Bulletin 460 - Friday, March 5, 2010

MADRID(Reuters), - Mexico wants to give impulse to its delayed infrastructure plan and is looking for potential private capital investors, particularly from Spain, Oscar del Buen, Infrastructure Sub-secretary in the Ministry of Communications and Transportation, declared last Wednesday. Mr. del Buen, who manages close to 20% of the US$250 billion allocated in the Mexican Infrastructure Program for 2007-2012 period, said that the Government has implemented several initiatives to attract more foreign investment. "Spaniard companies have become world leaders in public-private associations for infrastructure projects", Oscar del Buen said in a meeting with representatives from business associations and members of the press. "We are eliminating investment inhibitors and have modernized the law for public-private associations", del Buen said. He added that, taking into consideration scarce financing in markets, the Mexican government will offer in certain conditions the required financing required by private sector to bid for projects.

Source: CNN Expansion

Tokyo, Japan,- The World Bank (WB) said today that Mexico is an example of the impulse given to economic growth and jobs generation by simplifying proceedings to open new businesses. A reduction of red tape has led to a five percent increase in newly registered companies and employment growth of almost three percent, Yara Salem, Private Sector Development Specialist at World Bank, declared. "On average, reducing business-related processes by ten days leads to a 0.4 percent economic growth, and sometimes even more", she said in a seminar organized by the Asia Pacific Economic Cooperation Forum.

Source: El Financiero

Guadalajara, Mexico,- A US$5 million investment in their expansion process, in addition to 25% increase in production and a rebound in their labor force, those are the expectations Carestream Health has for 2010. In May 2007, this Canadian company purchased Kodak Health Division, specialized in the production of x ray films. Their labor force was made up by 350 employees then; the company currently has 536 jobs and could close this year with 580 people. They would rather be cautious and not disclose current production volume.

Source: El Mural

Mexico City,- Alsea will take back their expansion program this year: they will invest MXP$800 million to open 59 new units in all the countries where they operate, of which almost 60% are Starbucks coffee shops and they remain open to new acquisitions. Jose Rivera Rio Rocha, Alsea Chief Corporate Management and Finances Officer, informed this in an interview and explained that they are forecasting a rebound in 2010, even though "nothing to celebrate yet". This is due to the fact that last January and February they still posted figures that compare below those in the first two months of 2009. He explained that openings to take place this year are twice as much as last year's, with twice as much investment too. As a matter of fact, they closed last year with 23 new units in net figures, because they closed and relocated some restaurants.

Source: BASE

Mexico City,- Grupo Kuo will invest US$90 million this year, mainly in their consumption business including their joint venture in Herdez-Del Fuerte. But they are also planning to start growing in aerospace and nanotechnology sectors. Juan Marco Gutierrez Wanless, CEO, Kuo, said in an interview that the investment to be made this year is higher than the one made in 2009, when they spent US$60 million. The amount will be larger this year because it is expected to be better than last year. "At least, that is how it looks in the first months of 2010 when compared to the beginning of 2009", he said. Their investment in consumption business line, -- their joint-venture with Herdez-Del Valle - will concentrate in the construction of a distribution center in Teoloyucan, State of Mexico, to optimize products handling. Also, in their pork business line they will double production capacity of their slaughter house.

Source: BASE

Mexico City,- Asian assemblers of low-cost cars will dispute the Mexican markets and they are therefore considering directly investing in Mexico. The India-based Tata Motors, the Chinese Geely and Chang An, as well as another Chinese company, are performing the studies required to enter into the Mexican market, Jesus Serrano, Head of Heavy and High Technology Industries Office in the Ministry of the Economy, declared in an interview. From those four companies, Tata Motors is the one which feasibility studies are in the most advanced stage to install an assembly plant in Mexico. "Geely and Chang An expressed a similar interest last year, and this year another Chinese company joined them, though we cannot disclose the name yet", Serrano said. In Queretaro, auto parts suppliers have already been informed about the interest by a Chinese assembler to establish in the State, and therefore a US$100 million investment to expand the Intermodal Terminal was announced last week.

Source: Reforma

Saltillo, Coahuila,- A company devoted to the manufacture of parts for Freightliner will be installed in Derramadero. This company will have sophisticated laser cutting equipment for their processes and will generate 220 direct jobs. Alberto Covarrubias Manrique from Grupo Offshore informed they will provide shelter services to this company, but Grupo Alianza will be in charge of building the plant, and estimated that within 8 to 10 months the building will be ready to be occupied by the company; he does not know the amount of the investment to be made. On other issues, he informed that Phillips and Turck are considering expanding their facilities in La Angostura Industrial Park. As a matter of fact a new building adjoining the one they already have in the industrial park is currently being built for Phillips. Both, Philips and Turck manufacture electronic components.

Source: Zocalo