Bulletin 417 - Friday, April 24, 2009

Shanghai,- Mexico wants to attract investments from Chinese automobiles manufacturers, even if the economic crisis and the bad situation of automotive sector in the Unit4ed States has already frozen some Chinese plans to invest abroad. "This year we have two strong candidates that could close their commitment to invest in Mexico", which would add to FAW's project, the first Chinese assembler established in Mexico, with an assembly plant in Michoacan, Luis Vieyra, Head of ProMexico Office in Shanghai informed. Based on the Mexican Automotive Decree, FAW made a commitment in 2007 for a minimum investment of US$100 million and the assembly of 50,000 units in three years. Vieyra explained that "other Chinese companies have already started their feasibility studies to establish a factory in Mexico and we believe this year two new investment projects could be announced", even though he would not provide any details. Emillio Moss, ProMexico's Investment Projects Executive Coordinator, explained that the main advantages Mexico has for investment by Chinese companies are "its proximity to the USA, which is the largest consumer in the world" and its network of 12 Free Trade Agreements (FTA) with preferential access to 44 countries.

Source: El Financiero

Monterrey, Mexico,- Promotora Ambiental (PASA) through its subsidiary PetStar started yesterday the operation of a PET bottles recycling plant; the bottles will be converted into food-grade recycled resin for the manufacture of new food and beverage containers. The Monterrey-based company informed that the new center will have capacity to recycle around one billion PET bottles per year in the first stage and two billion in the second stage, to be converted into 20 thousand and 40 thousand tons of food-grade resin with high value added. "This plant represents a total investment of around US$35 million in its first stage and will allow PetStar to increase sales by more than 50%", Alberto Garza Santos, PASA President, said. In July 2007 the Monterrey-based company Femsa, the plastic containers supplier Alpla and Coca-Cola Company invested US$20 million in a food-grade PET recycling plant in Toluca, with capacity for 25 thousand tons per year.

Source: El Norte

Madrid,- Mexico has the strength required to be the destination for Spaniard investments even amid current economic crisis, representatives from institutions, companies and academicians concurred here today in a forum about business opportunities in Mexico. Aurelio Martinez talked about Mexico's stability by achieving an average growth between 3.2% and 3.3% in the last 15 years, and making reforms to be better prepared to face a crisis. Pedro Azagra, Development Director of the power company Iberdrola, talked about their experience in Mexico, where they are the first private energy producer, generating five thousand megawatts, equal to 14.5% of total production in Mexico and an investment of US$2.5 billion since 2001.

Source: El Universal

Ciudad Juarez, Mexico,- Lexmark, the company manufacturer of printers and cartridges, announced their plans to close one of their ink cartridges factories in Mexico, due to a drop in their income in the last quarter. Closing the factory, located in Ciudad Juarez, Chihuahua, means laying off 360 employees, of which 270 will lose their jobs in the first months of 2010. The company explained that weak global economic conditions reduced the demand of their inkjet and toner printers, and even added that they are forecasting a drop in income during the second quarter of the year.

Source: El Semanario

Chihuahua, Mexico,- As a consequence of the world recession, two plants located in the region will close with the ensuing loss of one thousand 377 jobs, according to information from the corporations. Due to the automotive crisis, Delphi Alambrados y Circuitos Eléctricos, a plant with one thousand 17 employees located in Casas Grances will lay off all of its personnel due to the definitive closing of operations there, Delphi Corporation announced. Xochitl Diaz, from Delphi, explained that Delphi Alambrados y Circuitos Eléctricos plant started operations 24 years ago in Casas Grandes, always with the only purpose of manufacturing automotive harnesses, i.e. complete wiring and electric system for new cars. "Everything within our power to prevent closing the plant was done, looking for other options to face the bad situation; for example using the spaces that were left open in other plants and make a consolidation, but unfortunately this industrial operation cannot remain open", she said.

Source: El Diario

Tucson, Arizona, - AKT altmarker Kunststoff-Technik GmbH of Gardelegen, Germany has signed a contract with The Offshore Group of Tucson, Arizona for the provision of outsourced manufacturing support, or "shelter" services in Saltillo, Mexico. The company has signed a lease agreement for the rental of 34,822 square feet of industrial space at The Offshore Group's La Angostura Industrial Park. AKT will join other German manufacturers OKE GmbH and Turck, Inc. at the site. At the project's maturity AKT will employ approximately 83 direct labor employees. The company will manufacture injected molded parts for automotive industry applications. According to Customer Business Unit Director, Roland Kluhspies, "our decision to establish an operation in Mexico was predicated on a desire to offer our customers a low cost North American solution. We have great faith in the productivity of the workforce located at The Offshore Group's interior location at Saltillo." AKT headquarters is in Gardelegen/Altmark, Germany. The company was founded in 1991 and is one of the leading manufacturers of plastic injection molding parts. AKT offers numerous products that have been further refined through finishing processes and is able to deliver painted parts, flocked parts and IMD foil parts as well as complex assembly for the interior, engine and safety and security areas. With international locations in Europe and overseas, AKT is ideally positioned to meet the challenge of global competition.

Source: Offshore Group

Mexico City,- An Alliance between Grupo Ferrominero and Singapur Technologies Kinetics will allow for the kickoff within the next 5 years of a plant to assemble Chinese equipment for construction and mining industries, in Monterrey. This will be the first of its kind and will compete against other brands, such as John Deere, New Holland, Caterpillar, Komatsu, among others, Alejandro Bremer, Project Director informed. Grupo Ferrominero is the largest Mexican company in iron alloys; it is the holding corporation of companies such as Minera Autlan, Parras, GM Electronics, CEM and GFM Real Estate.

Source: El Norte