Bulletin 416 - Friday, April 17, 2009

Mexico City,- The state-owned company Petroleos Mexicanos (Pemex) informed that Tula, Hidalgo is the best site to build a new refinery, because it provides the best location for logistics purposes and the lowest costs for infrastructure and distribution of refined products to the Center-West zone, which has the highest consumption. The investment estimated for this project is above US$12 billion, because it also includes reconfiguring Salamanca Refinery in Guanajuato. Rodrigo Favela, Planning Sub-director for PEMEX-Refinacion, said that in Tula it would only be necessary to build a polyduct to link the refinery to Mexico City and expand capacity, with no further infrastructure required. Said duct would adjoin or reach very close to the new refinery and therefore there are good possibilities to save in interconnection between the new facilities and the existing premises. In addition, Tula project proved to be the most profitable in terms of Investment and Return.

Source: T21

Mexico City,- A new plant to manufacture products for pharmacological treatment, which investment will amount to US$200 million will be inaugurated in San Luis Potosi by the US Company Becton Dickinson. Becton Dickinson is also planning to expand their operations in Cuautitlan, State of Mexico and to build a new sterilization plant. With the new plant in San Luis Potosi, Bencton Dickinson will increase syringes production and will start producing cannula, catheters and hypodermic needles to serve markets demand in the United States, Europe, Latin America and Asia. Becton Dickinson established its first plant in Mexico in 1957. It currently has presence through four plants located in Cuatitlán Izcalli and Nogales, Sonora. This company generates 3,500 direct jobs.

Source: El Semanario

Monterrey, Mexico,- The economic crisis - which caused a 49% drop in steel production in North and South America in the first two months of the year - has forced Ternium Mexico to redefine their investment mega-project in Pesqueria, Nuevo Leon. Julian Eguren, Executive President, said that steel demand is changing and therefore the project is being redesigned and could be oriented to another products' mix, different from the one originally planned. Last September 9th, Ternium announced they would invest US$4.2 billion in the next five years in the construction of two steel plants in Pesqueria, Nuevo Leon, the largest investment by a private company in Mexico, outside the financial sector. However, a drop in steel demand started in mid September to reach current 50% levels. "We are redefining the project now, based on this new demand.

Source: El Norte

Mexico City,- During 2008 Foreign Direct Investment (FDI) fell down 20% in Mexico and most of it was reinvestment or use of accrued profits, outdoing new investments. Coahuila and Durango stood out for an increase in foreign capital received. Coahuila reported a 431.53% increase in foreign capital flow, closing last year with US$952.5 million; while Durango achieved a foreign capital growth rate of one thousand 230.95 percent. The report points-out that productive activities received the largest flow of foreign capital in both states, and the profile of companies that decided to establish there is not known. This is relevant because Durango has started recovering in the last few years with the arrival of new companies, mainly in the industrial field, which has been improving employment and salaries in the State.

Source: El Norte

Mexico,- In the first quarter of 2009 Volkswagen sold 25 thousand 833 units in the retail market, achieving a 22.7% share of the Mexican market and assured with it the first place in sales in passenger vehicles segment. In its monthly report, Volkswagen informed that last March they ranked second in sales of passenger vehicles in Mexico, selling eight thousand 365 vehicles, achieving a 22.2% share of the market in said month. The press release points out that sales of new Gol and Gol Sedan models have been a success; only last month one thousand 684 units were sold.

Source: Notimex

Mexico, Distrito Federal,- Zilent Mexico informed they will sell electric vehicles in Mexico and are planning to build a plant in 2012; they also informed they are expecting to have 20 dealers in the first year. Zilent is a company committed to the Mexican market, so that customers may obtain immediate benefits and substantial savings with 100% electric cars", the Company pointed-out. Zilent models are completely electric and do not use any other fuel, only electric power; they may be connected to a conventional plug and, according to the Company, there are fiscal incentives for these non-polluting cars. To start with, they are considering selling 100 units made in China with Canadian technology.

Source: Portal Automotriz