Bulletin 477 - Friday, July 9, 2010

Guadalajara, Mexico,- With an investment over MXP$130 million, Lechera Guadalajara, producer of Sello Rojo dairy products, installed the second largest milk dehydrating plant - only after Nestlé's plant in Lagos de Moreno - and is getting ready to finish their cheese and candy factory. For the milk dehydrating plant, Lechera Guadalajara purchased equipment with US and Danish technology and invested MXP$80 million. The purpose of this project is controlling milk surplus. The dehydrator is located in the company's industrial complex in R. Michel Avenue in Guadalajara and has capacity to process 11 thousand 500 liters per hour. This new project will also pave the way to other projects, such as producing cheese and confectionery, to which purpose they are building a factory in Tlajomulco de Zuñiga, where they are considering an investment for around MXP$50 million.

Source: El Mural

Mexico City,- Through Nacional Financiera (Nafin) and Mexican Foreign Trade Bank Banco Nacional de Comercio Exterior (Bancomext), the Mexican government channeled US$400 million to Chrysler, for the production in Mexico of Fiat 500. Such support had been agreed on February 9, with the execution of a document between Nafinsa's and Bancomext's CEO, Hector Rangel Domene, and Chrysler de Mexico's President, Joseph Chamasour. In a press release, both institutions pointed-out that this financing was a key element to help development banking keep investments in Mexico. They explained that thanks to this Chrysler will produce the vehicle in Toluca, instead of making it at facilities the company operates in other countries in the American Continent. "Mexican Government's commitment to support automotive industry - a strong currency and jobs generator - is confirmed by granting this financing in highly competitive conditions", they pointed-out.

Source: La Jornada

Puebla, Puebla,- Volkswagen Group announced a new investment for One Billion US Dollars in Mexico within the next three years in a new engines plant and new projects, standing out Beetle manufacture as of 2011. This was assured by Jochem Heizmann, Management Board member, Volkswagen Group, during the inauguration of a new production segment in Volkswagen de Mexico, cradle of "Bicentenario" model, which will be launched to the Mexican market in a few days. At the event, he stressed the fact that Volkswagen Puebla Plant will stay as the main supplier of compact vehicles for North America, and that the Group's growth strategy in the region will provide new impulse to Mexico, with a production capacity over half a million vehicles per year. Heizmann announced that in order to take the best advantage of production capacity, they will continue investing in the development of new products, including the manufacture of Beetle's successor as of 2011. With these projects the company's investment in Mexico in the next three years will once again reach One Billion US Dollars.

Source: El Financiero

Mexico,- Arising from 350 business meetings between suppliers and industries in the electronics field, operations for a total amount of US$420 million might be generated during the Fifth 2010 Business Encounter, organized by the Mexican Chamber of Electronic Telecommunications and Information Technologies Industry, Camara Nacional de la Industria Electronica de Telecomunicaciones y de Tecnologias de la Informacion (Canieti). Claudio Arriola Guerrero, Regional Chairman, pointed-out that they have a list of 60 suppliers which will offer their products and services to 16 purchasing companies. He said that prior to the Business Encounter a research was made on companies' priorities, to lead them to the companies in the position to cover their quality standards and supplies needs. Arriola Guerrero considered that the presence of 16 purchasing companies is proof that they are making a great effort to stimulate economy.

Source: El Mexicano

Mexico City,- The possibility to transfer Navistar Chatham factory in Canada to Mexico is getting closer, after Canadian Auto Workers (CAW) rejected the company's labor offer. Last Friday CAW turned down the offer and the company therefore sent to rest the last 350 workers from around one thousand 100 who worked at the site. "We cannot expect our members to accept an agreement that would eliminate their jobs and strike a hard blow to the community", CAW's Chairman, Ken Lewenza, said in a press release. "We need a real commitment from the company about this plant's future. Up to now, what we have seen is that Navistar only includes the elimination of hundreds of jobs and transferring production abroad, to the USA and Mexico", he said.

Source: T21

Mexico City,- Before more than 100 Chinese businessmen called by the Council for China International Promotion (CCPIT) and 20 small and medium businessmen from the State of Mexico, Carolina Monroy, a Government Officer, said that the State of Mexico - with more than 400 thousand companies established there - "enjoys conditions that propitiate investments, and therefore we are looking forward for a larger Chinese presence at the State". Representing Governor Enrique Peña Nieto and with the presence of Wang Lei, CCPIT Representative, Ms. Monroy pointed-out that the State of Mexico, with almost 15 million people is undoubtedly the best communicated state in Mexico, crossed by five of the most important highways and is connected to the ports of Lazaro Cardenas and Veracruz, only 250 miles away. Upon presenting competitive and comparative advantages offered by the State of Mexico to Chinese investors from sectors such as automotive, information technologies and chemical-pharmaceutical, she invited businessmen from this Asian country to make their next investments in the State of Mexico, "because we are a consolidated state, with a privileged location for domestic and international investment, mainly in manufacturing industry".

Source: Portal Automotriz

Chiapas, Mexico,- The first soluble coffee lyophilization plant in Mexico will be built in Chiapas, thanks to a US$14 million long-term loan granted by DEG (Deutsche Investitions - und Entwicklungsgesellschaft mbH) and Rabobank International, a firm specialized in agribusiness. The factory will be established by Agroindustrias Unidades de México (AMSA), a company that trades agriculture products, such as coffee, cotton and cacao. In a joint venture with other partners, AMSA has incorporated Cafes de Especialidad de Chiapas (Cafesca) to carry out this project. Cafesca will build a factory in Tapachula Port Industrial Polygon to produce four thousand tons of lyophilized soluble coffee per year.

Source: El Financiero