Maquila Portal - Weekly Bulletin

Mexico Manufacturing Industry Information Center.


Bulletin 696 - Friday, January 16, 2015

Mexican Automotive Industry breaks new record

By 2014, Mexico reached 3,219,786 assembled units and 2,642,887 foreign shipments; ranking as the seventh automotive manufacturer worldwide, displacing Brazil, and is expected that by 2015 it will break a new record. Eduardo Solis, the President of the Mexican Association of the Automotive Industry (AMIA), remarked that Mexico has consolidated as the second vehicle exporter to the U.S., leaving behind Japan with a selling of 1 million 875,575 vehicles during 2014 against 1 million 627,296 of Japanese cars. He estimated that 3.5 billion units will be manufactured by the end of 2015, such growing will locate between 7 and 8.7% for this year. Exports will ascend between 8 and 10%, with 2.9 million vehicles worldwide, and 71% will be destined to U.S. due to automotive market demand because of the GDP rise in that nation. By 2017, it is expected that Mexico manufactures 4 million units, and 5 million vehicles by 2020. Last December was a historic month because over 27% more vehicles were produced compared to the same month in past years. In 2014, the Automotive Industry manufactured 208,498 units and 164,221 for 2013. Exports grew 21% in December 2014, with 195,091 sold units, compared with 161,208 in 2013.


Source: El Economista

Construction of industrial buildings is progressing in Coahuila

The construction of Industrial parks moves forward since 2014 but will start operations this year. Davisa is building a new plant for Mahle in Santa Maria Industrial Park, in a 201.6 thousand square feet ground. A plant with an extension of 201.6 thousand square feet is also in construction for Sodecia, a supplier company of the automotive sector, with 32 locations all over the world having customers such as GM, Chrysler, Daimler, Fiat, Honda, Mitsubishi, Renault, Nissan and VW, among others. The TitanX plant is also under construction at the Amistad Industrial Park. It is expected to be finished by February 2015. On the third stage of the Amistad Industrial Park, they continue working in Vuteq facilities which will have 17.6 thousand square meters area. In the case of Saltillo-Ramos Arizpe Industrial Park, the Diken Company should be ready by the first trimester of 2015. In the meantime, at Server Industrial Park in Arteaga, the Lear Corporation Plant is built in a 384 thousand feet surface. Near there, a plant of 170 thousand square feet destined for Turck is being built. This plant is part of Mirus project and the first stage will be ready also on April of this year.


Source: Vanguardia

Mexico attracts Japanese investment

Mexico ranks second place as the favorite country for Japanese investments, highlighted Taku Okabe, Researcher of the University Center for Economic and Administrative Sciences (CUCEA) from the University of Guadalajara (U. de G.). He emphasized that until 2013, 90% out of the 530 Japanese companies in the country were located in Jalisco, Colima, Michoacan, Guanajuato, Aguascalientes, San Luis Potosi and Queretaro. Leo Guzman, Professor of Human Resources in CUCEA, mentioned that: "Entering to Japanese supply chains brings great benefits in terms of knowledge transfer, adoption of quality systems and organizational systems". From 2005 to 2013, trade between Mexico and Japan doubled, pointed Salvador Carrillo, expert in University of Guadalajara. He added that the biggest Japanese companies established in Mexico send much of their exports to the U.S. market and other countries in Latin America and a lesser extent to Japan. Japan buys from Mexico products like pork, avocado, vegetables, coffee, lemon, melon, among others.


Source: Reforma

Mexico City still ranking first in competitiveness: Mancera

Miguel Angel Mancera, head of Government, assured that Mexico City continues ranking first in competitiveness, reaching the 47.5% of the FDI at national level. He also commented that Mexico City generates 20% of total formal employments in the country. Accompanied by Ricardo Navarro, President of the National Chamber of Commerce in Mexico (CANACO), and members of the business sector, Mr. Mancera said that he will continue working on keeping positive the economic indicators and references reflected in the State Competitiveness Index 2014. He added that the actual conditions in Mexico needed the unity, cooperation and collaboration of all sectors of the population, which should include actively to elderly, disabled, youth and women heads of households. Likewise, he stressed the support the Ministry of Economy that provided the capital to encourage youth entrepreneurship and improve the business sector and trade.



U.S.A and Mexico bet on energy cooperation

Within the High Level Economic Dialogue (DEAN), Mexico and the U.S. began to explore options to facilitate the crossover of large equipment necessary for exploration and production of energy, with the objective of making North America the headquarters for this industry. The DEAN’s declaration, issued during the visit of the President Enrique Peña Nieto to Washington, says: “We are convinced that a more efficient and integrated energetic sector based on a bigger energetic cooperation will play a fundamental role to push North America´s competitiveness and leadership in the future”. The American Embassy in Mexico transmitted the document that ensures that, by 2015, these nations will continue working on six key areas: energy, modern borders, labor force development, regulatory cooperation, association for the local and global leadership, and stakeholder engagement of the private sector and civil society. Mexico and USA concluded in November 2014 a negotiation about air services that will benefit travelers, conveyors, air lines and the economy of both countries with competitive prices and a more accessible air service.


Source: Primera Hora

Industrial Park project moves forward in Guanajuato

By the next month, the construction of the first Industrial Park could be starting. Located in San Francisco del Rincon, it is unique, as it will have a shopping and residential area, besides the industrial buildings and the establishment of companies. The Lintel Company will be responsible for development of industrial part. US$20.16 billion will be invested for the first stage. The Park will be built on an 8.5 hectares surface, but the original project is to increase to 23 hectares.


Source: El Economista

Toyota aims to build new facilities in Mexico

Toyota Motor Corporation is seeking to build a new assembly plant in Mexico and two more in China, thus ending a three-year frozen period in new facilities construction. The Japanese Automotive Industry has completed its feasibility studies for the plants both in China and in Mexico, according to one of the experts of the company, and “both are ready for execution”. In Mexico, Toyota is searching for a location for a passenger vehicle plant in and around the state of Guanajuato. “We are just waiting for the last green light” from Toyota´s Headquarter, said one executive in China. The new Toyota´s plant would be the second in Mexico. It already has a pick-ups factory in the state of Baja California, capable of producing 63,000 Tacoma vehicles per year, but has no ability to build passenger vehicles.


Source: CNN

Standard Profil inaugurates new plant in Guanajuato

Standard Profil, the manufacturer of sealant agents for the automotive industry has expanded its international operations to America. Its 10th factory, opened in Guanajuato last December, will supply sealing systems for the automotive industry in North America. The plant, built with an investment of US$36 million, is a cutting-edge facility, equipped with the best technologies of Standard Profil. Turhan Semizer, Standard Profil CEO, said that this plant will play an important role in its globalization strategy, adding: “Standard Profil’s first projects started in Turkey 38 years ago, but nowadays we are the second sealants supplier in Europe, with about 20% of the market. We always seek the proximity to our customers". Mexico is one of the key players in North America, it supplies to giants of the automotive industry in the region and has enormous experience in the field. Standard Profil is looking to transform these attributes to their own benefit through the transfer of technological capabilities. Quality products have reached from Mexico to the entire automotive industry in America. With the strength and the advantages that this productive location provides, Standard Profil will be in a more competitive position in North America.


Source: Cluster Industrial