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Bulletin 792 - Friday, February 3, 2017


Ford still considering Mexico for long-term plans

To Ford, Mexico represents an important component for long-term plans, which is why the Company is reflecting on the new conditions of the commercial relation with the U.S., to design consequently the adequate and viable strategies to adapt rapidly, affirmed Marcos Perez, Ford's Director of Product Development and Mobility. He comments that Mexico contributes to the Company with quality manufacturing and engineering at lower costs, a factor which will not go unappreciated in the decision making process.

Source: NTR Guadalajara

GM not leaving Mexico

Tereso Medina Ramirez, General Secretary of the National Union of the Automotive, Metal-mechanic and Steel Industries, affirmed that General Motors will never leave Mexico. The company has a lot of plans for growth and expansion; moreover, Mexico must go on capitalizing on the great strengths it has a nation, such as the capabilities and experience of its labor force, which establishes Mexico as a very competitive country globally, and this is the first thing assembly companies value. Medina Ramirez also comments that he has talked to U.S. investors who are worried about the commercial relations with Mexico topic, but they are well aware that the U.S. and Mexico need each other.

Source: Zocalo

Iberdrola to invest in new plant in Nuevo Leon

Spanish firm Iberdrola will invest US$600 million on a new plant in Nuevo Leon, said the Executive President of the firm, Ignacio Galan. He pointed out that this is possible thanks to the continuously growing demand for electricity in Mexico. The plant will run on natural gas combined cycle, explained a press officer in a phone statement. The Company inaugurated the Dulces Nombres II central last November. This is a plant of 300 megawatt (MW) combined cycle, which had a US$250 million investment. Mr. Galan said that there are investment plans worth US$2 billion for the next five years.

Source: El Financiero

Sonora enters the electric auto market

Sonora will fully enter the revolution of electric vehicles, thanks to the exploitation of lithium mines in the State, using this material to supply the battery manufacturing operations of units to power cares by Tesla and Lucid Motors, assembled at the Nevada, Arizona and California plants, confirms the Secretary of economy in Sonora, Jorge Vidal Ahumada. He remembered a recent announcement from Lucid Motors, to invest US$700 million in Casa Grande, Arizona. The objective is for Sonora to supply auto parts and electronic harnesses for "Lucid Air" manufacturing, nonetheless, the State will also supply the company with industrial amounts of lithium.

Source: El Financiero

Sanhua to invest US$35 million in Coahuila

Sanhua Mexico Industry, that produces controllers and components for air conditioning, ventilation and heating system equipment, will invest US$35 million in Coahuila to expand its Ramos Arizpe plant. Chunyong Zheng, General Director of the Company, said that two production lines will be added with this expansion, increasing its staff by 300 members, with expectations of closing 2017 with 800 workers. There is no information yet on whether the Sanhua Mexico expansion in the Ramos Arizpe plant is related to reinforcing the controllers and components production for the automotive industry, or it will focus on home appliances and condensers production, which the company also manufactures.

Source: El Financiero

France, with an option to invest in Mexico

The Federal commissioner for Protection against Health Risks, Julio Sanchez y Tepoz, had a meeting with the French ambassador to Mexico, Maryse Bossiere, and a group of entrepreneurs of the pharmaceutical sector from that European Country, with the objective of strengthening ties for collaboration in the health sector. Mr. Sanchez y Tepoz highlighted the opportunities Mexico offers for the development of clinical research, while commenting on the recent agreement signed between COFEPRIS, IMSS, Mexico's Tax Administration System and the National Chamber of the Industry Pharmaceutical on this regard, which will set the bases to make good use of the capital the health sector has, in order to increase the clinical research investment, which currently totals US$13 million annually and has great growth potential.

Source: El Universal

IGB lays its first stone in Sonora

Entrepreneurs and authorities laid the first stone to the second building for the IGB maquiladora, with a US$4.7 million investment and the creation of 350 direct jobs, to escalate up to 1,100 in total, for the City of Agua Prieta, Sonora. The Mayor's office stated that the headquarters will have a 22,500 square meters surface, with a 10,500 square meters plant to elaborate heating systems for vehicles. The construction materials for this project will be purchased from local businesses, which will stand for an important economic out pour for the Municipality, thus benefiting the commerce in town.

Source: Mi Aula Virtual

Mexico goes for six new FTAs

The Mexican President, Enrique Peña Nieto, gave instructions to Ildefonso Guajardo, Secretary of Economy, to turn the Trans Pacific Partnership Agreement (TPP) into bilateral agreements with Australia, Brunei, Malaysia, New Zealand, Singapore and Vietnam. Mexico has opportunities to increase its exports of manufactured goods to this six nations group, mainly in the automotive sector. The TPP was meant to open new markets to Mexico, with vehicle imports add up to more than US$20 billion. This represents the total of the foreign automotive purchases between Australia, New Zealand, Malaysia y Vietnam, Singapore and Brunei, countries that Mexico does not have FTAs with. Singapore would have greater certainty to invest in industries such as the energy, tourism and the infrastructure sector in Mexico; while Vietnam represents a manufacturing competitor to Mexican entrepreneurs in areas such as textile, shoe and apparel production.

