Bulletin 418 - Friday, May 1, 2009
New fertilizers plant in Guaymas Port with US$10.9 million investment
The US Company Gowan Group announced that in the first half of the year they will start the construction of a plant for liquid and granulated fertilizers in the Port of Guaymas, Sonora, with a US$10.9 million investment.
According to Guaymas Integral Port Administration (API), Gowan Group, which won the bidding for these facilities through their subsidiary Cortez Transfert, will import fertilizers from Alaska to distribute them in northwest Mexico and southern USA, to this last destination through international transit.
It was also informed that everything will be ready to receive the product in the last third of the year, but all of the construction stages for this terminal will be completed by the summer of 2010.
Gowan Group is the holding corporation of several companies devoted to promoting the development of products that support productivity in agriculture.
Gulfstream invests in technology for processes
Mexicali, Baja California,-
Last year Gulfstream was one of the companies that grew and invested here.
In the back of their industrial building they built another building in order to lodge new processes that take this firm to a new level of vertical manufacturing integration. Such processes are related to machined pieces, which were previously subcontracted in the United States and that at the initiative of people form Mexicali and with headquarters' approval are being attracted to local operation. Because the production of machined pieces requires more specialized processes, the company is investing in high-end equipment and machinery due to state-of-the-art technology required to produce these pieces.
In an interview, Alonso Kon, Manufacturing Technology Director, explained that pieces were previously purchased from a supplier in the United States, but three years ago Mexicali's staff decided they wanted to produce their own pieces. A US$10 million investment is estimated to be made in the equipment required for all the stages of the project.
Source: Siglo 21
Honeywell will invest US$50 million in the State of Chihuahua
Executives from Honeywell Aerospace announced yesterday an investment for US$50 million in the expansion and equipping of their plant located in "Proyecto Centenal" Industrial Park.
In this new operation several pieces will be manufactured, to be assembled in engines, auxiliary power units and special processes for Airbus and Embraer airplanes, among others.
To this purpose, the Company will bring to Chihuahua 275 specialized machines and will generated new highly qualified jobs.
In his message, Nell Esperanso, Executive Vice-president of Honeywell Aerospace Division said that the decision for expansion and permanent growth in Chihuahua was grounded on employees' capacities and qualified labor.
He informed that there are 525 workers currently manufacturing components, auxiliary devices for engines. Nell Esperanso announced they keep on expanding operations in the new plant, which will occupy 13 thousand square meters (140,000 square feet) and there will be growth in the special production area.
The State Governor expressed his appreciation for workers in
Chihuahua, because it is thanks to them that the State has attracted
new investments, such as the one made by this great company. He said
that thanks to its competitiveness and advantages Chihuahua remains
as a competitive site that provides certainty for the development of
Source: El Diario
Mailhot opened in Silao
The Canadian company Maihot finally opened their doors in the State of Guanajuato, a year after the cornerstone for their facilities was set near the Inland Port in Silao Municipality. The investment made in this plant, located in Santa Fe Industrial Park, amounted to US$10 million.
The State Governor, Juan Manuel Oliva Ramirez, said that this new plant in the auto parts sector will consolidate the work in the Inland Port. "We are strengthening the automotive sector in Guanjauato Industrial Corridor. I want to emphasize that materializing this project is proof of businessmen's trust, in spite of the dark clouds that may appear in the world's economic horizon".
16 years ago a relationship was started between two companies with different cultures, Mexican and Canadian, with the only purpose of sharing experiences in hydraulics field. "Today the most important plant in Latin America producer of nitrated hydraulic cylinder tubes is ready to start their first stage of production and employ 150 people from this beautiful region", said Jesus Nuñez Garibai, Maihot Mexico's President.
Maihot is currently one of the most important companies in the world in the manufacture of nitrated industrial hydraulic cylinders and telescopes used by several sectors.
Cisco Systems invests in Mexico
Cisco Systems, the largest supplier of networks for Internet access, announced today they will invest US$5 billion in Mexico within five years in projects in conjunction with the Federal Government.
