Bulletin 429 - Friday, July 17, 2009

Mexico,- The Ministry of the Economy is calling interested companies to present high technology projects meant to improve competitiveness in electric, electronic, auto parts, automotive, aeronautics and metal-mechanics industries. The Ministry pointed-out that the purpose is channeling the resources of the Program for the Development of High Technology Industries, Programa para el Desarrollo de las Industrias de Alta Tecnología (PRODIAT) for Type A Projects, to foster technological development and support production sector amidst the economic crisis. Said call was published today in the Federation's Official Gazette and projects that receive the support are expected to be able to solve market failures in the aimed sectors.

Source: El Diario

Mexico City,- The electronics manufacturing firm Jabil, which produces in Mexico Blackberry cell phones, far from being hit by the economic crisis is forecasting a 30% increase in exports this year and an additional investment for US$60 million for the expansion of their plant in Guadalajara. Oscar Acosta, CEO for the company in Jalisco, acknowledged that in the 12 years the company has been here they have sorted out domestic, international and technology industry crises. This US-based corporation currently has plants in Chihuahua, Jalisco and Tamaulipas, which generate more than 20 thousand direct jobs of which 8 thousand 600 are in Guadalajara. Only in Jalisco they provide services to 15 companies and are always looking for new business opportunities, such as attracting a new medical equipment line before the year is over and for the medium term they are negotiating the production of security systems for the US market.

Source: El Norte

Saltillo, Coahuila,- Technotrim will hire 400 new workers for their Monclova Plant, thanks to the new agreement to supply Kia, an automotive company, as of next September. Their plant in Ramos Arizpe, which was closed a few months ago, is also receiving maintenance because in the future, if the volume is increased and there is not enough capacity in other plants, they could reopen it. Arturo Olivares, Executive Operations Director for Technotrim North America, said that the Monclova Plant currently has one thousand 200 workers and plans are to reach one thousand 600 next September, they have already hired personnel which is in the training stage. For the time being, he added they are shipping car upholstery for 600 vehicles every day, even though they could reach 900 vehicles per day in the near future. He further said that these 400 extra workers should be working in this new Kia project by next September.

Source: Zocalo

Mexico City,- The French Ambassador in Mexico, Daniel Parfait, assured his country has full confidence on Mexico and in spite of the economic crisis several French companies will invest here. In his speech, Ambassador Parfait said that in spite of the difficult economic situation throughout the world, several large and small French companies will invest in Mexico. These investments include a plant of the aerospace sector to be established in Queretaro; Danone will make investments in central Mexico and a pharmaceutical company will build a plant in Ocoyoaca, State of Mexico to produce flu vaccines, which will give independence to Mexico on this issue. He further announced that next November an encounter of small and medium French and Mexican companies will be held here, to be attended by the French Minister of Commerce, Anne Marie Idrac.

Source: El Financiero

Mexico City,- Volkswagen de Mexico informed last Tuesday they are investing US$1 billion in the expansion of their plant in the State of Puebla, where a new model will be manufactured as of next year. Consuelo Minutti, Corporate Communications Manager for Volkswagen de Mexico, said that "the production of the new model will start next March or April 2010". The plant currently produces Jetta, Bora and New Beetle models, most of them for the export market. The Company's commitment comes amidst a collapse in cars demand all over the world. In Mexico, which exports to the United States most of the autos manufactured here, cars production had a 48.1% year-to-year drop in June and it has not reached rock bottom yet, the main group in the sector declared. It is not clear yet which Volkswagen model will be produced in Puebla Plant's expansion; this Plant manufactured in 2008 a record number of 450,000 units, per figures provided by the Company itself.

Source: CNN Expansion

Distrito Federal,-LG Electronics, home appliances manufacturer, will invest US$100 million in the next 3 years to reorganize their manufacturing plants, after closing their facilities in Mexicali last June, where the Korea-based company used to manufacture cell phones, which will now be manufactured in Korea and China. According to the reorganization program, the whole production of medium-size, large and premium LCD televisions will be transferred to Reynosa plan, they were previously manufactured there and in Baja California plant as well. The manufacture of smaller equipments will be outsourced to OEM, a manufacturer of original equipments in Mexico. In Monterrey, the plant which is already producing refrigerators will also start manufacturing gas ovens by the end of this year.

Source: El Financiero

Ciudad Juarez, Chihuahua,- After filing for bankruptcy in the United States and Canada, Lear will relocate operations in Ciudad Juarez, Jose de Jesus Diaz Monarrez, General Secretary of the workers union Federacion de Trabajadores del Norte (CTM), informed. The leader of this Union, which represents around 5 thousand Lear employees in Ciudad Juarez, said that according to local executive officers, Lear is also planning to bring here operations they currently have in Saltillo, Coahuila. He said that according to the company's top executives, the purpose is taking advantage of location and qualified labor, among other advantages Juarez has to offer and therefore achieve more efficient operations for a lower cost, as part of the restructure process. Diaz Monarrez added that due to these new projects and the fact that the company has reached rock bottom, they have also stopped cutting down personnel and there are no more technical stoppages in their plants here. He said that, for example, they had considered laying off one thousand people this week, but the corporation decided not to do so; quite the opposite, they are expecting to hire more personnel for the new operations.

Source: El Diario