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Bulletin 787- Friday, December 23, 2016


Spain, interested in alliances with the aeronautic sector in Queretaro

The Center for Industrial Technological Development (CDTI) of the Ministry of Economy and Competitiveness in Spain is looking to establish involvement agreements between the research sector and companies from the aeronautic industry in Queretaro. German Casal Arcau, representative of CDTI, said that a future project could be outlined with Corporation Tecnalia, from the Basque Country, for instance, since institutions such as the Mondragon University (of Basque origin) can be found across the State. Casal Arcau stated that the aeronautic industry requires innovative processes and products, with a high quality level, which applies to the research model they use.

Source: El Financiero

Chinese investment in Mexico clearly on the rise

The total volume of commerce between Mexico and China reached US$80 billion in 2015, informed the Mexican Entrepreneurial Council of Foreign Commerce (COMCE). "Despite the current situation in the U.S., the Mexico-China relation has a positive outlook for 2017 and the communication could increase. Chinese companies expect to keep coming to Mexico. Investment will go up in 2017", said Yaogang Chen, CEO of the Industrial and Commercial Bank of China (ICBC) in Mexico. The bank's bet is to finance corporations, mainly for infrastructure, energy, telecommunications and manufacture. Besides, after the successful bid for Pemex's Round 1.4, "ICBC has been in talks with China National Offshore Oil Corporation (CNOOC)", said Chen. Even the volatility of the peso might benefit investment in Mexico, as companies have systems to mitigate these effects, said the CEO of ICBC.

Source: Plano Informativo

Mexico to open commercial offices in Dubai and Russia in 2017

Mexico is looking to replicate the success of its avocado at the Super Bowl by selling thousands of tons for the 2018 Russia Soccer World Cup. The Ministry of Agriculture, Jose Calzada, said that Mexico will open commercial representation offices in Dubai and Russia during the first trimester of 2017, with the objective of introducing its precious avocado into this market, as Mexico enjoys the main avocado producer status worldwide. Calzada also commented that, the same way as the avocado was positioned at the Super Bowl, by selling 100,000 tons on the day of this event, (US$200 million), the objective now is to successfully position this product at the Soccer World Cup to be held in Russia.

Source: El Economista

Yucatan industrial park to be built soon

San Francisco de Asis Group is going to build the Industrial Center of Yucatan (CIDY), on a 500 hectares area in the Municipality of Hunucma. It will have a long term investment valued at US$120 million, featuring a business center with capacity for conventions and massive events, a multimodal transport terminal, cargo movement, customs posts, service zones, restaurants, banks and a hotel, as well as other basic elements enterprises, users, employees and operators need. The process to obtain the necessary permits to start this development is currently underway.

Source: Automotores.mx

New CM/Heineken plant with 50% of advance

There is advance over 50% in the installation of the new plant for CM/Heineken in the Municipality of Meoqui, Chihuahua, and over US$100 million out of the US$400 million allotment announced has been exercised in 2015 for its construction, said Marco Antonio Mascarua, Vice President of Corporate Affairs for CM/Heineken Mexico. This plant is expected to start operations in September 2017. It has 69 hectares of land and it shall be the seventh location in Mexico, with capacity to produce 5 million hectoliters, which could be expanded up to 10 million. Eusebio Reynoso, director of the Meoqui plant project, said that 14% of its production will be for export. The investment for this plant is part of the 2015-2019 plan for CM/Heineken, which is valued at approximately US$2 billion.

Source: El Economista

Saltillo looking to attract US$75 million investment

Atlantis Industrial Park in Saltillo, Coahuila, is competing with San Luis Potosi and Puebla, for an investment in the food industry sector, valued at US$75 million and the creation of 2,000 jobs. The businessman Gerardo Rodriguez informed that it is an international food-health firm which has already plants in Mexico to provide to the national market, however, the new plant will target the export market. Rodriguez comments that this decision will be made within the first 3 weeks in January. The Atlantis Industrial Park, located behind the Cactus Valley Industrial Parks and the Kimberly Clark plant, has a 64 hectares extension and has 40 extra hectares reserved. In case this company's investment is completed, its premises will occupy the whole industrial park.

Source: Vanguardia

John Deere looking for suppliers in Guanajuato

Automotive company John Deere is looking for Guanajuato suppliers to integrate to its value chain, and to this effect, it hosted a "Supplier Day". Over 20 companies participated in this business meeting, with the objective of getting at least 10 new mid-term local providers. The Company is looking for iron smelting, machining, wire forms, pipe folding assembly, plastics injection, gears, cabin components, hose and hydraulic line vendors. Luis Antonio Vargas, Sector Director of Developing Industries at the Coordination for Foreign Commerce Development (COFOCE), underscored that John Deere has doubled the amount of its supply purchases over the last five years; nowadays, 40% of its providers are from the national market, the challenge is to raise that percentage to 60% within the next two years.

