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Recent and upcoming investment

Feb 2

Posted by Tom in Economy, Energy, Investment, Manufacturing | No Comments

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Information collected from media reports over the past month:

  • Aerospace: American aircraft maker Hawker Beechcraft is joining forces with Mexican executive jet operator Aerolineas Executivas to build a new maintenance facility to serve private aircraft in the northeastern city of Monterrey.  The US$2.2 million project is planned to provide repair and painting services in the country’s second largest private aviation hub. (El Financiero, January 2, 2012)
  • Automotive: Japan-based Nissan Motor Co. is preparing plans to build a new automobile factory in Mexico.  The new facility will add production capacity to the company’s two existing plants in Mexico which currently have capacity to produce over 700,000 vehicles a year. (Wall Street Journal, January 6, 2012)
  • Automotive: Japanese automaker Nissan announced it will construct a new vehicle assembly plant in the central state of Aguascalientes at an estimated cost of US$2 billion.  The large-scale plan includes a supplier park nearby the new manufacturing facility, which will become Nissan’s third in Mexico. (Autoweek, January 25, 2012)
  • Aviation: European aerospace manufacturer Airbus announced an order from Mexican airline Volaris for the purchase of 44 new A320Neo and A320 aircraft. The total value of the deal, planned for delivery 2015 – 2020, was estimated at approximately US$4 billion. (AFP, January 12, 2012)
  • Aviation: U.S.-based aerospace manufacturer Hawker Beechcraft announced the sale of six new T-6C+ training aircraft to the Mexican Air Force, with the possibility of additional future orders.  The value of the deal was not specified. (Defense Media Network, January 11, 2012)
  • Electricity: German electronics and electrical engineering giant Siemans inaugurated a Low Voltage Research and Development Center near the northeastern city of Monterrey. The company invested approximately US$22 million in the new facility, which will help to develop high efficiency electrical systems for Siemens products. (Reforma, January 13, 2012)
  • Retail: Mexican grocery and general merchandise retailer Soriana announced plans to open 50 new sales locations in the country this year.  The company currently operates 558 stores across its five formats. (Reforma, January 16, 2012)
  • Logistics: The Mexican affiliate of Philippines-based International Container Terminal Services Inc. (ICTSI) has begun construction on a new container handling terminal at the Pacific port of Manzanillo.  The new facility will require investment of US$250 million.  (Maquila Portal, January 17, 2012) Read the rest of this entry »

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Bordo Poniente closure brings opportunities and challenges

Jan 10

Posted by Tom in Energy, Uncategorized | 1 Comment

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Destination unknown

Destination unknown

As Mexico City residents slowly returned to work and normal life after the holidays, we discovered we had a garbage problem.  Not just the bags of empty liquor bottles by the door; a real problem for the whole city and surrounding State of Mexico.  The largest solid waste disposal facility used for city garbage was shut down in December, and suddenly the city’s sanitation department wasn’t sure what to do with the garbage.

The dump in question, called Bordo Poniente, was closed with great fanfare on December 19, 2011 after over 25 years of service.  In line with Mayor Marcelo Ebrard’s ongoing effort to implement ecologically friendly public policies, city agencies developed a plan to recycle the site’s estimated 70 million tons of garbage in a number of ways.  According to the plan, the city will issue a tender for private companies to compete for a contract under which the winner will partner with government agencies to build a plant to harvest biogas from the decomposing organic waste.  Read the rest of this entry »

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Recent and upcoming investment

Jan 3

Posted by Tom in Energy, Investment, Manufacturing | No Comments

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Information collected from media reports over the past month:

  • Telecommunications: Finland-based telecommunications technology provider Nokia Siemens Networks inaugurated a new Service Delivery Center in Mexico City.  The US$2.4 million facility will provide design, planning, optimization and assurance support for telecommunications networks in Latin America, according to the company. (Nokia Siemens Networks, December 7, 2011)
  • Metals: U.S.-based metals processor Ryerson Inc. recently opened a new processing center in the northwestern city of Tijuana.  The facility will provide services such as cutting, slitting and laser burning for the area’s large maquiladora and manufacturing industries. (Made in Mexico, Inc., November 7, 2011)
  • Aviation: Mexican airline VivaAerobus announced plans to invest US$20 – 25 million in 2012 for the acquisition of five to seven new aircraft.  The company has registered strong growth since its launch in 2006. (Mexican Business Web, December 3, 2011)
  • Mining: Canadian mining firm Excalibur Resources announced that it will proceed to develop a major gold and silver production facility at its Catanava mining property in Zacatecas, Mexico, following approval of permits by the Mexican government.  Plans for the development include the construction of office and warehouse space as well as crushing, milling, conveyance and laboratory installations. (Canadian Mining Journal, November 25, 2011)
  • Retail: U.S.-based electronics retailer Best Buy announced plans to double the number of its sales locations in Mexico next year.  Best Buy, which entered the Mexican market in 2008, plans to expand from eight to 16 stores in Mexico in 2012. (Reforma, November 29, 2011) Read the rest of this entry »

