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Bulletin 718 - Friday, July 3, 2015


Yong San Company will be installed in Coahuila

The Korean Yong San Automotive Company Mexico, manufacturer of parts for automotive interiors, announced the installation of a new plant in the Santa Maria Industrial Park, in Ramos Arizpe, Coahuila, with a US$24 million investment, and the creation of 800 jobs.

Hyung Sup Kwak, CEO of Yong San in Mexico, said that despite some obstacles, a decision has been made to install this plant in the Southeast Region, with the support of local authorities. The plant located in Ramos Arizpe will specifically supply the new Kia's facilities in the municipality of Pesqueria, in Nuevo Leon.

Source: Zocalo Saltillo

Tlaxcala attracts an important foreign investment

Tlaxcala has attracted 20 companies with projects that will generate up to 5,000 direct jobs in the coming months. From January 2015 to date, the State reached the US$250 million record of foreign investment, mostly from the auto parts sector.In addition to the above, Tlaxcala is prepared to receive new investment, since it has new industrial parks and is developing new industrial poles.

Source: ABC Tlaxcala

Fujikura Automotive announced its Plant 2 expansion in Coahuila

Jose Antonio Alvarado Corona, Vicepresident of Fujikura in Piedras Negras and Gilberto Rodriguez Sanchez, Operations Director of Plant 2, announced the expansion of this plant, where US$4.1 million will be invested and 500 people will be hired, building up to the 4,000 employees that are currently working at Plants 1 and 2. This expansion will manufacture electrical harnesses for various automakers operating in Mexico.

Source: Automotores.mx

Automotive "boom" is coming soon: AMIA

The automotive industry will broaden its participation in the North American market by 2020, remarked Eduardo Solis, President of the Mexican Association of the Automotive Industry (AMIA). This, regarding the exponential growth projected within the next five years, with expectations of 5.1 million units produced. Mexico is currently the fourth global exporter with a 2.4 million vehicle output, but it will reach 4 million vehicles by 2020. This momentum has also yield historic commercial records, with revenues of US$12.33 billion in the first quarter of 2015, which stands for "a spectacular takeoff," Solis said.

Source: El Economista

Mexico, the most attractive country to invest in the energy sector

The French energy group Engie said Mexico is the most important country for new investment and announced their participation in the tender to be offered with the energy reform, with assets of nearly US$3 billion. Philippe Delmotte, General Director of Engie Mexico, said the company is preparing three projects to participate in tenders that the Federal Electricity Commission (CFE) will carry out in three power plants, with an investment of approximately US$1 billion each. Mr. Delmotte said the natural gas project under construction "Los Ramones", celebrated with Petroleos Mexicanos (Pemex), is considered the most important of the past 400 years. Engie will operate the pipeline with a required investment of US$1 billion, with a transport capacity of 2.1 billion cubic feet of gas. He said the starting point of this strategic project is San Luis Potosi to reach Apaseo el Alto, Guanajuato, and it is expected to start operations in late 2015. There is also the energy extension project, the "Mayakan", which investment is nearly US$100 million in the Peninsula of Yucatan, to supply natural gas to the region for the generation of clean electricity and transport capacity of 300 million cubic feet per day.

Source: cronica.com

Foreign investment doubles in Chihuahua

The State of Chihuahua has secured a US$2.18 billion FDI for 14 industrial projects presented during 2015, doubling last year's amount of US$1.15 billion. The projects involve the creation of 11,742 jobs. Manuel Valles Russek, Secretary of Economy, said that these investments are being exercised mainly in the cities of Juarez, Chihuahua, Meoqui and Nuevo Casas Grandes, and the sectors of electric-electronic, automotive and auto-parts, medical, aerospace devices, metal- mechanical and agribusiness. Ford will invest US$200 million for its factory expansion and 500 direct jobs will be created, while investing, on the other hand, US$1.1 billion for the construction of a new engine plant that will create 1,300 direct jobs. Honeywell has also announced the construction of its new Center of Electronics Excellence in Ciudad Juarez at a cost of US$25 million, with 320 new jobs. Moreover, Visteon laid the foundation stone of a technical center in the city of Chihuahua, valued in US$85 million, which will offer 1,100 new job openings.

Source: Diario.mx

Durango, ready to welcome auto parts makers

Three foreign auto parts manufacturers will invest US$150 million in Durango this year and will be installed on land that had been designated for KIA, said Jorge Herrera Caldera, Governor of the State, who explained that 1,600 hectares had been allocated for the Korean firm to be installed in Durango, but since the corporation chose to locate in Nuevo Leon, Durango's government is now looking for companies in the automotive sector to be installed in this area. Ricardo Navarrete, Secretary of Economic Development of Durango, said that in 2014, foreign investment of US$760 million was received, 20% from the automotive industry and the remaining percentage is from the mining and forestry sectors. Moreover, the State is offering tax benefits such as tax waivers and friendly policies for any companies interested in settling here.

Source: IndustriaMaquiladora.com

Wind energy will attract US$2 billion investment

The wind energy sector will attract annual funds of US$2 billion over the next 25 years, thus receiving the largest Energy Sector investment in Mexico, according to Bloomberg New Energy Finance, the financial information agency. Bloomberg estimated that wind power on land will be the main source of large-scale renewable energy in Mexico by 2033, beating the hydroelectric plant. The investment on power generation assets will reach US$159 billion and will add a total of 22 gigawatts (GW) to the electricity grid between 2015 and 2040, which will result in an accumulated installed capacity of 26 GW. The two regions with the greatest potential for the wind energy industry are Oaxaca and Tamaulipas and their surrounding areas, with a capacity factor of 45% on average (factor of typical capacity is between 20% and 40%).

Source: Manufactura

Hidalgo will receive investment of auto-parts manufacturer

The State of Hidalgo prepares to receive an investment of US$33 million for the creation of an auto-parts distribution center which will generate about 500 direct jobs. The company┬┤s name will not be disclosed yet, said Jose Pablo Maauad, Secretary of Economic Development of the State. The investment of this company adds to Frialsa's US$20 million project to install its distribution center in the Municipality of Tepeji del Rio. Besides, the Pepsico firm has plans to invest about US$813 000 in its Hidalgo distribution center. The State is evaluating at least another 20 investment projects which could close the year with a total sum of US$333 million.

Source: T21