Maquila Portal - Weekly Bulletin

Mexico Manufacturing Industry Information Center.


Bulletin 793 - Friday, February 10, 2017

JFE Holdings to build plant in Mexico

JFE Holdings, a Japanese steel manufacturer, is planning to build a steel plant in Mexico, closely observing President Trump's policies, which could tear apart a regional commercial pact, informed Shinichi Okada, VP of JFE. JFE and Nucor said last June that a partnership would be formed to build the plant in Mexico, with the objective of supplying automakers operating in the NAFTA market. The factory could cost up to US$270 million and will have capacity to produce 400,000 tons of steel plate a year, expecting to start operations in 2019.

Source: TECMA

Companies investing US$45 million in San Luis Potosi

Kansas City Southern (KCS), Watco Companies, LLC (Watco) and WTC Industrial (WTC), are going to invest US$45 million to build a liquid fuel terminal for railway units, located at the Industrial Park WTC in San Luis Potosi. The President and Executive Director of KCS, Patrick Ottensmeyer, detailed that this joint project will increase exports of US oil products, as well as job creation, both in the U.S. and in Mexico. The project is expected to be finalized by the second trimester of 2017. The terminal is located in a free trade zone, thus offering an economic advantage for railway transporters.

Source: Expansion

VISTAMEX inaugurates plant at Parque Amistad, Guanajuato

Guanajuato's Governor, Miguel Marquez Marquez, presided over the inauguration of the Servicios Vistamex's facilities, an automotive supplier installed in Parque Industrial Amistad, in the Municipality of Apaseo del Grande. This 100 % Mexican company is committed to generating over 280 jobs with a US$9.45 million investment, on an area of over 4,000 square meters. Working in plastics injection manufacturing, post injection processes, assembly, repair, modification, adjustment and elaboration of molds and metrology of pieces, the Firm records annual sales of US$17 million with presence in the U.S., Canada, France, Belgium and Mexico. 30 million plastic pieces are manufactured here for sectors including: Industrial, Automotive, Home Appliances and White Line.

Source: Cluster Industrial

Chemical industry investment advancing in Queretaro

The chemical industry has reported receiving investment worth nearly US$1.7 million in 2016 (a 4% annual increase), thanks to the support of sectors such as the automotive, aeronautic, home appliances and bio-technologies, commented Marco Antonio del Prete Tercero, Secretary of Sustainable Development in Queretaro (SEDESU). He comments that the chemical industry represents 13% of Queretaro's GDP, and it is important for the manufacturing industry, as it has relation to various industries through the production of resins, rubbers, chemical fibers, adhesive coatings, paints, etc. He affirmed that US$36 million from the U.S. and Asia were received in 2016, which were invested in the chemical industry. This industry generates 10,000 formal jobs through 129 companies.

Source: El Financiero

Zoppas to increase its investment in San Luis Potosi

Representatives of Zoppas Industries Heating Element Technologies, an Italian enterprise, announced an increase in the Company's investment in the Municipality of Rio Verde, San Luis Potosi, from US$1.5 million to an extra US$2.5 million, adding up to a total of US$4 million to invest, informed Federico Zoppas, Global President of the Firm, and Anastassio Kapetanis, Manager for America. This increase to the initial announced investment will allow for the expansion of the Firm's industrial building to three times its current size. And there are plans to also increase the 350 jobs that were announced. This new plant opening adds to the 10 plants currently operating around the world, and it will have a productive capacity of 40,000 pieces of refrigeration components per day and 4,000 pieces for air conditioner systems.

Source: Somos Industria

Japanese company to invest in Guanajuato

With investment valued at US$1.19 million and the generation of 250 jobs, the Japanese automotive company Aisin Takaoka de Mexico will become established at the Tecnoindustrial Park Castro del Rio, in Irapuato, Guanajuato. Fernando Vera Noble, Director of Economic Development, said that this is one out of 16 investment projects to be completed this year in this Municipality. He pointed out that the investment has been formalized and they are now in the process of starting the land shifting and complying with the necessary regulations.

Source: El Financiero

CAINTRA plans to diversify Nuevo Leon exports

The Chamber of the Transformation Industry (CAINTRA), revealed that 44% of industrial leaders in Nuevo Leon are planning to diversify their exports to Europe, Asia or South America this year, while 24.1% are looking to re-direct their sales toward the internal market. Besides, 32.6% of entrepreneurs are developing different strategies to sort out any affectations derived from a possible crisis of commerce with the U.S. This actions might yield a 1.5% growth rate for the industrial sector in 2017 while creating 18,000 jobs. On the other hand, this organization underscored the fact that Companies must search for the necessary tools, counseling and training to become more competitive. Likewise, CAINTRA affirms that the Government, across its different levels, must establish incentives for companies, as well as revision and improvement of regulations aimed at facilitating business.

