Bulletin 459 - Friday, February 26, 2010

Mexico City.- Kimberly Clark announced investments in Mexico, which could provide impulse to the company to reach annual sales increases between 6% and 7% by the end of 2010, said Pablo Gonzalez Guajardo, CEO. During the event "Leadership Awards", where the company delivered several awards to their suppliers, he explained that investments are meant to improve technological processes in their several production plants, as well as in strengthening their sales channels. "In 2010 we are going to face very significant challenges, quite different from those faced last year. These will be challenges related to economy's performance, some of the supplies we purchase and our competitors", Mr. Gonzalez Guajardo said.

Source: El Informador

Cancun,- After a drop of almost 40% posted in 2009 by automotive industry in Quintana Roo, Grupo Peninsular Automotriz Montejo (GPAM) is starting the year opening the first Mazda dealership in Cancun. This dealership, Mazda's 29th in Mexico since they started operating here in October 2005 and GPAM'S second in Yucatan Peninsula (Merida) - represented a MXP$30 million investment and the generation of 40 jobs. Mazda Motor de Mexico is expecting to close 2010 with 32 dealerships throughout Mexico. Plans are to open three more dealerships this year in Acapulco, Cuernavaca and Tuxtla Gutierrez. A spokesperson informed that after a little over four years operating in Mexico, Mazda is eighth in cars sales, having sold 18 thousand 900 vehicles in 2009 and expecting to sell 22 thousand units this year.

Source: El Financiero

Guadalajara, Mexico,- In a project which required US$20 million investment, IBM officially inaugurated yesterday the facilities where XIV Storage System is manufactured. Production started last summer in the plant located in El Salto and these equipments are already being exported to the United States, Germany, United Kingdom, Malaysia, New Zealand, India, Korea, Canada and Colombia. 100 jobs were created for this new project, specialized in management, manufacturing engineering, tests, quality assurance and systems engineering, among other areas. "This campus is recognized for its operative excellence in all specialty areas", said Eugenio Godard, IBM Campus Guadalajara Director, "and it is based on Mexican abilities and talent".

Source: El Mural

Mexico City,- Last February 15, DHL Express, courier and logistics company, started transferring their domestic operations to Queretaro International Airport, as part of their expansion strategy in Mexico. According to information provided, operations transfer to the airport will be gradually made throughout 2010, and it is expected to be completed this year. DHL - which started operating in Mexico three decades ago - further pointed-out that "during this process DHL Express will continue operating regularly". The project will have an initial MXP$70 million investment and, as per estimates from State authorities, will mean an economic contribution to the State of over MXP$100 million per year. DHL currently provides domestic services from their hub in Mexico City International Airport and also has three more exchange centers in Guadalajara, Monterrey and Mazatlan.

Source: T21

Monterrey, Mexico,- By putting their money on Nuevo Leon and Coahuila to grow after the crisis assemblers have attracted several US auto parts companies that are starting to transfer production lines to plants at these states, said Manuel Montoya Ortega Head of State Automotive Cluster Office. Also, a Japanese company devoted to aluminum injection for auto parts will also bring one of their two plants to Mexico this year, he added. "Customers in the United States recommended the Japanese to have a plant in Mexico if they wanted to stay in the North America market", he affirmed. "The trend is that many companies are bringing operations to Mexico for cost reasons, but also for high quality labor", Montoya explained. Without providing the names of US auto parts companies that have started establishing in Nuevo Leon, Mr. Montoya said that this will provide for a 15% growth in sales by auto parts sector this year.

Source: El Mural

Ciudad Juarez, Chihuahua,- Hewlett Packard, the computers manufacturer, will bring some 4 thousand jobs to Juarez, Octavio Marquez, President and CEO, HP Mexico, informed. He said that operations are being moved to this city - some of them from Foxconn in Guadalajara, as well as from elsewhere in Mexico and even from Houston, Texas - thanks to the city's geographical location and qualified labor force. "This is a strategic issue. Mexico lost manufacturing to Asia for costs reasons. Yes, manufacturing is cheaper in Asia, but we have logistics advantage for being near the United States. In addition, NAFTA (Free Trade Agreement with the US and Canada) makes things easier and faster", he said. Mr. Marquez further informed that HP Mexico will create 500 new jobs in Guadalajara in the first quarter of this year.

Source: El Diario

Mexico City,- O'Donnell, the industrial developer, informed the completion of a 23 thousand 913 square meters (257,396 square feet) spec, not built-to-suit, industrial building in the Logistics Park the company owns in Cuautitlan. These facilities are ready for immediate occupation. Among neighboring companies stand out: Kuehne & Nagel, Timken, Wal-Mart and Ford. They are all located less than a mile from Mexico-Queretaro Highway toll booth. The building is specially suitable for storage, thanks to its 9.75 meters (32 feet) minimum height and 12.5 meters (41 feet) maximum height; divisible space by up to three thousand 500 square meters (37,673 square feet); electric power and sufficient water; safe access both at the building entrance and to the park, as well as first level infrastructure and high construction quality.

Source: T21