Chrysler, first to request support
Mexico City,- The Assembler is planning to make use of the money offered by the government to companies in technical stoppage. Out of the five assemblers which have or have had technical stoppages in Mexico in some of their production plants, only Chrysler officially raised their hands to ask for aid from the Federal Government as part of the Agreement in Favor of Families' Economy and Employment.
Manuel Duarte, Chrysler Mexico's spokesman, assured that "everything that may provide support is welcome", and considered the announcement positive for the assembler he represents.
Chrysler has two production plants, one in Toluca, State of Mexico and another one in Ramos Arizpe, Coahuila, of which the former will restart operations next Monday, after being one month idle.
Last week President Calderon announced MEP$2 billion will be available for exporters that resort to technical stoppages.Kellogg's will nurture production
Mexico City,- It will be next May when Kellog's inaugurates its new plant in Mexicali, their fourth factory in Mexico which, in a first stage, will be ready to produce four cereal lines.
José Francisco Ríos Fernandez, Corporate Affairs Manager Mexico and Latin America, explained that the plant "means a US$100 million investment and will have a little over 250 employees, we are talking about four cereal lines and in the second stage production should be doubled, but this will depend on demand".
Pedro Prieto, Head of Kellog's Nutrition and Health Institute, said that in 2009 the Company's purposes are related to "increasing efficiencies, both in production and distribution, as well as marketing to transfer advantages to consumers. In times of economic depression orienting benefits to consumers is very important".Electronics distributor will transfer part of its operations to Mexico
Dallas,- Avnet, a company devoted to electronics distribution, announced today they will close one of their warehouses in Texas to transfer to Mexico its operations, which employ 370 people.
Avnet, based in Phoenix, Arizona, said they will close within the next 18 months their facilities in Grapevine, to take electronics distribution and light assembly to a plant being built in Nogales, Sonora, Mexico.
The Company had already considered making this move, but economic conditions accelerated the closing of their facilities in Grapevine - a Dallas suburb - said Michelle Gorel, Communications Vice-president for Avnet.
A large number of these jobs will now go to Mexico, but around 20 positions will be transferred to Chandler, Arizona, Gorel explained.
Avnet is a company devoted to electronics distribution and light assembly, with 45 logistics premises and 300 locations around the world.Monterrey-based company purchases Delphi plants
Monterrey, Mexico,- Katcon, a medium size company addressed in Santa Catarina, which manufactures catalytic converters and exhaust systems for automobiles, has taken advantage of Delphi's current situation and agreed on purchasing five plants located in Poland, South Africa, China, India and Australia.
Delphi, the auto parts transnational manufacturing company, will also sell to Katcon two technology development centers, one located in Luxembourg and the other one in Michigan, United States.
The operation is valued in around US$17 million, which the Company will pay with its own resources and will allow Katcon doubling their production capacity, serve new markets, go from 150 to 400 jobs and be one of the few SMC's in Mexico with global operations.
Only 40% of Delphi's employees in these business units will keep their jobs, the remaining will be laid off; but there will be a minimum adjustment in the number of blue-collar workers.Three petrochemical plants being built in Veracruz
Mexico City,- With Brazilian and Swiss capital, last Saturday the construction of three .new plants started in Cosoleacaque, a Petrochemical Complex located in the State of Veracruz, Mexico. More than one thousand jobs will be generated in these plants.
This was informed by Alfredo Anaya, Chairman of Alfa-Omega Council, at the end of a meeting held with Veracruz Governor, Fidel Herrera Beltran. Anaya informed that one of the plants will produce methyl methacrylate, another one will produce sulphuric acid and the other one will produce ammonium sulphate.
He said that, taking into consideration the global financial situation, they will follow-up on these projects, "because we will continue striving for this country and will continue investing in anti-crisis programs implemented by President Calderon and Governor Fidel Herrera".Cuetara will inaugurate a new plant
Monterrey, Mexico,- By mid February, Cuetara will start producing crackers in their new plant in .Garcia, Nuevo Leon, where they have invested around US$60 million.
70% of the Plant's production will be sold in northern Mexico, and the remaining 30% will be exported to the USA. In the first stage the Plant will have around 90 people operating the first production line in three shifts.
The second stage is expected to start operating within 6 months in another building; by then, the Company is expected to have around 900 employees, including production, distribution, sales and administration areas. Among Cuetara's distribution channels there are self-service stores and wholesalers.
