Maquila Portal - Weekly Bulletin

Mexico Manufacturing Industry Information Center.


Bulletin 790- Friday, January 20, 2017

Toyota confirms investment plans for the Bajio region

Toyota Mexico does not foresee changes in its regional strategy, reasserting its vision to continue investing and growing in presence. The company informed that the production and employment volumes in the region will not be affected as a result of the new plant in Guanajuato, announced in April 2015, and it was confirmed that as of 2019, Toyota Motor Manufacturing in Guanajuato (TMMGT) will produce the Corolla model, thus generating around 2,000 jobs in the Bajio region. This plant will have capacity to produce 200,000 units a year, with a US$1 billion investment. TMMGT will work using Toyota New Global Architecture (TNGA), an innovative model for manufacture.

Source: Info Transportes

Company from Taiwan starts construction in Jalisco

Taiwan based company Huan Yu Group, dedicated to the automotive sector, started the construction of its plant at the industrial park "Colinas del Lago", in Jalisco. According to the Ministry of Economic Development (SEDECO), this is the first Chinese company to become established at this industrial park. The investment is valued at US$7 million and it will generate job sources for 200 families. Chen Jui I., General Director of this company, reasserted the interest of the company in bringing more projects to Mexico, mentioning that there is a great potential market for its products. Huang Yu Group has been growing in the field of technological innovation, production, market and service expansion. The Company started producing components for automotive products back in 2008.

Source: Axopolis

BMW to open plant in Mexico

BMW maintains its plans of opening a plant in Mexico by 2019, despite threats of imposing heavy taxes on vehicles produced in Mexico for U.S. export, declared an executive of the firm. Trump declared that BMW should build its new plant in the U.S. because that would be "much better" for the company. However, the firm is maintaining its plans and will open a factory in San Luis Potosi by 2019, said Peter Schwarzenbauer, member of the BMW management board. The new plant in Mexico will assemble BMW 3 Series, starting in 2019, with production targeting the global market and it will complement the current production operations for this model, at facilities located in Germany and China.

Source: Milenio

Queretaro will have two new industrial parks in 2017

The Municipality of San Juan del Rio, Queretaro, will have two new industrial parks, one of them with national investment worth (US$9.5 million) and the other one with Canadian investment (amount not defined yet), with an extension of at least 100 hectares. Guillermo Vega Guerrero, Municipal President, explained that they are looking to receive more industry with these new parks and thus, competing with Queretaro and El Marques. The arrival of an industrial paper and box production company from Monterrey is expected soon, with investment worth US$71 million; in addition to two Asian firms from Korea and Japan, dedicated to auto parts and to the automotive sector. One of them with investment valued at US$20 million and the other one short over US$9.5 million.

Source: El Economista

General Motors not to change its production plans

Mary Barra, General Director of General Motors, pointed out that she is not planning to change the production place of their vehicles because of the criticism by President Elected Donald Trump. She made it clear that decisions involving capital are made from two to four years ahead of time in the automotive industry. Trump has threatened recently to impose a big tax on GM for importing its Chevrolet Cruze into the U.S. from Mexico. The firm only imports a small number of Cruze hatchback model vehicles from Mexico, while it manufactures all of its Cruze sedan in a plant in Lordstown, Ohio. Ms. Barra said that it is too soon to speculate about this. The production of the Terrain model will be relocated to Mexico from a plant in Ingersoll, Canada, for the most recent models. The Ingersoll factory will retain the Equinox production.

Source: Milenio

Tomato export growing in Mexico

Tomato exports increased by over US$200 million in one year, underscored the Ministry of Agriculture, Livestock, Rural Development, Fisheries and Food (SAGARPA). The sales of this vegetable generated income valued at US$1.74 billion between January and October 2016, which represents 15% annual growth rates. Besides, tomato was positioned as the most exported Mexican produce and the second most important among the 20 main agri-food products sold to other countries. Regarding production volume per State, Sinaloa is the first place, with 551,000 tons and a 21.6% participation; San Luis Potosi comes next, with 258,900 tons; Baja California is third, with 225,500 tons; followed by Michoacan, with 141,600 tons, and Jalisco with 121,300 tons.

