Bulletin 450 - Friday, December 11, 2009

Chihuahua, Mexico,- Companies in the aerospace industry are arriving to Chihuahua due to labor costs, 15% to 20% below Europe or the USA, and because such labor is highly qualified, due to maquiladora industry's 40+ years experience; these companies are also attracted by infrastructure, proximity to the United States and State Government's open attitude. Manuel J. Alderete, from the Consultants Firm Alderete y Socios Consultoría Industrial S.C., said that these are the three main reasons why Chihuahua is attractive for plants in the aeronautic sector, which are not found at other states in the Mexican Republic. He further said that a businessman investing in France or somewhere else in Europe finds a significant cut in labor costs when coming to Chihuahua; he considers there are not significant reductions in other areas, because raw materials are always the same. Businessmen perceive lots of experience due to the development of maquiladora industry in the State of Chihuahua, which ensures high quality and important infrastructure, such as industrial parks.

Source: El Diario

Mexico,- Mexico is a strategic country for foreign direct investment due to its location, so close to the USA and its importance in Latin America, assured Dong-Hyung Park, General Director of Korean Government Office for Latin America. This is why, he said, Korea wants to enter a bilateral free trade agreement with Mexico, to foster growth in both countries before the economic rebound in the world. "We think of Mexico as our partner in the American Continent. That is why Korea's intention is not only selling our products, but generating value through investments and jobs generation", he said. Korea Products Show Mexico 2009 will be held, for the second time, in order to show Korea's economic development; 80 Korean companies will participate in this tradeshow.

Source: Excelsior

Mexico City,- High quality of Mexican labor to produce aeronautics components and the opportunity offered by some regions in Mexico with low manufacturing costs have influenced on Bombardier Aerospace to be interested in Mexican suppliers. Bombardier Aerospace, a Canadian company, has been surveying and analyzing several Mexican companies that may become their suppliers once the industry recovers and grows, Real Gervais, Vice-president in this company's Manufacturing Center, informed. "We have no Mexican suppliers right now, but we have approached several suppliers and will enter an agreement soon; we should have it by next year", Mr. Gervais said in an exclusive interview in Acapulco, during Aero Expo 2009, last week. Suppliers found are related to manufacturing aircraft structure parts, such as wings, fuselage and tail. Bombardier is also making a careful analysis in all of its plants to decide if there are components which manufacture could be transferred to Queretaro.

Source: El Norte

Mexico City,- Ternium Mexico, steel producer, inaugurated four industrial buildings in a logistics complex located in San Nicolas de los Garza, Nuevo Leon, as part of their infrastructure development program. Ternium informed that the investment amounted to around US$40 million and these premises will be used for steel products storage and shipment. Three of these buildings are located in their Juventud Plant and the fourth one in Universidad Plant, adding all together to 21 thousand square meters (around 226 thousand square feet) which come join Ternium's logistics platform in order to increase productivity in their chain of value. The four new buildings will generate four thousand 600 jobs, which add to the more than nine thousand this steel company already has. Automotive and home appliances industries are among Ternium's main customers.

Source: T21

Chihuahua,- A group of 90 representatives from 40 French, German, American. and Canadian companies, suppliers of aerospace plants throughout the world, will visit Chihuahua from December 8 to 11 in a business mission, Martha Lara Alatorre announced. The State Government, in coordination with Safran Group and ProMexico, invited this business mission. The event will be inaugurated on Tuesday, December 8 at 8:50 in Westin Soberano Hotel, where businessmen will hold meetings and make private visits to foreign aerospace companies already installed in Chihuahua, to analyze the possibility to make business. Safran Group, a French corporation specialized in high technology, is one of the organizations behind this event. In Mexico this corporation employs around 3 thousand 700 people in eight companies and they have announced two new companies to start operating between 2009 and 2010.

Source: El Diario

Baja California, Mexico,- "Qualitymotors has just recruited the last group of temporary workers reaching one thousand 200, to manufacture Christmas products in the next 6 to 8 months", Jesus Mendoza Reyes, Leader of Sitpme Union, informed. "This week we sent the last 200-workers group that joined the activities this company performs in two plants, one in Parque Industrial del Norte and another one in Lucio Blanco-Estacion Ramirez", he added. He explained that activities started last month and apparently will not end before March or April, when they fulfill the agreement to manufacture Christmas products for Holidays this and next years. "Products such as Christmas trees garland and stands, among others will be manufactured this year and next year they will manufacture products for Easter and 2010 Christmas", Mendoza Reyes explained.

Source: Siglo 21

Mexico,- IBM will invest US$20 million in a strategy named Project XIV, which purpose is maximizing high-tech manufacturing capacities in their Guadalajara Informatics Campus. Project XIV will give more capacity to Guadalajara Campus, which is already exporting US$1 billion in highly complex technological products to all the world, IBM informed. "In IBM we are very proud to announce this important investment in Mexico, because it increases exports from this country, promotes Mexican talent, makes this Campus more visible to the world and reinforces the experience obtained throughout 34 years of existence", Hugo A. Santana Londoño, President and CEO, IBM Mexico and Central America, pointed-out. The team assigned to this project is made up by 100 Mexican professionals specialized in projects management, manufacturing engineering, tests, quality assurance, computer systems engineering, failure analysis and diagnosis, projects design and thermal solutions.

Source: El Financiero