Source: AM.com

Chinese automotive assembler arrives in Nuevo Leon

Nuevo Leon is currently in negotiations with a light vehicle assembler that seeks to become installed in Mexico in order to produce for both the local and the export market. Although authorities have not yet revealed the name of this company, sources indicate that Beijing Automotive International Corporation (BAIC) is the interested firm. BAIC is now commercializing two of its models in the national market: a compact car and a SUV. Samuel Peña Guzman, sub secretary of Investment and Industrial Development of the Ministry of Economy and Labor (SEyT) said that a feasibility assessment to establish operations in Mexico, specifically in Nuevo Leon, is performed.

Source: El Financiero

Thought for food in U.S.-Mexico agricultural trade

According to www.neighborsforgood.com., the bounty of fresh fruits and vegetables at a local grocery store, in large part due to trade with Mexico. U.S. agricultural imports deliver lower prices and expanded choices year-round. Between 1993 and 2015, Mexican agricultural exports to the U.S. climbed from US$2.7 billion to US$21 billion. Adjusted for inflation, that's more than a 400% increase, and makes Mexico the second-largest supplier of U.S. agricultural imports. Mexico ranks as the third-largest agricultural export market for the U.S., with sales of food and farm products, totaling US$19.5 billion in fiscal year 2014, and accounting for nearly 13% of all U.S. agricultural exports. In the overall scheme of trade, agricultural products represent 7% of total imports and exports between Mexico and the U.S. The U.S.-Mexico food and agricultural relationship is vital to both countries, and the impacts reach far beyond the US$40-plus billion in bilateral trade?providing jobs and keeping rural communities vital, while keeping grocery stores well stocked with affordable food 365 days a year.

Source: Neighbors for Good

Germany will continue investing in Mexico

According to the last survey from the German-Mexican Chamber of Commerce and Industry (CAMEXA), German companies will increase their investment in Mexico, despite the concern for Donald Trump's new policies. CAMEXA indicates that 83% of German companies in Mexico foresees a negative effect in their business due to the commercial policy of the elected U.S. President. CAMEXA assures that, regardless of this, the trust of German entrepreneurs established in Mexico remains unaltered. Most German entrepreneurs are anticipating new investment for 2017. Johannes Hauser, General Director of CAMEXA, informed that small and medium enterprises from Germany have great interest in becoming involved with the value chain of the energy sector, not for crude oil exploitation, but as technology providers. Hauser explains that in addition to the automotive and equipment sectors, the capital goods are playing a major role in German exports to Mexico.

Source: Cluster Industrial

QSR opens plant in Queretaro

Q Holding Company has established its first plant of its division QSR (Q Seals Mexico) in Mexico, considered one of the most important companies in elastomeric components manufacturing for the automotive sector, health industry and electronic components. QSR is arriving into Queretaro due to the high demand from its clients in the region and the opportunities related to competitiveness topics in the State, informed Randy J.Ross, CEO and President of Q Holding Company. This company is coming to Mexico with the last spearhead technology that the company has developed along five decades. One of the most important points for QSR Corporation is regarding environmental responsibility. Randy J. Ross, explained that over the years, the company has successfully developed technologies which suppress the use of fossil fuels in its silicone-based production processes. The priority is to deliver quality products that exceed its clients' expectations. This plant opening is the first step in a continuous growth process.

Source: Cluster Industrial

Ferrero increasing its Mexico production by 50%

Grupo Ferrero, the Italian multinational confectionery firm, wants to increase by 50% its production in Mexico over the next five years, thanks to the Research and Development center inaugurated by the company last October in San Jose Iturbide, Guanajuato. The company produces nearly 30,000 tons of chocolates and hazelnut at its plant located in the same municipality, and is now planning for a 15,000 tons increase with this center of innovation, according to reports by the firm. The Research Center had an approximate investment of US$1.85 million, looking to develop local raw materials and even possible new products both for the Mexican and foreign markets. The production from the San Jose Iturbide plant has provided 65% of the Mexican market over the last year, while the rest has been serving other countries in America.

Source: Manufactura

Carrier to start operations in Nuevo Leon in March: authorities

Authorities from Nuevo Leon are confident that Carrier Corporation, specialized in HVAC systems, will start operations in the Municipality of Santa Catarina as of March 2017, since there are workers who have been already hired and the plant is complete, despite the issued announcement of not relocating its Indiana production to this Mexican town. As there is no official statement from the firm, the plant's works are ongoing and it is expected to start operations in March 2017, generating over 2,000 jobs, indicated the Mayor of this Municipality, Hector Castillo Olivares.

Source: Expansion