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Bulletin 777- Friday, October 14, 2016


Exports up 8% in Queretaro

Exports in the State of Queretaro increased between 6% and 8% during the first semester in 2016, which roughly translates to US$5 billion, supported by the performance of the automotive industry, disclosed Ricardo Zaldumbide Ceceña, President of the Mexican Entrepreneurial Council of Foreign Commerce, Investment and Technology (COMSE) in the State. In this manner, he assured that there are good growth expectations to close the year, with even further development in this sector. In addition, the integration of the new assemblers in the Bajio and Puebla regions, means auto parts and components exports are increasing, hence generating an increase in indirect exports from Queretaro. On the other hand, Zaldumbide reports that companies in Queretaro present higher added value with the integration of exports; the State has been reporting commercial surplus over the past few years, with estimations to reach between 9% and 10% surplus rates, and exports worth US$11 billion.

Source: El Financiero

Digital industry to innovate employment

With the revolution 4.0, Mexico might lose jobs due to increased automation in different industries, but shall gain more investment coming into the country and setting up locally to develop labor force with design, innovation and software, reasserted the Ministry of Economy, Ildefonso Guajardo. In Asia, for each job lost, 3.7 jobs are created; in Mexico, statistics suggest that three jobs are created per each lost job, stated Mr. Guajardo. The positive effect for Mexico with the revolution, is investment, which has reached US$27 billion over the last three years, for the automotive sector. Moreover, Marcos Perez, Director of Product Development with Ford Mexico, underscored that the challenge for this country is to step up as the second or third largest vehicle producer in the world, and this is the reason why Ford is working now to develop hybrid and connectable electrical cars.

 

Source: El Economista

More textile companies joining the automotive sector

Out of 160 companies from the textile industry working in Mexico, 29 have found a niche of market in the automotive sector in the last five years and the forecast is that another 20% of associates shall be able to venture as suppliers for the next year. The President of the Association of Textile Entrepreneurs from Puebla (APET), Jose Miguel Brito Garcia Teruel, explained that the firms have started to look for new opportunities, after their equipment’s modernization. Filters, air bags, covers for seats, doors, bands and cables with Premium quality are produced now in Puebla, for clients including Volkswagen, Mercedes Benz, BMW, among others. In the case of foreign textile companies, there is the Austrian company Boxmark Leather, located in Tehuacan, Puebla, manufacturer of seats and leather accessories for luxury cars, trains and airplanes, which is set to create 2,500 jobs.

 

Source: El Economista

Toyota investing to expand its Baja California production

Automotive company Toyota will expand its production capacity in its Baja California plant, to manufacture more units of its Tacoma model, which was the reason behind its recent US$150 million investment. The Company says this will bring the numbers up, assembling over 60,000 annual SUV's in addition to its current capacity, besides generating 400 new jobs in the region. The production capacity of this plant is currently 100,000 Tacoma units per year. "The demand for SUV's in North America has grown exponentially. By taking advantage of the experience and availability of these new manufacturing facilities, we are becoming more agile and better adapted to the market's need under the just-in-time scheme", said Jim Lentz, President and General Director of Toyota Motor North America.

 

Source: El Financiero

Cluster to boost local auto parts

The Automotive Cluster of Nuevo Leon (CLAUT) and the Ministry of Economy (SE) started up a national pilot project to replace imported auto parts, which will be provided by small and medium businesses. Manuel Montoya, General Director of the CLAUT, detailed that the expectation is to have sales of components made in Mexico reach a value of nearly US$121 million through this initiative, over a term of 8 years, at most. 6 truck-component companies located in the State are participating: Nemak, Metalsa, Daimler, Ficosa, Katcon and Sisamex, in addition to 12 SMEs, out of which, 6 will be installed in Nuevo Leon and the rest, in other towns. Mr. Montoya explained that US$3.1 million were invested to start up this project. According to a statement issued by CLAUT, this industry, just in the Nuevo Leon area, has a potential to buy supplies worth US$10 billion yearly. The number of national supplies currently used to manufacture a component piece, is 41%, but this rate is expected to increase after the raise in the dollar exchange rate.

 

Source: El Norte

Queretaro receives investment from Toyota and other projects

Toyota might become established in one of the three industrial parks operating in the Municipality of Colon, Queretaro, informed the Mayor, Alejandro Ochoa. In addition, the Company is interested in installing a Center of Distribution and Logistics in Colon. On the other hand, the Mayor informed that Arkansas State University shall develop an industrial park in the campus that is currently under construction in Colon, which will shelter companies related to the academic programs the University is going to work with, starting next August 2017. Likewise, the first stone of the Vesta Real Estate Industrial Park, in the Ejido Viborillas zone, shall be set this upcoming month of December, which is expect to shelter supply companies for the aeronautic sector. US$150 million shall be invested during its initial stage to purchase the lands and develop infrastructure.

