Bulletin 439 - Friday, September 25, 2009

Mexico City,- "Clunkers" Program in the USA provided for a reactivation in vehicles assembly in the USA and practically in every factory in Mexico, which also fostered a recovery in auto parts and components production in Mexico. However, this industry does not know yet for how long can this reactivation be maintained. Agustin Rios, Chairman of Mexican Auto Parts Industry Association, Industria Nacional de Autopartes (INA), pointed this out in an interview and added that orders for auto parts and components by vehicles assemblers did have a significant increase in August and September. The industry relates this recovery to the support given by the US Government to their "Clunkers" Program, which has ended but did contribute to increase sales of new cars there.

Source: BASE

Mexico City,- Confident in economic rebound and aiming to cut down production costs by 15%, the US Company Tempel revived a US$25 million investment in their plant in Apodaca, Nuevo Leon. "With these investments we will reach 80% built capacity in this plant and we will get to 100% with the rest of the expansion program and the machinery we will bring", Timothy N. Tylor, the Company's President said in an interview. Outlook has improved in Nuevo Leon now and, in addition to making the above-mentioned investment, Tempel will close one of its plants in the State of Illinois and machinery valued in US$2.5 million will be brought to Apodaca. "Our challenge in Mexico is going back to previous activity levels and recovering lost jobs", Tylor said in the interview.

Source: El Norte

Mexico City,- After it started operating last June and being formally inaugurated in August, Pohang Iron and Steel Company (POSCO) plant, located in Altamira Industrial Park in Tamaulipas, will foster trade activities in this Port, because its production will be exported to the USA, Europe and South America. Per information provided by Altamira Integral Ports Administration, export activities by this steel company will directly participate in the increase in general cargo handled at the port, in addition to contributing to the arrival of more ships. For the time being, POSCO Plant will close 2009 with the production of 110 thousand tons of galvanized steel sheets and will reach maximum production in 2011, namely 400 thousand tons of steel per year.

Source: El Financiero

Paris, France,- The confirmation of two investments by Zodiac Group in Chihuahua, through the establishment of Weber Plant and the expansion of Air Cruisers Plant, was the outcome of the meeting held today by Chihuahua State Governor with this Corporation's Chairman, Oliver Zarrouati, as well as Global Operations Director, Thierry Fevrier and the CEO of Interconection Systems Division, Patrice Collin. More than US$12 million are being invested in this expansion project, which will generate more than 300 new jobs in its first stage. With these 2 investments, the Company has installed five of the Group's divisions in the State of Chihuahua: Air Cruisers, Weber, ICORE, IDD and Amfuel, which currently employ more than 400 people and by 2010 they are expected to have over 700. By 2012 the labor force is expected to reach one thousand 200 jobs, based on products' demand.

Source: El Diario

Monterrey, Mexico,- Nuevo Leon won a US$105 million investment to be made by Johnson Controls Industries (JCI), for which Sonora, Coahuila and Chihuahua were also competing. Rodrigo Pavon Gutierrez, Strategic Projects Director for JCI in Latin America, said that an automotive batteries recycling plant will be built in Garcia Municipality, which will join a similar plant already located in the State of Nuevo Leon, in Cienega de Flores. "We analyzed other options: Sonora, Chihuahua and Coahuila, but it was here where we found the best terms. As a matter of fact Garcia's City Council solved everything very quickly", he said. He said the plant, with capacity to process 12.5 million automotive batteries per year, will start operations in September 2010 and will employ 250 people. "In Cienega de Flores plant we may recycle 50% of all accumulators produced in Mexico and with this other plant we will have the remaining 50%", Pavon said. Throughout Mexico, JCI has four plants where they manufacture automotive batteries; two of them in Nuevo Leon - Monterrey and Escobedo - another one in Celaya, Guanajuato and one more in Torreon, Coahuila.

Source: El Norte

Mexico City,- Marc Alain Moesgen, Chocolate Division Vice-president for Nestlé Mexico, explained that these facilities will serve for product research and improvement, and will have a positive impact on all countries where cacao is produced, because they will be enabled to produce better raw materials. "They will have first quality cacao, which will bring along the consumer's preference, because customers are looking for increasingly refined chocolate", he said. In an interview he said that the Center will allow working in agronomic development to optimize cacao and other technologies, including propagation, as well as industrial processing to perfect the final product.

Source: El Informador

Tijuana, Mexico - Tijuana City Council announced yesterday that the Chinese company Kunshan Eson Precision Engineering will establish in Tijuana and start operating next December. A press release informs that said Company specializes in manufacturing ironwork and structures supplied all over the world to companies such as Sonny and Motorola, among others. Last April 1st, Jorge Ramos Hernandez, Tijuana City Mayor, visited the Company's headquarters in Kunshan, China, heading a group of Tijuana businessmen, and offered them fiscal incentives and other facilities to establish in Tijuana. "Even if this corporation is the first one to install as a result of this promotion trip, it will certainly not be the only one, because an automotive company from Changchun and a solar panels company are also planning to open plants in Tijuana", the press release assures.

Source: El Norte