Source: El Sol de México

San Luis Potosi attracts investment worth US$47.6 million

Juan Manuel Carreras Lopez, Governor of San Luis Potosi, presided over the ceremony to lay the first column of the headquarters for Hirotec Mexico, in the Municipality of Villa de Reyes, San Luis Potosi (SLP), with investment surpassing the US$47.6 million mark. This firm will supply products and services for the BMW plant in Mexico. According to Judith Huebner, Purchase Vice President of BMW Mexico, Hirotec's arrival to SLP reinforces the strategic alliance between both companies. On the other hand, Takahiro Hayama, President of Hirotec Mexico, underscored that this is a historic project both for the Company and for the State.

Source: 24 Horas

Ford continues expansion projects in Chihuahua

Ford Motor Company has not suspended its expansion project in Chihuahua. Alejandra de la Vega, Secretary of Innovation and Development Economic of the State, said that the company has advanced its third expansion works already and they continue harvesting corporation awards for engine production in this State. She comments that Ford's corporate is very pleased with the labor force in Chihuahua, even receiving a quality award to the high standards of their engines. So far, the Donald Trump topic has not affected the Ford's projects in Chihuahua, she weighed in.

Source: Plano Informativo

Production goals for the automotive sector remain untouched

The President of the Mexican Association of the Automotive Industry (AMIA), Eduardo Solis Sanchez, assured that the plans to manufacture 5 million vehicles yearly in Mexico from 2020 onward, are still intact after the decision Ford made. Solis Sanchez affirms that these prospects are not affected, as Ford's production was not considered in the estimate, as the investment announcement of the U.S. based company was disclosed after calculating these projections for the industry. Mr. Solis weighed in that companies are always looking for the best place to invest and produce, based on basic key points, which Mexico has: an important network of International Commerce Agreements, a good geographical location, world-class labor force, a strong and robust supply chain.

Source: Capital de Mexico

Hisense announces investment in Baja California

Hisense, a television sets manufacturer, will invest US$20 million on its Rosarito plant, in Baja California, with the purpose of expanding its operations in the State. This economic injection will allow for the creation of 1,000 new jobs, generating work and economic development opportunities in the State. Huizhong Dai, Vice President of Hisense Group, comments that this is the second principal plant to the Company, and the one with the largest production out of China. This investment will allow for an expansion in operations and the introduction of plastic injection processes, metal stamping and packaging materials for television production.

Source: El Financiero

Exports of Mexican services rebounding towards China and the U.S.

China will become one of the main commercial partners for Mexico in the long term, as it has established itself as an important destination for exports from Mexican providers. Services exports have doubled since 2011 and they now represent nearly 5% of total exports. According to the Mexico-Perspectives of Global Commercial report by HSBC, the U.S. is expected to continue as the main destination of Mexican exports of products and services. However, tourism exports to China shall represent 78% of total foreign sales of services by 2030. The attraction of tourism form the U.S. has remained the main export service, but Mexico is gaining terrain in the area of foreign sales of financial services.

Source: El Financiero

Tequila breaks export records

Mexican tequila closed the year 2016 with a high note in exports, accomplishing the largest foreign shipping volume in one year, at least since the record-keeping started, in 1995. In that year, exports of this drink were 64.6 million liters. By 2016 they had grown to 196.8 million, with the U.S. as main client, according to figures collected by the Tequila Regulation Council (CRT). Ramon Gonzalez Figueroa, CRT Director, comments that a new historical record has been set, thus breaking the 2015 record of 181.5 million liters, achieving growth rates of 8.4%, with figures of 196.8 million liters in 2016. Tequila exports have been experiencing sustained yearly growth rates since 2000.

Source: Reforma

Premium house appliances, export opportunity for Queretaro

The home appliances sector is one of the strongest in Queretaro and across the Bajio States, with double-digit annual growth rates over the last months. Moreover, this industry presents opportunities for development in the high value export segments, such as premium components. According to ProMexico, Europa and Asia are destinations of interest to export Premium house appliances (more sophisticated lines, with more technology under a concept of sustainability), as the revenues reduce logistics costs. Venancio Perez Gomez, Vice President Samsung Electronics in Mexico, underscored the opportunity this segment brings, as this Firm is currently developing different products, some of them at the Queretaro plant.

Source: El Financiero