 

Source: El Financiero

GM has more investment projects in Coahuila

The head of the Ministry of Economic Development, Jose Antonio Gutierrez Jardon, assured that General Motors has projects for more investment in Ramos Arizpe, Coahuila. Besides, he mentioned the announcement for a US$5 billion investment project by GM Mexico, with a large portion of this capital going to Coahuila. Gutierrez Jardon also stated that an official announcement for an investment by the U.S. based assembler in its local complex, will be made soon. Additionally, last year, during the framework of GM's anniversary, another investment project was announced, which the company will disclose timely, thus confirming the status of a Firm in expansion in this region.

 

Source: Zocalo Saltillo

Yucatan, attractive destination for investment

Over the last four years Yucatan has attracted direct Investment worth over US$3 billion and another US$1.5 billion are expected to arrive over the next two years, informed Ernesto Herrera, Ministry of Economic Development (SEFOE) of the State. In addition, as part of this economic growth, 46,286 formal employment positions have been created during the period from September 2012 to August 2016, which represents 89% of all jobs created during the prior 11 years. Among the investment projects realized in the last four years, there is one by Grupo Modelo AB-Inbev, with US$256 billion; Grupo Kuo (Keken) with US$500 billion and Via Montejo with US$435 million.

 

Source: El Economista

VW Puebla increasing its production

Volkswagen Mexico just opened a third shift for labor at their Puebla plant, hiring 500 new workers and raising daily production to 2,100 units with models Golf and Golf Variant included. The Group Volkswagen Mexico, made up by the brands VW, Audi, Porsche and SEAT, including commercial vehicles, as well as the luxury brand Bentley and the MAN truck line, successfully increased in one year its market participation by 3.1%, peaking at 16.7% from January through September. Volkswagen Puebla produces the models Jetta, Golf and Beetle, and according to analysts, the company is operating at full capacity, thus requiring new investment for expansion. 457,000 units were manufactured in this complex during 2015, with 80% shipped out as exports and 20% for domestic consumption.

 

Source: Al Volante

Internacional Modine expands its Tamaulipas building

Internacional Modine Corporation inaugurated its third industrial building in Nuevo Laredo, Tamaulipas, with a US$10 million capital investment. Standing on a 470,000 square feet surface, this new Modine plant will hire 200 workers, expecting to add 100 more over the course of one year, to produce car radiators. Thomas Burker, Global Modine President; Thomas Marry, VP; Enrique Rivas Cuellar, Municipal President of Nuevo Laredo; Pedro Diaz Puerto, General Manager for Modine Nuevo Laredo, among other VIP's, attended the inauguration of this third steel processing plant. Prior to the ceremony, a walk about the industrial building was offered, to oversee the millionaire investment the company brought to this border town.

 

Source: Siglo 21

AMPIP will invest US$7 billion in industrial parks

The Mexican Association of Private Industrial Parks (AMPIP) will invest US$7 billion over the course of this government's administration, informed Pablo Charbel, President of this organization. "It would be equivalent to a daily amount of US$8.2 million worth of investment from now until 2018, for new world-class industrial parks". Charbel stated that the new parks will have strategical fiscal zones, as well as special economic zones for collaboration and of new creation. Although the zone to locate the new industrial parks was not disclosed yet, Charbel weighed in that Jalisco is an important hub of development for the industry, which is why some investment projects might be formalized in this State.

 

Source: Reforma

Mecaplast in Puerto Interior was inaugurated

After nine months of construction, the new plant of the French firm Mecaplast Group, BMW supplier, was inaugurated in the Guanajuato Puerto Interior industrial park and will generate 150 jobs. Philippe Vayssettes, Mecaplast Group America Director, said they were looking for an effective plant to start up other key projects, such as supplying to General Motors, particularly for the Equinox SUV. The Mecaplast plant in Silao is leader in mold injection of technical parts for vehicles, designing, developing and manufacturing parts, sub assembly and integrated modules for vehicles.

 

Source: AM.com

Tire production in the Bajio, doubled

The Bajio region is set to become the largest tire production cluster in Mexico within two years. By the end of 2018, over 26 million tires per year will be produced in this region, with the objective of satisfying the estimated demand of 50 million units per year in Mexico, by 2020. This will help to face the arrival of new assemblers in Mexico, as the prospect for 2020 is to produce 5 million cars yearly. Over 20 million tires are produced yearly in Mexico, out of which 75% is exported, primarily to the U.S., and the rest is commercialized in the domestic market. In the Bajio region, there are plants of the firms Pirelli, Michelin, Goodyear and Continental; in the State of Morelos, there is a Bridgestone plant; in Jalisco, operates Corporativo de Occidente and in Mexico City, JK Tornel.

 

Source: AM.com