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Mexico pouring on the green energy initiatives

Dec 12

Posted by Tom in Energy | 2 Comments

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Plugged in

Plugged in

On the heels of its recently concluded year-long presidency of the United Nations Conference on Climate Change (COP16), Mexico is soldiering on with its sustainability policy blitz.  In late November, the Federal Regulatory Improvement Commission (Cofemer) issued its approval of proposed new regulations under which independent entities generating power from renewable sources may connect to the national electricity grid.  Last year, we reported with great satisfaction that the Energy Regulatory Commission (CRE) had created a contract that allowed independent producers of energy for their own consumption to connect to the grid via a net metering system.    The new regulatory document, under the nimble title “General Rules of Interconnection to the National Electric System for Generators or Permit-holders with Renewable Energy Sources or Efficient Cogeneration,” is intended to streamline the process and lower the overall cost of grid integration for independent producers.  The administrative, legal and technical requirements, formerly distributed among various prior documents published by different agencies, will now be incorporated into the single regulatory document.  The Energy Ministry (Sener) may now publish the new regulations in the Official Gazette, with the hope that facilitating the process will hasten the contribution of new and more environmentally friendly generating plants to the country’s energy supply.  If you feel you must, you can read the Cofemer’s final opinion on the new regulations here (oh go on, we did). Read the rest of this entry »

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Mexico hosts Green Solutions international sustainability conference

Nov 28

Posted by admin in Energy, Politics | No Comments

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carbon creditAs Mexico’s year-long presidency of the 16th edition of the United Nations Conference on Climate Change (COP16) drew to a close, ProMéxico hosted the Green Solutions conference and exposition November 23 – 25, 2011 in Mexico City.   The event consisted principally of three days of panel discussions on public policy related to climate change, amidst an exposition area featuring innovative products and services aimed at reducing greenhouse gas emissions and overall depletion the world’s natural resources.   The first edition of the Green Solutions conference took place during the COP16 international conference held in Cancun one year ago.

The conference provided an excellent opportunity for those involved or interested in climate change mitigation to exchange perspectives on the outlook for greenhouse gas reduction and learn about projects and initiatives taking place in various parts of the world.  With the COP17 conference kicking off in Durban, South Africa today, at the forefront of discussion is the question of what will happen once the Kyoto Protocol expires at the end of 2012.  The agreement currently establishes ostensibly binding greenhouse gas reduction targets for participating developed nations, and key signatories such as Japan, Russia and Canada are showing little enthusiasm for re-upping once the current period concludes.   Read the rest of this entry »

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New NOM for sustainable housing in the works

Oct 28

Posted by Tom in Energy | 1 Comment

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A better idea

A better idea

Mexico’s Energy and Environment Ministries are working to prepare new regulations applying to sustainable housing construction and retrofitting, according to a presentation made by an Energy Ministry (SE) official during the International Forum on Urban Development and Sustainable Reconversion held in Mexico City recently.  The regs will come in the form of a Norma Oficial Mexicana (NOM), or Official Mexican Norm, which is Mexico’s system of obligatory performance and safety standards for some types of products and industrial activities.  The new NOM is planned to establish the parameters within which housing units will be officially considered “sustainable,” based on characteristics such as energy and water efficiency, insulation and waste disposal, among others.  Presumably compliance with the guidelines will be required for housing to qualify for government incentive programs for builders and homeowners intended to stimulate increased energy efficiency.  Residential housing is estimated by the SE to be among the largest consumers of energy in the country, accounting for approximately 19% of power use nationwide.  Officials are targeting early 2012 for completion of the new regulations. Read the rest of this entry »

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Recent and upcoming investment in Mexico

Oct 6

Posted by Tom in Economy, Energy, Investment, Manufacturing | No Comments

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Information collected from media reports over the past month:

  • Retail: USA-based apparel marketer Warnaco revealed plans to open approximately 30 new stores in Mexico over the next two years.  Mexico sales were up by 39% through the first half of 2011 for the marketer of brands such as Calvin Klein and Speedo. (Reforma, August 25, 2011)
  • Logistics: Mexican cargo terminal operator Ferrovalle Intermodal announced a US$10 million expansion to its rail cargo handling facilities in Mexico City to be carried out this year.  The addition of 25 developed acres to the terminal will increase annual handling capacity to over 550,000 containers and speed last-mile deliveries. (Reforma, August 1, 2011)
  • Entertainment: Mexico City’s largest film studio, Estudios Churubusco, will expand with the construction of a new post-production building.  The investment of approximately US$20 million will include over 30,000 square feet of digital laboratory space, production warehousing and offices. (Reforma, September 6, 2011)
  • Infrastructure: Spanish infrastructure developer OHL Group, through its environmental subsidiary Inima, will build and operate a large-scale desalination plant in the northern Mexican state of Baja California.  The US$41 million facility is planned to produce 275 million cubic feet of potable water annually. (Reforma, September 7, 2011)
  • Energy: Spanish renewable energy developer Siliken will invest US$20 million initially to build and launch a 100 MW solar power plant in the northern state of Durango.  The project is planned to include a research and development center in addition to generating electricity. (Milenio, September 8, 2011)
  • Autoparts: Japanese industrial automation manufacturer Omron Corporation will invest US$30 million to build a new production plant in the central Mexican state of Guanajuato.   The facility will join recently announced new factories to be built by Honda and Mazda in Guanajuato’s growing automotive industry. (El Sol de Irapuato, August 27, 2011)
  • Biotechnology: Mexican agricultural biotechnology laboratory Biosustenta inaugurated a new plant to produce biofertilizers in the western state of Michoacán.  The US$1.3 million facility will use mycorrhizal fungi and other bacterias to produce the fertilizers.  Biosustenta currently exports product to the United States, Canada and Europe. (El Financiero, August 30, 2011) Read the rest of this entry »

