Bulletin 473 - Friday, June 11, 2010

San Luis Potosí, Mexico,- Flexitech Inc, a joint venture of Mitsubishi Corporation and Meiji Flow Systems, opened their newest facility in the city of San Luis Potosí to manufacture and market automotive hydraulic brake hoses to serve major OEMs in North America such as General Motors, Volkswagen, Chrysler-Fiat and Nissan. With the attendance of top management staff from Flexitech, Mitsubishi, Corporation, Meiji Flow Systems and their customers, as well as Officials of the SLP State Government and the Workers' Union SITIMM, the opening ceremony was held at the Millenium Park facility. The Secretary of Economic Development of San Luis Potosí, Ms. Martha Meade, welcomed the new investment into the region: "It was the right decision for Flexitech to settle in San Luis Potosí, and take advantage of the geographical location to maximize the logistical advantages, their qualified labor force, and a serious, peaceful and committed business environment". Mr. Celso Pierre, COO of Flexitech Inc highlighted the vision and support of their shareholders, the passion of the Mexican workers, and the support of the State Government in order to settle a state-of-the-art facility to supply to the NAFTA region. With regards to Grupo Prodensa, Flexitech's strategic partner in the launching of the new operation in San Luis Potosí, Mr. Pierre stated: "I would like to thank Grupo Prodensa for their invaluable support, because without it, this launching wouldn't be possible".

Source: Flexitech

Durango, Mexico,- With a MXP$100 million investment of Korean-North American capital and with the generation this year of two thousand new jobs, Durango Automotive Wiring Systems, (DAWS) was inaugurated by Governor Ismael Hernadez Deras, confirming the path our State has followed for some time now, because in the first 5 months of the year 4 thousand 988 jobs have been created, according to the report on Permanent and Temporary Workers prepared by the Mexican Social Security Institute. "This means", the Governor said, "that in five months more jobs have been generated in the State than in all of last year". He added that for the first time in a year and a half the figure of 181 thousand people registered in Social Security has been exceeded (currently 181 thousand 116 jobs). Before employees, state and municipal government officers and business leaders, Hernandez Deras pointed-out that to this date DAWS has hired 954 workers and within a few days - on June 14 - they will start recruiting 500 people more for this plant; therefore, in 2010 the figure of 2 thousand new jobs to benefit families in Durango should be completed.

Source: La Voz de Durango

Mexico City,- Chrysler de Mexico will manufacture electric FIAT 500 as of 2012, Joseph A. Chamasrour , President, informed during the inauguration last night of the VIII International Congress of the Automotive Industry in Mexico. Mr. Chamasrour said that assembly of this new model will be possible thanks to the strategic alliance between the Italian Group FIAT and the US-based Chrysler Group LLC. "The electric model will be a reality in 2012 for the US market, but we would be very pleased if the Federal Government and Mexico City Government offered a series of incentives to sell this model in Mexico, given the characteristics this unit offers for big cities, where the use of these cars is necessary", he explained. The engineering for the new FIAT 500 model will be developed in Chrysler Technological Center located in Auburn, Michigan. Early last February, Sergio Marchione, FIAT Chairman of the Board, came to Mexico to confirm the investment in Toluca, State of Mexico for the construction of this new model, of which at least 100 thousand units will be assembled every year. Manufacture should start by the end of the year in Chrysler de Mexico industrial complex in Toluca.

Source: El Norte

Mexico City,- Kansas City Southern de Mexico (KCSM) will make a US$80 investment which had been halted for almost 2 years due to a lack of decision by Michoacan Government on the disincorporation of over 400 hectares of the plot of land known as Isla de la Palma. In a portion of such plot a railroad terminal will be built, which will allow supplementing the services already offered in the port at the state. According to Edgar Guillaumin, Institutional Relations Sub-director, the authorization by the local congress is relevant to propitiate the conditions and certainty required for investments in long-term infrastructure projects. KCSM is only waiting for the local government to transfer the land for the project, in order to start the investment, which is expected to generate more than 8 thousand jobs in the region.

Source: El Norte

Mexico City,- The automotive company Zilent Mexico will invest MXP$240 million to expand their automobiles and motorcycles distribution network, an investment that will start to materialize in the second half of 2010 and early next year, Houssein Carlos Take, CEO, informed. In an interview Mr. Take informed that with these investments Zilent, manufacturer of electric cars, is planning to open 100 motorcycles and 20 automobiles dealerships, which will add to the current 11 agencies (three selling cars and eight selling motorcycles). With these investments 400 direct jobs may be created in the motorcycles dealerships and 200 more in the automobiles dealerships. "Zilent delayed operations kick-off due to the economic crisis; however, the company keeps its expansion plans, we are even negotiating with an important shopping malls chain to start selling our motorcycle models and in around two months we will present the new 2011 vehicle", he said.

Source: T21

Arteaga, Coahuila,- With a US$51 million investment a new plant will be installed in Valle de Derramadero, Coahuila - generating more than 500 jobs in two stages - by Cesantoni, producer of ceramic articles. This was informed during a ceremony headed by Governor Humberto Moreira Valdes and Pablo Raimers Morales, Cesantoni's President and CEO, as well as Yaco Reimers Campos, CFO of this 100% Mexican company, and attended also by the Minister of Economic Foster, Jorge Alanis Canales, City Mayor Jerico Abramo Masso and Cesar Cantu Benavides, President of Grupo Alianza. Governor Moreira said that the 27 thousand 492 jobs created throughout this year in the State of Coahuila represent 6.2%.

Source: Zocalo

Merida, Yucatan,- Mexico will have Foreign Direct Investment levels similar to those in 2008, with the arrival of around US$18 billion, Felipe Duarte, Standards and Competitiveness Sub-Secretary in the Ministry of the Economy, forecasted. From January to December 2009, the Ministry received FDI notices amounting to US$11.417 billion, while in even term in 2008 US$18.598 were received and in 2007 a little over US$23.230 billion came as foreign investment. Felipe Duarte agreed with Bruno Ferrari, ProMexico Director, that Mexico stays as a safe and reliable destination for investors. Interviewed during the XVII Mexican Foreign Trade Congress held under the topic "Foreign Trade, Impulse to Economic Recovery", Sub-secretary Duarte said that Mexico will become an important destination for investment during capitals relocation after the world financial crisis.

Source: El Norte