Bulletin 438 - Friday, September 18, 2009

Mexico City,- Before the complex economic outlook, Kimberly Clark de Mexico is planning to keep in US$100 million their annual average investment, which could even be increased to US$400 million a year if structural reforms proposed by President Felipe Calderon are approved and if economy shows tangible improvement signs. This outlook is "a good result considering circumstances", Claudio Claudio X. González Laporte, Kimberly Clark's Chairman of the Board, said in an interview. Kimberly Clark, manufacturer of personal care and hygiene products, had an 8% year-to-year increase in sales and 14% increase in profits during the first half of 2009, by anticipating to the financial crisis with costs adjustments. "We saw the crisis was coming and decided to cut down costs; invest in more efficient processes, accelerate our innovation process, because we knew we would be forced to a stronger competition in a market that, in the best scenario, would stagnate, as it has actually happened; and cut down sumptuary expenses", Gonzalez Laporte said regarding the Company's strategy to face the crisis.

Source: El Semanario

Reynosa.- The international corporation LG Electronics announced the expansion of their manufacturing plant here, which will provide for the generation of more than one thousand 200 new jobs in the short term, municipal authorities informed. On this subject, Armando Zertuche Zuani, Municipal Minister of Economic Development and Employment, said that LG Electronics will spend more than US$100 million in this expansion project. He said that the accrued investment by this Company in Reynosa adds to US$365 million and that the Company employs two thousand 500 workers here. He reminded LG currently has three plants in Mexico; in addition to Reynosa they also operate in Mexicali and Monterrey. "The expansion project for Reynosa Plant - which confirms the municipality's leadership and competitiveness for the arrival of world class companies - brings the investment made by this South Korean company to US$365 million, which they have channeled to increase production capacity in their plans in Mexico", he said.

Source: El Financiero

Mexico City.- With a US$370.911 thousand investment, Foton, a Chinese Company, installed the first agriculture tractors assembly plant in Coatzacoalcos, Veracruz. Bernardo Garcia Manzano, CEO and President, said the plant has capacity for 6 thousand units per year and is designed with a flexible line to produce several tractor models. "In a first stage these vehicles will be sold in the Mexican market, but as of next year most units will be exported to Central and South America", he said. Foto is part of Beiqi Foton Motor Company, a China-based trucks manufacturer, which sells its vehicles in more than 50 countries and operates 14 assembly plants in China and five overseas. Installing the plant in Veracruz generated 45 direct jobs, including construction workers, mechanics and assistant mechanics.

Source: El Diario

Mexico City.- Fiscal proposals being suggested by the Mexican Government meant to increase revenue are not wise because they would discourage investment and jobs generation, running the risk to make recession even deeper, because it inhibits saving, when it is most badly needed to reactivate Mexican economy. This is the feeling by Mexican Employers Confederation (Confederación Patronal de la República Mexicana - Coparmex), disclosed by Matamoros Business Center, criticizing the Government for pretending to increase its revenue by charging even more taxes to "captive" taxpayers, and not increasing taxpayers basis. It is important to point-out that this measure would affect investment and savings and, therefore, jobs generation. A way to taking economic growth back is keeping competitive rates on Income Tax, rates that encourage savings and investment. Increasing taxes, and therefore taking liquidity out of economy, combined with expenses cuts, could have a significant recessive impact.

Source: Expreso Matamoros

Sonora, Mexico,- A center for automotive and aerospace technology D&R, Sede Tecnológica Automotriz y Aeroespacial de Investigación y Desarrollo de Sonora, STAADIS, was inaugurated by Governor Eduardo Bours. This Center is located Instituto Tecnologico de Monterrey, Campus Sonora Norte. The building, which required an investment of around MEP $60 million (around US$4.45 million), was designed to strengthen second and third tier suppliers for automotive and aerospace industries. Due to the fact that Sonora has had for some time now an important cluster of companies in these sectors, computerized design lab, fast tagging, processes simulation, machining, instrumentation and control are all fields, among others, that will be successful and count on a decided support.

Source: Portal Automotriz

Matamoros, Tamaulipas,- "Qualitymotor will start recruiting temporary workers next week to reach 2 thousand people that will work until mid February or March", Jesus Mendoza Reyes, Sitpme Union Leader, announced. He explained that this company manufactures Easter products and therefore as of next week they will gradually start entering temporary agreements until reaching 2 thousand 200 employees. "In addition to this company, there are rebound signs in others, such as Trinomex y Ominio, which are requesting more personnel, so we are already filing around 600 positions per week", the Union Leader said. He assured that Qualitymotor has entered an agreement and will therefore offer temporary work starting this month and until around mid March.

Source: Expreso Matamoros

Chihuahua, Chihuahua.- Low operation costs, experienced workers in export manufacturing industry, proper infrastructure for education and training, several fiscal incentives and its proximity to the United States make of Chihuahua the main center to attract investment from aeronautic sector in Mexico. Officers from Cessna, Aircruiser, Labinal, Textron and Honeywell, Ron Alberti, John O'Donell, Jorge Ortega, Pete Rile and Bill Scott, respectively, said this during the Forum of Cases of Success in Chihuahua's Aeronautics Industry. On this issue, AMEAC's representative, Arturo Avila, assured eight companies in this field will soon formally start operating here. Speakers discussed the need to reinforce local chain of supply and speed out proceedings to import supplies to make the city more attractive. They announced several expansion plans and their Corporate Offices' interest in bringing more complex production processes in the short and medium terms, as well as in increasing their labor forces.

Source: El Diario