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Recent and upcoming investment

Sep 5

Posted by Tom in Economy, Energy, Investment, Manufacturing | No Comments

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  • Agribusiness: Mexican agricultural services provider Phytosan inaugurated a new phytosanitary radiation plant in the northeastern state of San Luis Potosi following investment of US$12 million.  The facility, the only one of its kind in Mexico, will be used to treat fruits and vegetables for export to the United States.
  • Automotive: Japanese automaker Honda plans to invest US$800 million to build a new manufacturing plant in the central state of Guanajuato.  The new factory, planned to begin production by 2014, will produce energy-efficient subcompact autos. Honda currently operates an automobile factory in the western state of Jalisco.
  • Hospitality: U.S.-based hotelier La Quinta Inns & Suites announced plans to invest US$60 million to expand operations in Mexico over the next three years.  Projects are expected to include new hotels in business hubs such as Mexico City, Ciudad Juarez, Reynosa and San Luís Potosí, among other locations.
  • Automotive: Japanese automaker Honda will reactive investment plans at its manufacturing plant in the western state of Jalisco.  US$60 million in resources are earmarked to install equipment and technology needed to produce the company’s next model CR-V recreational vehicle.
  • Automotive: U.S. auto parts maker TRW Automotive announced it will invest US$50 million to install a new manufacturing plant in the central Mexican state of Queretaro.  The new facility reportedly will produce anti-lock braking systems to supply Volkswagen Brazil.
  • Mining: Mexican corporate group GFM has formed a joint venture between its heavy equipment subsidiary GFM Maquinaria and Singapore-based Singapore Technologies Kinetics to market mining equipment under the brand TRXBUILD.  The association plans to build a factory to produce equipment such as backhoes, tractors and off-road trucks in Mexico within five years through projected investment of US$20 million. Read the rest of this entry »

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Recent and upcoming investment

Aug 2

Posted by Tom in Energy, Investment, Manufacturing | No Comments

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  • Automotive: U.S. auto maker General Motors announced US$900 million in additional investment in Mexico in the coming years.  The resources are planned to expand production capabilities at various of the company’s plants in the country.
  • Manufacturing: British-Dutch consumer goods giant Unilever inaugurated a new manufacturing plant in the state of Morelos, near Mexico City.  The US$84 million facility will produce personal care products for the brands Axe, Dove and Rexona.
  • Tourism: Mexican hotel operator Grupo Posadas will invest US$140 million this year in new hotel projects in Mexico.  With tourism showing signs of recovery after the long economic downturn, Posadas’ Mexican investment is part of a total US$400 million projected by the company for new projects throughout Latin America.
  • Wind power: The Mexican subsidiary of U.S.-based Cannon Power Group revealed plans to invest US$2.5 billion to develop three new wind farms in Mexico.  The newly created Mexico Power group plans generating plants with combined capacity over 300 MW for the states of Baja California, Zacatecas and Quintana Roo.
  • Metals: Chilean metals processor Molymet will invest US$135 million to build a new production plant in Sonora, Mexico.  The new plant will add to the company’s existing molybdenum processing infrastructure in the state.
  • Food processing: Leading Mexican meat processor SuKarne will invest US$270 million to build a large production facility in the north eastern state of Nuevo Leon.  The project is planned to include livestock raising facilities, a feed plant, a federally certified slaughterhouse, a packing plant, a distribution center and a rail shipping link. Read the rest of this entry »

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New product labeling rules spark head-scratching

Jun 22

Posted by Tom in Energy, Trade | 1 Comment

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Oh no

Oh no

The process of implementing a rule change for product labeling that began last year may mean more work and expense for some importers, but so far it’s a little hard to tell exactly where the process stands.

The new rule, which requires additional information on energy consumption for some electric products, is ostensibly aimed at lowering overall energy consumption to reduce greenhouse gas emissions and help consumers lower their electric bills.  But tracking exactly what is required and when has not been easy.

In September 2010, the Secretaría de Energía published a list of electric appliances for household and commercial uses that will be required to declare the product energy consumption in Spanish on a label directly on the product.  Affected products include vacuum cleaners, blenders, coffee makers, juice extractors, air conditioners, refrigerators, microwave ovens, irons and hair dryers, among others.  The full list of products can be found here. Read the rest of this entry »

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