Source: Capital de Mexico

Indian entrepreneurs 'rolling' into Mexico

Hero MotoCorp, the largest motorcycle manufacturer in the world, based in New Delhi, India, is soon to inaugurate a plant in Buenos Aires, Argentina, to produce and ship out to all of Latin America, and primarily to Mexico, where motorcycle sales maintain two-digit sales rates. The total value of this market had an add-up of US$47 million in Mexico from January to December 2016, that is 12.4% more than 2015. Even though the firm has a factory in Colombia, it is insufficient to cover the demand in Latin America, hence the opening of the factory in Argentina.

Source: El Financiero

Keats Manufacturing announces opening of new plant in Queretaro

The Keats companies have opened a new manufacturing plant in El Marques, Queretaro. The new plant is the 3rd manufacturing plant under the Keats corporate umbrella. It will operate under the name Keats de Mexico and will manufacture Complex Precision Metal Stampings, Wire Forms & Assemblies for the Automotive, Electrical Distribution, Medical, Electronics, Appliance & Home Automation industries. Keats specializes in Custom Metal Clips, Terminals, Brackets, Heat Sinks, Ground Straps , Shields, Springs, Contacts, Covers, Washers, Antennas, Plates, Inserts, Clamps, Bus Bars, Spacers, Bushings, Caps, Pins, Yokes, Disks, Socket Jaws, Sleeves, Lead Frames, Armatures, Collars, Latches & Blades. The building is approximately 15,000 sqft and will employ 15-20 people. Total investment will be approximately US$1MM.

Source: Keats Manufacturing

Nemak, with a new strategy toward 2025

Nemak will re-orient its growth strategy for 2025, said Armando Tamez Martinez, General Director of the Company. This is due to changes in the automotive industry dynamics worldwide, a greater demand for hybrid and electric vehicles, while reducing their weight. He also informed that there are now several contracts signed to supply BMW and Daimler Chrysler with various pieces and structural components. Regarding the topic of the increase in gasoline prices in Mexico, Mr. Tamez Martinez said that it is still too soon to define the impact it could have on the Company, in the face of possibilities for increased demand for electric or hybrid cars.

Source: El Financiero

General Motors confirms Mexico is an excellent producer

The plans for production, sales, export and investment which have been announced by General Motors (GM) in Mexico, keep moving forward, assured the President and General Director of GM Mexico, Ernesto Hernandez. Alan Batey, President of GM North America, emphasized that U.S. President-elect and GM have not yet talked about the operation of the brand in the region, which is broad and complex. The GM plants in the U.S., export an important number of vehicles to the Mexican market and Mexico, likewise, sends an important number of units to the U.S., said Batey. GM is looking for the best location, logistics and profitability, such as the North America region, and Mexico is an excellent country to produce, expressed Mr. Batey.

Source: Cluster Industrial

GM relocating Canada plant to Mexico

General Motors, in addition to producing the GMC Terrain in Mexico, has plans to relocate a plant currently operating in Canada, revealed Coahuila's Governor, Ruben Moreira Valdez, who pointed out that "the ideal thing would be to welcome it in Ramos Arizpe, but as long as it comes to our Country, anywhere it comes, is good for us, as we are GM providers in this region". On the other hand, Governor Moreira affirms that "neither GM nor Fiat Chrysler are leaving Coahuila, and we have to take things objectively, as recent announcements by Mr. Trump are not against the Mexican economy, but against the global economy".

Source: Zocalo

Guanajuato, with favorable automotive prognostics

Amidst the uncertainty generated by Donald Trump, in relation to different sectors such as the automotive, it is good to find transnational corporations located in Guanajuato that have a projection far from the expected panorama. Cikautxo, the Basque company with a plant in Leon, projects to increase its staff to 300 operators by the end of the year and at least 200 more in 2018. This increase in the number of employees was due to the growing demand from its primary clients, such as Ford, Audi and General Motors, with whom they have a signed contract to supply tooling over the next five years, for their operations both in Mexico and abroad.

Source: Cluster Industrial

Volvo no is not leaving Mexico and bets on the U.S. markets

Volvo announced that it will maintain its presence in Mexico. Additionally, Volvo's spokesperson remarked that, comparing production costs in Mexico to those anywhere in the U.S., it is clear that there is not a large financial difference among both. The assembler had already selected North Carolina as the place to establish its new factory, considering that the U.S. is a larger market. Hakan Samuelsson, Volvo President, commented recently that the Charleston factory has a "global" ambition. "It will produce for the U.S. market, but almost half of the production will go to export", he expressed. He affirms that Mexico is very attractive, but pointed out that the key difference is that U.S. is the largest market, and Mexico is not.

Source: Aristegui Noticias

Ryder will have a new warehouse in the Mexican Bajio

U.S.-based Company, Ryder, which provides supply chain solutions, especially for the automotive industry, will continue investing in Mexico. This firm will focus on the development of new facilities located in the Bajio (center) region, over the next 18 months. This new infrastructure will have a warehouse, a parking lots for 200 trucks and an equipment maintenance shop, confirmed Eugenio Sevilla-Sacasa, General Director of Ryder Mexico. The firm has plans to continue making the most of the arrival of assemblers and their first-line providers, as Mexico’s project is to raise automotive production from 3.3 million to 5 million cars in 2020.

Source: T21