This 75 years-old company, has around 30% share of the market in Mexico, with the largest presence in central and southern Mexico, and two plants, located in Veracruz and Mexico City.MEXICO'S WEEKLY HEADLINES
- -- Nafin gives 10 million to Automotive industry
- -- Vitro supports expenses opposite to crisis
- -- Fersinsa will invest in new technologies
- -- BGI confirms Mexico fits of personnel of the company
- -- LG will strengthen operations in North America
EDITORIAL
A MEXICAN'S VIEWPOINT: Obama and Mexico
It is a reality that President Elect Barak Obama does not have deep knowledge or experience on migratory issues and the relationship with Mexico. His interests, I think, are still more focused on Europe and the Middle East, for obvious reasons. As I once heard: a simple example will be enough... During his tenure in the US Senate, he was close to Illinois people, including Mexican-American communities, in addition, during his campaign his international interests were mainly focused on improving relations with Europe and getting familiar with the current status and situation of the war in Irak. Proof of this is that he made trips to these two regions during his presidential campaign.On the other hand, China has higher priority for Obama than Mexico and/or Latin America, mainly due to large population in China and India. For the US Government everything rests on interests. Let us not forget that among their interests there is the fact that the US import more petroleum from the Middle East and the Western Hemisphere than from Mexico and if we add to this that Mexico has not found new oilfields and that it has kept a restrictive policy as far as private and/or foreign investment in the hydrocarbons sector is concerned, things do not look very promising and relations with Mexico, I think, will continue to be "limited".
Unfortunately, "stereotypes" some US politicians have of Mexico, such as social disparities, lack of safety, poverty and corruption are stereotypes that come from people who know little about our country. Barak Obama does not know much of our country yet and I hope to be wrong about stereotypes in a large number of US people and politicians and that Obama is not included among them.During primary campaigns in the State of Ohio, he talked about renegotiating some NAFTA chapters; in his speech he mentioned his intention to incorporate into NAFTA stringer labor and environmental conditions. You need not be too smart to infer that he is talking about Mexico and not Canada, even if Canada is a NAFTA country.
When taking oath as President of the United States of America, Obama will have the benefit of a Democrat Congress, i.e. Democrats majority. It is no secret to anybody that democrats have traditionally been "opponents" to Free Trade Agreements, as was the case with Colombia. The economic aid we receive from the US Government is meant to fight drug trafficking.US currency comes into Mexico mainly through Foreign Direct Investment and remittances sent by Mexicans working in the USA. More than 70% of our foreign trade is with the USA and Mexico is therefore the less diversified country in the world, even if it is also the country with the largest number of Free Trade Agreements.Within a positive and optimistic view, I think that in the new Obama Administration, he will change his speech about renegotiating Agreements which he used during his presidential campaign, because this would bring more problems than revisions to the Agreements. This applies to both Canada and Mexico. In our case revisions would mainly deal with Agriculture Chapter. If he does not, Obama will be forced to contradict his speech and maybe find some "adjective" or semantics to avoid attacking and directly opening NAFTA for a revision by all three countries, because this could lead to a full restatement of NAFTA and it could even be cancelled in an extreme situation, under current circumstances of the financial crisis in the USA and the whole world.
I also consider that both, Senator McCain and President Obama would have priorities other than Mexico or even Latin America.President Elect Obama will have to resort to all his political wisdom or "cunning" to negotiate in the Senate political trade issues he wants to implement to benefit workers. His previous "opponents", such as Senators Hillary Clinton and John McCain will be now his main allies to obtain support in the US Senate.
The USA has taken a huge step in their history by electing for the first time an African American President. Mexico, in the almost two years of President Calderon's Administration has not defined yet a concrete agenda with our main trade partner. The question we must make ourselves is: What do we want to achieve with the US Government? Especially 15 years after the enforcement of NAFTA. It is a good time for both presidents to define a concrete agenda between both countries and start another type of relationship. My attention is drawn to the fact that almost two years after starting his administration, President Calderon has not made an official State Visit to Washington. President Clinton, as a matter of fact, only came to Mexico in a State Visit during the second part of his administration.We hope the turning point of a new administration be the start of a strategic agenda defined between Mexico and the United States. After all, there are several pending assignments between both nations.
By: Samuel Peña Guzman (samuel.pena@nuevoleon.gob.mx)(*) THE AUTHOR IS ATTORNEY AT LAW GRADUATED FROM TEC DE MONTERREY -ITESM-, WITH A MASTER'S DEGREE IN INTERNATIONAL LAW (LL.M) FROM AMERICAN UNIVERSITY, WASHINGTON COLLEGE OF LAW AND A MASTER'S DEGREE IN PUBLIC ADMINISTRATION (MPA) FROM THE GEORGE WASHINGTON UNIVERSITY. HE HAS BEEN INTERNATIONAL LAW PROFESSOR IN NUEVO LEON'S PUBLIC UNIVERSITY, UNIVERSIDAD AUTONOMA DE NUEVO LEON -UANL. HE IS CURRENTLY HEAD OF FOREIGN INVESTMENT OFFICE FOR THE STATE OF NUEVO LEON GOVERNMENT, HE IS MEMBER OF THE MEXICAN COUNCIL FOR INTERNATIONAL AFFAIRS, CONSEJO MEXICANO DE ASUNTOS INTERNACIONALES (COMEXI). OPINIONS EXPRESSED HEREIN ARE THE AUTHOR'S EXCLUSIVELY AND DO NOT REPRESENT THOSE OF THE INSTITUTIONS TO WHICH THE AUTHOR IS LINKED.