Source: El Economista

Mexico looking for diversification with Latin America, Europe and Asia

Chancellor Luis Videgaray affirmed that Mexico has started the works to intensify its presence, relations and commercial agreements with Latin America, Europe, Asia and Africa. He explained that, as part of the strategy of the Mexican government in the face of the commercial situation with the U.S., Mexico's presence in Latin America has been intensified, especially in Guatemala, Honduras and El Salvador. In addition, ties to nations from the Pacific Alliance -Chile, Peru and Colombia- have been strengthened. Mr. Videgaray indicated that there are also commercial agreements with Brazil and Argentina in sight. Mexico is looking for the modernization of the commercial agreement with Europe, including a FTA; and there are now more opportunities than ever with Asia regardless of the collapse of the Transpacific Partnership Agreement (TPP).

Source: NTR Guadalajara

Products from Michoacan could reach South Korea

Antonio Soto Sanchez, head of the Ministry of Economic Development (SEDECO), informed that the Government of the State of Michoacan met a Korean commercial mission, to present the commercial offer, and the competitive and logistic advantages that can be obtained when investing in the State, thus establishing communication with potential investors who visited Michoacan. Mr. Soto Sanchez underscored the vast agri-food offer in the State, in addition to the high potential of the mining sector for extraction of iron, copper, zinc and lead, highly consumed materials which Korea is currently importing.

Source: MexicoXPORT

German corporations maintain their plans in the Bajio Region

Even in the environment of uncertainty after Donald Trump's arrival into the Presidency of the U.S., Monica von Allwörden de Orozco, Germany's Honorary Consul in Leon, Guanajuato, assured that investment projects which had already been scheduled, remain unaltered. She mentions the example of BMW, which continues its plan of starting a plant in 2019 in San Luis Potosi. The projects are still ongoing and none of the plants has issued any statement about leaving or putting a brake on investment. There are currently 40 German companies operating in Guanajuato. Monica von Allwörden affirms that, with the uncertainty caused by this new U.S. administration, the only thing to do is wait and work in collaboration among all of the countries to prevent any occurrences, even laborally.

Source: El Financiero

Kia to produce vehicles in Nuevo Leon

Chung Jin-haeng, CEO of Hyundai, confirmed the plans for producing Kia vehicles in Nuevo Leon and said that Hyundai Motor (who does not have a Factory in Mexico), will also assemble cars of this brand in the same plant, as was planned. "However, we are currently assessing the prospected 400.000 vehicle annual capacity to be subject to changes", posted Reuters. Chung explained, besides, that the Group is considering to build a new Factory in the U.S., to assemble high-class vehicles.

Source: Plano Informativo

Jalisco attracts investment from automotive providers

The head of the Ministry of Economic Development (SEDECO), Jose Palacios Jimenez, affirms that automotive supply companies are keeping their projects unchanged, and they will be installing headquarters at the Industrial Park Colinas de Lagos in Lagos de Moreno, Jalisco. In this park, 20 projects from automotive supply chain companies are in process, with joint investment valued at US$1 billion plus the creation of over 4,000 direct jobs. SEDECO prospects that this State will capture FDI of roughly US$1.1 billion during this 2017, that is, an amount similar to that of 2016. Mr. Palacios affirms that the promotion to investment and market diversification for international exports, will be reinforced.

Source: El Economista

Europe: opportunity for Mexico

The possibility of having the new U.S. Government renegotiating or exiting the NAFTA, has set off the alarms in Mexico, while the European Union is looking to establish a deeper commercial relation. The Free Trade Agreement between Mexico and the European Union (TLCUEM) became effective in the year 2000 and the negotiations to update it started in June 2016 with an inaugural round in Brussels, Belgium. There was another negotiation round later on in Mexico in November and the process is expected to resume in April this year in Brussels again, even though there is no formal date yet to finalize the negotiations.

Source: Portum

Audi Mexico has the most modern stamping plant in North America

The Audi Mexico plant located in Puebla, which was built on an investment of over US$1.06 million for infrastructure, has the most modern metal stamping facilities in North America. Camilo San Martin, Product, Price and Planning Manager of the plant, underscored that the Q5 is a success story in Mexico, as it has obtained international awards from 2010 to 2014, hence transforming it into a foundation of design and a driving experience. Mr. San Martin emphasized that this factory is one of the most modern of the Group and it will have a production of 150,000 units annually. He added that there are going to be available up to 13 different car body colors and four lines of equipment to modify the exterior appearance of the vehicle.

Source: Vanguardia