Bulletin 471 - Friday, May 28, 2010

Monterrey, Mexico,- The Monterrey-based Oneo Group - holding company of Grupo Domos and companies in telecommunications and real estate and tourism development sectors, among others - wants to invest, between short and long term projects, around US$233 million. Javier Garza Calderon, Chairman of the Board, Oneo Group, said in an interview that the want to start a US$200 million project this 2010 to generate electric power from Aeolian and solar sources, to export electricity to the United States. Garza Calderon further said that in the next quarter the company is planning to start the construction of a new wastewater treatment plant in Zacatecas and Guadalupe municipalities, both of them in the State of Zacatecas - currently under engineering stage, as well as negotiation with trusteeship, banks, Government - with an investment for around US$14 million, to generate 506 liters per second of water to be used in agriculture.

Source: El Norte

Mexico,- Volkswagen de Mexico celebrated eight million vehicles have been manufactured here with the assembly of Bora TDI Laser Blue, which left production lines yesterday. And there are two reasons to celebrate, because from the eight million units assembled in Mexico, one million correspond to Bora model, which is assembled in Mexico since 2005 for markets all over the world. Volkswagen de Mexico is expecting to end this 2010 with a production over 400 thousand units and full occupation of their facilities, because production of their model launched as Bicentennial Car started last April. According to information from the company, production by Volkswagen de Mexico started in 1967, ever since in their plant located in Puebla VW Sedan, Safari, Brasilia, Hormiga, Caribe, Atlantic, Jetta, Bora, Corsar, Derby, Combi, Golf, Golf Cabrio, Beetle, y Beetle Cabriolet have been assembled there.

Source: El Financiero

Ciudad Juarez, Chihuahua.- The number of employees hired under subcontracting scheme in Ciudad Juarez reached 14.9%, a level never seen before, according to the last figures disclosed by the Mexican Statistics Agency, Instituto Nacional de Estadistica Geografia e Informatica (INEGI). Arnulfo Castro Münive, Head of Ciudad Juarez Maquiladoras Association Labor Committee, said that the increase in the proportion of subcontracted employees is normal during a post-crisis period, but pointed-out that it is important to look after employees' sense of belonging in each plant, because production quality greatly depends on it. The monthly report about Manufacturing, Maquiladora and Export Services Industry (IMMEX) presented yesterday by INEGI shows that out of the 178 thousand 729 workers hired until February this year, 26 thousand 694 were subcontracted. It further shows that while the number of direct jobs dropped by 2.64% in a year, the number of workers hired through outsourcing has been doubled.

Source: El Diario

Mexico.- With a US$100 million investment, the India-based company Havells SLI Lighting will build - or will purchase - a lighting products manufacturing plant, with the purpose of reaching a 15% share of the market in Mexico within the next two years. Angelica Valderrama, CEO in Mexico, assured they will focus in participating in municipal projects for public lighting and further informed they are making the corresponding feasibility studies for the location of the new plant. "This plant will bring significant benefits in the short term, such as the creation of 500 new jobs"; she said and added that they expect to achieve annual sales for over US$100 million in one or two years. Valderrama estimated that Havells new facilities, which will be ready by 2011, will make of Mexico "the spearhead for Latin America", a region that accounts for around 20% of the corporation's global income.

Source: Excelsior

Dallas,- Polaris Industries Inc, a company based in the USA, manufacturer of all terrain vehicles, announced they will close their plant in Osceola, Wisconsin, to transfer most of their production to Mexico. In a press release, Polaris informed they are analyzing several sites in Monterrey and Saltillo, cities located in northern Mexico, to install their new factory, which is expected to start operating early in 2011. Polaris did not say how many jobs will be created in Mexico, but the company employs a little over 500 workers in their Osceola Plant. Most of Osceola production will be transferred to Mexico, even if some tasks will be performed in other facilities located in Roseau, Minnesota and Spirit Lake, Iowa. "This was a hard decision for us, given the impact on our employees in Osceola", Scott Wine, Polaris President and CEO said. "However", he said, "the decision will reinforce our company in the long term and will allow us keep our leadership in a competitive market".

Source: El Financiero

New York,- There are at least 46 international companies planning to establish in Ciudad Juarez Chihuahua, 16 of which already have concrete investment projects, according to business representatives. "Qualified labor, distribution network, an attractive real estate market and location, right in the center of the US Border, remain as Ciudad Juarez greatest appeals", said Bob Cook, REDCo General Director, in an interview. REDCo is the company responsible to attract around one fourth of foreign investment made in Ciudad Juarez. According to this firm, 16 out of the 46 companies planning to invest in Ciudad Juarez already have projects, 20 have made initial contact and 10 more are considering the possibility for the future.

Source: El Financiero

Mexico,- Siemens, the German engineering corporation, wants to increase supplies purchases in Mexico, not only for local but for international operations as well, to which purpose they launched the program "Siemens products made in Mexico". Currently, out of the US$50 billion spent by the company in purchases every year, Mexico contributes with less than US$80 million. The purpose set by Siemens is climbing from 40% of domestic supplies to 65% and therefore increase the volume of purchases in Mexico to almost MXP$1 billion per year", Siemens informed in a press release. According to the program, the purpose of this German company is that Mexican suppliers meet quality standards required by Siemens technological products, and insert supplies manufactured in Mexico in several markets, including NAFTA, the European Union and other countries.

Source: Semanario