The agreement was signed by Cisco's President, John Cahmbers, and the Mexican Ministers of Education, Alonso Lujambio, Economy, Gerardo Ruiz and Social Development, Ernesto Cordero, in an act at Los Pinos Official Residence before Mexican President Felipe Calderon.
President Calderon said that the agreement means "a powerful alliance" with Cisco to foster education, economy and social sectors.
Source: El Financiero
Spain highlights Mexico's potential to receive investments
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
MEXICO'S WEEKLY HEADLINES
- -- Vitro will invest 74 million Dls. in 2009
- -- Chrysler declares bankruptcy
- -- Government of veracruz emphasizes business opportunity with Panama
- -- Worldwide example: the coffee-production of Chiapas
- -- Seek to retain employments in maquiladoras
A MEXICAN'S VIEWPOINT: General Motors
Last week I had the opportunity of being in Detroit visiting some automotive companies which – in spite of the global crisis and the crisis being faced by the three main American assemblers (Ford, Chrysler and General Motors) – are working to outlive the crisis by staying competitive and cutting down costs in their operations, being Mexico the ideal place for their purposes. Automotive supplies for Asian and European companies will continue, provided suppliers stay competitive in production costs. In every crisis there are always opportunities.
I also had the chance to talk with some executives and former executives from General Motors and the Company’s position regarding the pressures from creditors and the US Government itself strongly called my attention.
General Motors is in dire straits; next June 1st the deadline for financial restructure expires, otherwise it will have to file for Chapter 11. Also, Obama’s Administration granted once again emergency loans to cover for guarantees granted by GM, as well as to make some payments to suppliers. There is a “double reading” in these measures, because the Government is covering at the same time any speculation of a possible winding-up by General Motors, better known as Chapter 7, assets liquidation and operations closing in US Juridical Rules; in Mexico it is known as bankruptcy. This will not happen. I am completely positive that GM will most likely file for Chapter 11 and will undergo a financial restructure, as many companies in the USA have had and are now operating normally. I am fully confident that once Chapter 11 financial restructure is over, GM will be a profitable company again and will go back to normal operations, but most likely with a decrease in the number of subsidiaries.
General Motors has been pretty smart in using the media to send messages to its stockholders, creditors, bondholders and the workers’ union, United Auto Workers (UAW), saying they will most likely resort to bankruptcy protection or Chapter 11 if they do not reach an agreement in negotiations. The hardball lies mainly in bond or obligations holders (not necessarily creditors), they do not want to accept GM shares in exchange for debt or obligations. The total amount held by bondholders is US$28 billion. On the other hand, the Union, UAW, is not willing to split in half (share the risk) the US$20 billion debt GM has for medical services retirement fund. GM has put its money on an agreement between the parties before resorting to Chapter 11; but there is pressure, not only from creditors, union and bondholders, but now also from President Obama’s Administration, who sent home former GM President Rick Wagoner. It is President Obama’s Administration that is putting the largest pressure on GM to obtain larger concessions from GM’s bondholders. As a matter of fact the involvement from the Federal Government in General Motors’ management and decisions called my attention; it seemed as if there was a full government intervention; I hope this is only temporary during the current crisis.
At the end of the day, I do not consider a financial restructure is bad. Under Chapter 11, the bottom line is achieving healthy finances, which means keeping good assets, such as to continue manufacturing and selling Chevrolet, Cadillac o Buick vehicles; however there are some brands, such as Pontiac, which experts call “toxic assets” that will be sold and will be part of the collateral damage brought by GM’s filing Chapter 11. I am convinced this will be a quick process which will give birth to a new General Motors, a lot stronger and efficient and will lower production costs. At General Motors they are all aware that the longest the bankruptcy proceedings last the largest the damage to their brands, affecting sales, of course. However, there will be many legal proceedings filed against GM by suppliers and dealers, which are not included in the bailout by the Federal Government. Also, suppliers’ network will turn to Asian and European manufacturers to survive the crisis being suffered not only by GM but by Ford and Chrysler as well; but there are higher possibilities they will go bankrupt before General Motors does.
(*) 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.