any changes. "We will consider our option as we see what policies the incoming president adopts," Toyota President Akio Toyoda said, when asked whether his company was considering any changes to a production plant the automaker is building in Mexico. Takahiro Hachigo, Honda's president and CEO, for his part said: "We produce cars in Mexico for markets including North America and Europe and we have no immediate plan to change this. Toyota plans to raise output to around 160,000 units at its plant in Baja California, by 2018. It is also building a plant in Guanajuato city which will have an annual capacity of 200,000 when it comes online in 2019.

Source: CNBC

KIA Motors reacts to Ford's splitting

After Ford Motor Company had announced the cancellation of the Company's plans in Mexico, KIA Motors reacted by presenting a new strategy. "We know that true quality resides in Mexico", is one of the Brand's responses in its official Facebook account. KIA sent a clear message that its Mexico investment is going to continue and increase. The firm reported sales growth rates of 110.4% during last December, compared to the prior month of November, with 6,030 units sold. It actually surpassed its estimated sales for 2016, with 58,112 vehicles on the market and it ended in the top eighth position of vehicles commercialized in Mexico.

Source: Vanguardia

Mexican cars: favorite in the U.S., Canada and Germany during 2016

Mexico exported 2,551,623 vehicles between January and November 2016, out of which 89.9% had three countries as their main destination: the U.S., Canada and Germany. According to the Mexican Association of the Automotive Industry (AMIA), this figures are very similar to the export records of November 2015, which signifies recovery in the sector. The most exported vehicle models in 2016 were: Ford Fusion, Dodge RAM 2500 and Chevrolet Silverado 2500 to the U.S.; GMC Sierra, RAM 2500 and Volkswagen Jetta, were the most popular in Canada. Whereas Volkswagen Jetta, Volkswagen Beetle and Mazda 3 Hatchback were the vehicles most exported to Germany.

Source: El Financiero

DuPont supply chain growing in the automotive industry

DuPont is going to close the year with automotive industry material sales showing a 9% growth rate, especially sales to auto parts manufacturers, who consume its coatings and high performance polymers, said Juan Jose Zaragoza, leader of the automotive division of the company. In addition, the plants that opened during 2016 are boosting the auto parts production in Mexico. DuPont's best-selling material for the automotive sector is nylon, which is used to manufacture different components, such as the case for the radiator fan, engine covers, among others. DuPont started this year with the commercialization of an elastomer called Vamac, which offers more resistance to fluids like oil, gases, chemical products and high temperatures. Mr. Zaragoza estimates there will be growth in the automotive and auto parts production during 2017, as there are currently over 1,700 components manufacturers and new providers keep coming.

Source: El Universal

Tokyo Roki arrives in Guanajuato

Japanese Company Tokyo Roki, installed its plant in Guanajuato where catalyzers for the automotive industry will be produced, with Mazda expected to be its main client. The estimated annual average production of this Japanese Company reaches up to one million catalyzers, for both diesel and gasoline engines, for the automotive sector in Mexico, generating 60 direct jobs. Guillermo Romero Pacheco, head of the Ministry of Sustainable Economic Development, remarked that investment worth US$9.8 billion, distributed on 206 projects, both national and foreign has been captured during the current State administration. From this total, 144 projects are from the automotive-auto parts sector, with an investment of US$7.72 billion and 55,600 jobs created.

Source: Somos Industria

Jalisco looking to consolidate FDI projects

Entrepreneurs and State authorities weighed in on Donald Trump's arrival to the U.S. Presidency, saying that it will not trigger any investment project cancellations for Jalisco. The Governor Aristoteles Sandoval will head a commercial mission to Silicon Valley, California, next February, as he reasserts that corporations with presence in Jalisco are interested in maintaining their projects in the State. On the other hand, Daniel Curiel, coordinator of the Jalisco Council of Industrial Chambers (CCIJ), commented that these companies from the U.S. have prospects of injecting US$260 million in Jalisco during 2017, just for the high-tech sector, disregarding the possibility of having these projects canceled.

Source: El Economista

Mexican ports, considered among the Seven Wonders of the Logistics World

The Seven Wonders of the Logistics World will be disclosed this upcoming month of February, with three Mexican ports among the 16 projects presented, which were considered by professionals of the logistics sector, due to their condition as creations or constructions that provide a competitive advantage, making this sector the most efficient. The Port of Lazaro Cardenas, the Port of Veracruz and the Port of Altamira, in Mexico, compete against the Port of Rashid, in Dubai, the Port of Shenzhen, in China and the Port of Singapur. The voting will be held during the month of January, through the website The projects list includes the container, the pallet, the bar code, the forklift and the RFID (Radio-frequency Identification), the railroad, autonomous vehicles and drones, and the Panama Channel.

Source: El Sol de México

Investment in Queretaro had 75% growth during 2016

36 investment projects were formalized during 2016 in Queretaro, valued at US$850 million, that is, an annual increase of 75%, informed the Secretary of Sustainable Development in the State, Marco Antonio del Prete Tercero. These projects represent the creation of nearly 13,000 jobs. The officer stated that there are 73 investment projects in the portfolio, equivalent to roughly US$650 million and 14,265 labor positions. In this manner Queretaro maintains important growth levels, with prospects of development rates between 5% and 6% for the local economy during the present year.

Source: El Financiero

Triple helix work project in Baja California

The Engineering Institute of the Autonomous University in Baja California (UABC), Skyworks Solutions corporation and the National Council of Science and Technology (Conacyt) are working in the creation of a new model of collaboration for research and innovation under the triple helix scheme (academia, enterprise and government). With this, two specialized laboratories with nanotechnology have been created, to produce industrial innovations for the electronics, aerospace and medical sectors. In the case of Skyworks Solutions Corporation, there are two laboratories implemented, teamed up with UABC: the Nanotechnology Laboratory, Semiconductors and Microelectronics and the Laboratory of Advanced Microscopy.

Source: Modern Machine Shop

Grupo Saltillo purchased an auto part company

Grupo Industrial Saltillo (GIS) recently completed the acquisition of Grupo Infun, a company dedicated to design and make pieces for the automotive industry, a transaction worth US$295.5 million, plus the absorption of a maximum net debt amount of USS$42.2 million. Grupo Infun is contributing talent, experience and know-how to boost GIS's capacities; it has iron smelting operations in Spain, Italy and China, and iron machining operations in Spain and China. With this, the integration of Grupo Infun diversifies and complements the talent of this firm, its product portfolio, geographical presence and strong customer base, while generating synergy in engineering and designing to accelerate the expansion of GIS's auto parts sector.

Source: El Economista

Raspberry production increasing in Jalisco

Jalisco is becoming the consolidated national raspberry production leader. The State contributed with over 38,000 tons from January to October 2016, with production going up by 67%. The Ministry of Agriculture informs that Mexico had 111% growth, compared to the prior year, which strengthens its position as the fifth producer worldwide of this crop. The raspberry production takes place in eight different States in Mexico, but 98% of this product comes from Jalisco, Baja California and Michoacan.

Source: Notisistema