Bulletin 521 - Friday, June 3, 2011

Queretaro, Mexico- IBM Group opened a branch here to provide service to customers and partners in Bajio Zone. Plans are to increase commercial operations in Mexico by 30% with these new facilities. David Martinez, Commercial Director, Geographical Expansion with IBM Mexico, said that purchases of Information Technologies products for around US$200 million are made every year in Queretaro's market. In a press conference, he informed that the decision to establish in Queretaro is because it has the same competitiveness level as 8 other cities in the world where IBM chose to invest.

Source: El Financiero

Monterrey, Mexico.- After receiving the operations of a plant which closed in the United States in 2008, Siemens is now getting ready to receive new manufacturing lines within the next 12 months to produce residential low-voltage switches. These manufacturing lines come from factories still located in Ciudad Juarez. They will also absorb the tasks currently performed by 4 specialized workshops located in three other cities in Mexico, which will also close.

Source: El Norte

Puebla, Mexico.- Volkswagen de Mexico started technical personnel recruitment for their new Silao Engines Plant in Guanajuato, and the first 119 youngsters are already being trained. Guanajuato State Government, through its Employment Agencies and professional technical institutions, such as CBTIS, CETIS, CECYTEG, CONALEP and Technological Universities in Silao, Leon, Guanajuato, Irapuato, Salamanca and Celaya participated in the recruitment process, which considered applications by close to 1,000 young people. 119 people have been chosen, almost the full amount of the 120 people to be hired this year. This group of young people has already started their training (under an education grants program sponsored by Guanajuato State Government) at IECA Silao Campus. The training course will last 10 months and is aimed to train production technicians for Volkswagen's new engines plant being built in Guanajuato.

Source: Volkswagen

Ciudad Juarez, Chihuahua.- Two maquiladora expansions and Mercabastos II will be inaugurated today, which is proof of a reawakening of investments, which had been halted for 2 years in Juarez due to lack of safety and economic crisis. In the industrial branch, Electrolux and Plexus will inaugurate expansions in their plants, which will generate 900 jobs and represent investments for US$30 million. In the commercial branch, Mercabastos II will be officially opened, adding 100 more jobs; this is the first strong investment made since the crisis started. Except for an expansion made by Delphi early this year, these are the first three public inaugurations in almost 3 years since the crisis started. According to information from the Maquiladoras Association, Asociacion de Maquiladoras Asociacion Civil (AMAC), expansions in this industry is something that has been made throughout the year, but growth in these two plants, Electrolux and Plexus, does make a difference.

Source: El Diario

Mexico City- Long and medium term investments in Mexico take into consideration qualified personnel, infrastructure and telecommunications development, according to KPMG Consultants Firm. KPMG considers that for the time being delinquency and organized crime have not caused capitals to flee away from Mexico. Luis Ricardo Rodriguez, Partner responsible for International Trade and Customs with KPMG, assured that this is thanks to maturity in maquiladora industry. "Maquiladoras are still very attractive at the border; Tamaulipas, Chihuahua, Baja California and Sonora are preferred", he further said. Mr. Rodriguez said that throughout the north border no investments with a significant impact on the economic activity have been withdrawn. Mario Luis Cortes, Professor in Universidad Panamericana, also said that Mexico remains as a strong pole of attraction for both foreign and domestic investment.

Source: El Universal

Chihuahua, Chihuahua.- Victor Gavito Marco, CEO, Grupo Alpura, assured that a few days ago he announced that MXP$450 million were allocated to substitute the caps of ultra-pasteurized milk. The investment will be made not only in Delicias plant, but also at their plant in Cuautitlan, State of Mexico. "The process was difficult because we changed machines, casing-in-machines and the conveyors system. We practically made a new plant, because all the systems are now integrated, which provided for 33% faster speed", he explained. According to Mr. Gavito, MXP$120 million are invested every year to renew their trucks fleet, but this year the expense was much bigger because they made a wider substitution of their whole infrastructure.

Source: Tiempo

Coahuila. Mexico.- "We are currently producing 135 trucks per day, with 1,600 blue-collar workers and 200 white collar employees, which are working hard on a production that looks very well, and which is currently 40% above last year's", said to a local newspaper Mark Hernandez, General Manager of Daimler Truck (Freightliner) Saltillo-Derramadero Plant. Interviewed during Coahuila Auto Show 2011, Mr. Hernandez said that taking into consideration good results this year there are plans to increase both the labor force and units production by the end of this year, with an increase between 15% and 20%, which would mean hiring 240 new workers. "This is a decision that must come from the USA, but I think it could be made between September and the end of the year", Mark Hernandez said and further pointed out that due to excellent markets behavior "this year we could produce 30,000 units, 10,000 more than in 2010 when we ended with 20,000 trucks, and maybe in 2012 we will go after an even figure, 30,000 units as well", he explained.

Source: Vanguardia