Bulletin 409 - Friday, February 20, 2009

Mexico City,- The Spaniard company Industria de Turbo Propulsores (ITP) announced an investment in Mexico for US$160 million in a center devoted to design and manufacturing of low pressure turbines, to be located in Queretaro, in central Mexico. "This project would take Mexico to the 'mayor leagues' in the sector because only a few countries in the world have proved capacity in the supply of low pressure turbines", ITP's CEO, Ignacio Mataix, said in an event attended by President Felipe Calderon. Mr. Mataix said that ITP's "strategic purpose" with this investment is design and manufacture in Mexico low pressure turbines with less than 15,000 pounds of thrust, a component essential in aircraft engines, representing around 20% of propulsion. "In the first stage investment could reach US$160 million, of which 66% will be used in RD&I (Research, Development and Innovation) and one third will be spent in industrialization", Mataix added. Initially, the plan is expected to generate around 400 direct jobs and over 1,300 indirect jobs, involving more than 40 small and medium companies, technological centers and universities and it will serve to equip at least nine aircraft models.

Source: El Norte

Mexico, Distrito Federal,- Blanca Velasquez, representative in Puebla of the NGO Center to Support Workers (Centro de Apoyo al Trabajador, CAT), warned that at least fifteen women that have been affected by personnel cut will file labor lawsuits within the next few days because executives from Johnson Controls, an auto parts manufacturer, harassed them and pressured them to sign resignation letters. Ms. Velasquez warned that there could be a new personnel cut in the next few days because, she says, the company located in Bralemex Industrial Park is planning to reduce its labor force from 800 to only 300 workers. Johnson Controls is a US Company that manufactures ca seats for firms such as Volkswagen, Ford, Chrysler and Nissan. Blanca Velazquez said that the argument claimed by the employer for personnel cut was the economic crisis in Mexico and the drop in auto sales by Volkswagen de Mexico.

Source: Noti-Ina

Tokyo,- The Japanese manufacturer Isuzu will open its first plant in Latin America -in Cuautitlan, near Mexico City - where they are planning to start producing medium size 4-ton trucks next spring. Up to now all vehicles sold by Isuzu in Latin America were either produced in Japan and shipped here, or assembled by the US Company General Motors. At the beginning, Isuzu's Mexican Plant will produce 600 units per year, but plans are to reach three or thousand trucks, which would cut down costs. In spite of current economic crisis and its effects on the automobiles sector, Isuzu considers the need for infrastructures in Latin America as an opportunity for a strong demand of their products in the region.

Source: El Financiero

Jalisco, Mexico,- Honda, the Japanese automobiles assembler, confirmed that investments forecasted for their plant located in El Salto Industrial Park will remain frozen this year. Ruben Resendiz, Honda's Public Relations Director, explained that the decision made by the corporation arises from the economic crisis, which has worsened mainly in the automotive sector. Even if Mr. Resendiz would not disclose the amount of investments budgeted for this year - which will not be made -, annual investment by this Company ranged between US$20 and US$30 million in the last 3 years. According to Ruben Resendiz, they had planned investing this year in some production lines and refurbish old equipment in both plants: auto parts and automobiles. Last year the Company invested US$21 million, mainly in the production of Big Red model, which is exported to the United States. "We will try to relocate people in other activities, but for the time being, even if we are very paying close attention to what is going on, we have not modified our expectations yet", he said.

Source: El Norte

Monclova, Mexico,- Takata Plant in Guadalajara, which employs one thousand 700 workers will transfer their operations to Acuña, Torreon, Monclova and Frontera, all four cities are in the State of Coahuila. Takata Mexico's Operations Vice-president said that the decision to relocate was made due to the economic recession and they are looking for better operation conditions and lower costs by operating from Coahuila, where they have plants with enough space for the machines. He said they would bring to Coahuila the airbags cutting and sewing line they currently have in Jalisco and will gradually start hiring, as of next September and October, the labor force they will require to operate the plants. Jobs to be generated by Takata in Coahuila will be 800 for Monclova and Frontera, 700 for Acuña and 100 for Torreon, the Vice-president informed, who further said that recruitment will be gradual.

Source: Vanguardia

Monterrey, Mexico,- As part of their global strategy to have production equipment near customers, Danfoss will relocate a complete expansion valves production line from headquarters in Denmark to their factory in Apodaca, to which purspose they will invest MEP$200 million. Michael Breumso, CEO for Danfoss México, pointed-out that out of the MEP$200 million being invested a significant part accounts for machinery transfer and installation and another part for new machines purchased to complete their assembly line, which measures around 40 meters. The new investment will more than double the capacity to manfuacture expansion valves in Danfoss Mexico, located in Miguel Aleman Highway and will employ between 40 and 50 specialized people when operating at full capacity. Danfoss is the largest industrial group in Denmark, with annual profit for €2.605 billion and close to 22 thousand employees around the world (close to 650 in Mexico).

Source: Vanguardia