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Bulletin 708 - Friday, April 10, 2015


Iberdrola invests US$1 billion in Mexico

The Spanish power company, Iberdrola is currently investing more than US$1 billion in various energy projects in Mexico, said Ignacio Sanchez Galan, President of the Company. He noted that the prospects of the company in Mexico are "to grow and make the most out of opportunities arising from the energy reform launched in the country". He remarked that in Mexico, two new combined cycle plants and two cogeneration power plants are being built, in addition to the recent expansion of third plant. There are also two wind farms under construction, and the portfolio of projects in the country amounts to almost 900 megawatts. Mr. Sanchez explained that the new subsidiary will have assets worth about US$31 billion and will generate a net profit of US$570 million.

Source: El Economista

Mexico leads in attracting automotive investment

Mexico received US$9.3 billion for expansions and new plants between 2011 and 2014, positioning it as the country to attract the most automotive investment in the Americas, according to a report from the Bureau of Automotive Research and Vehicles of the Odette Business School, University of Windsor, in conjunction with the Association of Manufacturers of Automotive Parts in Canada. The U.S. ranked second with US$7.7 billion and Brazil in third with US$7.6 billion. While Canada attracted only US$180 million to upgrade existing plants. Besides, in less than a month, an announcement by Toyota to invest in a new plant in Mexico is expected. According to the Japanese financial newspaper Nikkei, this plant will be located in the State of Guanajuato, it will begin operations in 2019 with a maximum production capacity of 200,000 cars per year.

Source: Diario.mx

Toyota prepares opening plants in Mexico and China

Toyota Motor will invest US$1.3 billion in the construction of two new automobile plants in Mexico and China. The new plants will increase the annual production capacity up to nearly 300,000 Toyota vehicles, of which 200,000 were made in Mexico and up to 100,000 in China. A Toyota´s spokesman said that this plant will be built in the State of Guanajuato, it will produce a new version of the Corolla sedan for the North American market as of 2019. This is the first Toyota´s passenger car factory in Mexico, where there is currently a small plant that produces less than 100,000 Tacoma pickups per year. The new plant in China, will be located in the city of Guangzhou, and will produce up to 100,000 subcompact Yaris annually as of 2018.

Source: El Economista

Medline expands its plant in the Oradel Industrial Park

Medline completed the construction of its second expansion at the Oradel Industrial Park in Nuevo Laredo, Tamaulipas, with 225,000 additional square feet. This leader in medical products began operating this new area of infrastructure in late March, expanding their staff to 1,800 direct jobs. After the arrival of Medline to the city in the early 80s, the company began manufacturing in these premises in 2002, in an area of just 21,000 square meters. Currently, the company holds a 59 thousand square meters area and is the largest manufacturer and distributor of medical supplies funded by private assets worldwide, counting with more than 12,000 employees and operating in over 25 countries.

Source: El Maana

Mexico Makes Landmark Pledge to Cut Greenhouse Gas Pollution

Mexico has pledged to unilaterally peak its greenhouse gas emissions by 2026 in a detailed climate change plan that is the first of its kind among developing nations. The target unveiled Friday, which also calls for cutting carbon 22 percent below business-as-usual levels by 2030, will become Mexico's official contribution to a global climate change accord. "Mexico's target to peak its emissions by 2026 and drive them down thereafter is a landmark step in the global transition to a low-carbon economy," the White House said in a statement. "We hope that Mexico's actions will encourage other economies to submit plans that are ambitious, timely, transparent, detailed, and achievable."

Source: Scientific American

Bancomext stressed out the opportunity to increase the automotive industry potential

The National Bank of Foreign Trade (Bancomext) forecasts a 20% growth of automotive investment due to increased confidence in the country and recently announced new projects by major automotive OEMs.

The institution reveals that only in 2014, the credit granted to the automotive industry grew 31% reaching US$862.6 million. According to the Development Bank, Mexico remains an ideal platform for European, Asian, American auto assembly firms to produce and export, thanks to its trade policies, a strategic geographic location and skilled labor. Bancomext maintains that the automotive sector is one of the major industries in the country, offering visible and attractive opportunities to invest in small and medium enterprises. However, Bancomext recognizes that its greatest challenge is to link large Mexican automotive export companies with small and medium businesses through supply chain. In 2014, the automotive sector was placed as the largest foreign exchange earner of the country with just over US$109 billion and it recorded a peak production of 3.2 million light vehicles. This has made Mexico the first in exporter of light and heavy vehicles in turn; sixth in auto parts production, and it's also the main supplier to the U.S. market. It is estimated that by 2020, about 5 million light vehicles will have been made, prompted by these new investments that major automakers have announced recently.

Source: Red Financiera MX

Korean private initiative is interested in Coahuila

Gerardo Garcia Castillo, mayor of Monclova, commented during an economic promotion tour in Korea that some automotive executives are interested in investing in this Coahuila city. The State Governor, Ruben Moreira, along with secretaries of Economic Development, Rural Development and Education, as well as the Monclova and Piedras Negras' mayors, Gerardo Garcia and Fernando Puron, respectively, visited some Korean factories and participated in the automotive OEMs seminar held in Seoul, Korea. Mr. Garcia reported that 6 Korean companies: Kama, Swaying, Namil, Austem, Daeil and TSR, are interested in investing in the Central Coahuila Region, which creates expectations for a positive outcome to this promotional tour.

Source: Vanguardia