Maquila Portal - Weekly Bulletin

Mexico Manufacturing Industry Information Center.


Bulletin 715 - Friday, June 12, 2015

Mitsui to build Auto-part plant in Coahuila

The Japanese manufacturer Mitsui & Co. Ltd. will build a tire factory in Northern Mexico through its affiliate Android Industries, which will have the capacity to satisfy the demand of 300 thousand vehicles. The factory will be built in the city of Saltillo and it is expected to begin operations in March 2016, according to the report.The investment's amount is still undisclosed. Mexico is the seventh largest producer of light vehicles and ranks fifth in auto parts, according to the Mexican government. Mexico exports more than 80% of its production to international markets.

Source: CNN

Future investments will create 3,000 jobs in Guanajuato

Eliane Hernandez Hinojosa, Director of Economic Development of Irapuato, said that over the next year, at least 3,000 direct jobs will be created with the arrival of new investments to Irapuato. Mrs. Hernandez said that 10 thousand direct jobs and about 35 thousand indirect jobs have been created so far.She also reported that more than 850 jobs will be generated with the arrival of three companies, and the creation of 1,500 jobs for development projects in the coming months.

Source: Cluster Industrial

Nissan is seeking for suppliers in Mexico

Nissan pretends to increase by 13% the local components of vehicles manufactured in the country, so they will seek to increase their Tier 1, 2 and 3 supplier base within the next two years. The company is maintaining an average of 77% local content in its Mexico produced vehicles. Its current goal is to reach 84% local content by 2016 and 90% by 2018. This could result in the addition of 50 new Tier 1 suppliers. In 2014, the company spent US$5.6 billion on 20 thousand auto parts and components, and by 2016, purchases will total US$7.2 million. Tier 1 suppliers of construction and repairs, Tier 2 suppliers of machined forgings, castings, plastic composites, electronic components, and Tier 3 suppliers of aluminum alloys, resins and rubber and specialized steel, are wanted for this expansion. Among the requirements suppliers must meet are: ANPQP certification (a quality standard similar to ISO9000), capacity of development and good financial health.

Source: Manufactura

Mexico's potential attracts Hong Kong companies

Mexico received a large delegation of businessmen from Hong Kong, with great potential to investment in industries of tourism, mining, cement, petroleum, automotive, infrastructure and telecommunications, among others. Valentin Diez Morodo, President of the Mexican Business Council for Foreign Trade, Investment and Technology (COMCE) and Alicia Buenrostro, General Consul of Mexico in Hong Kong, noted that entrepreneurs have shown a special interest in the Pacific Alliance. "For them, the four countries of the Alliance: Colombia, Chile, Peru and Mexico, have special attractions. It is a delegation composed of 44 members, who lead powerful companies in different sectors," said Mr. Diez Morodo.

Source: MexicoXPORT

Mahle and Johnson Controls inaugurated their new plants in Coahuila

The new Mahle and Johnson Controls plants, located in Santa Maria Industrial Park in Ramos Arizpe, started operations. Both are suppliers of the automotive industry and will strengthen the cluster of the Southeast Region of Coahuila. The new Mahle Behr plant brought about an investment of US$20 million and will create 100 jobs. On the other hand, the new Johnson Controls' plant will generate a US$30 million investment and more than 500 jobs. Likewise, Sodecia's plant, which is expected to begin operations later this year, is being built in this industrial park with an investment of US$36 million and 300 new job openings.

Source: AMPIP

Five automotive assembly plants seek to be installed in Mexico

Land Rover, Renault, Hyundai, Seat and MINI are seeking to expand their production capacity, and Mexico is positioned as one of the most attractive countries for the installation of a plant, due to its supplier base and proximity to the U.S. According to experts, these plants could inject a capital investment of US$4 billion in the coming years. Land Rover would come to Mexico prompted by the 18% increase in its U.S. sales rates, according to WardsAuto. "It would be interesting to have a plant in North America By 2018, and Mexico is a very strong candidate due to its labor costs, logistics and experience with the complete distribution network," said Joseph ChamaSrour, Land Rover's General Director in Mexico. This would represent an investment of more than US$500 million. Renault evaluates to set a plant in Mexico, considering the importance that the country has in the global automotive industry, with an investment of up to US$800 million. Hyundai seeks to turn Mexico into a major hub for global production, and expects to invest about US$1 billion. Seat could produce its cars in Mexico, since most of its suppliers are located in Puebla. MINI could expand its presence in Mexico, because its manufacturer, BMW, announced a project to build a new factory in the country.

Source: El Financiero

Logic PD teams up with Tecma in Mexico

Minnesota-based Logic PD has announced that it will establish a new manufacturing facility in Ciudad Juarez, Mexico under an agreement with the Tecma Group of Companies' Mexico Shelter Manufacturing Partnership (MSMP).

An extension of the company's manufacturing facilities in Minnesota, the Ciudad Juarez facility provides Logic PD with the flexibility to meet its customers' demands for accelerated time-to-market and reduce manufacturing costs while maintaining continuous quality improvement. At the new facility, Logic PD will support its customers with high-mix, low-volume and high-labor content manufacturing, aftermarket services (product life cycle management; repair depot, cost optimization and materials management services) and in-factory provisioning of Internet-connected devices.
"Flexible fulfillment options are critical to the future needs of customers in the digital world," said Bruce DeWitt, CEO at Logic PD. "Our new facility in Ciudad Juarez will enhance our position in providing competitive and convenient services to our customers that are developing, deploying and managing connected devices."

The Minnesota firm will occupy industrial space in one of North America's most industrialized US-Mexico border cities, and anticipates that when the project reaches maturity, Logic PD will require a projected workforce of 50-75 individuals at the facility.

In addition to the managing the facility, Tecma will provide support services in areas such as human resources, payroll and benefits management, Mexican accounting, import-export operations and logistics and transportation.

Source: TECMA

Mexico expects US$22 billion energy-sector investment in Round One Biddings

With the launch of public tenders, the Mexican government opens the opportunity for the creation of a private national oil industry, by attracting private investment into the country. The Round One offers a diverse and broad portfolio of investment opportunities. For the first three calls, US$22 billion will be invested and 218 thousand jobs will be created, in the medium term. Recently, the Round One's third call was announced, which includes 26 contractual divisions for the extraction of oil in onshore fields, associated gas, dry gas and condensate. Applicants must demonstrate whether they have experienced staff even if the company was constituted recently or it is its first time participating as an operator, besides proving a financial capacity of US$5 million equity for each of the 22 contract division with this requirement, and US$200 million for each of the remaining four.