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)
• Manufacturing: U.S. based safety systems manufacturer IMMI will install a new production plant in the northern city of Coahuila.  The US$49 million facility will produce safety equipment for fire trucks, helicopters, ambulances and other applications. (El Diario de Coahuila, January 13, 2012)
• Aerospace: U.S.-based aerospace manufacturer Ducommun will invest US$6.6 million in machinery and other equipment to upgrade its factory at Guaymas, in the northwestern state of Sonora.  The project includes construction of a new industrial building at the facility, which provides electro-mechanical, sheet metal and composite assembly services. (NAFTA Works, January 2012)
• Logistics: U.S.-based rail carrier Kansas City Southern inaugurated a new rail freight handling terminal in the central State of Mexico.  Built at a cost of US$2.1 million, the terminal is equipped to handle a large volume of liquid cargo. (Info-Transportes, January 20, 2012)
• Aviation: Mexican airlines are projected to acquire 27 new aircraft in 2012, according to financial services firm Actinver.  Airlines expected to add to their fleets include Aeromexico, Interjet, Volaris and VivaAerobus. (Reforma, January 23, 2012)
• Retail: U.S.-based coffee shop chain Starbucks plans to invest US$25 million this year to open 50 additional locations in Mexico, the company reported.  Starbucks projects 24% growth in total Mexico sales this year, based in part on the country’s rising per capita coffee consumption. (El Financiero, January 24, 2012)
• Energy: Spanish bank Banco Santander will provide capital to build four wind farms in northern Mexico, in partnership with German wind energy developer SoWiTec.  The sites, to be built in the states of Nuevo León, San Luís Potosí and Coahuila represent combined capacity of 650 – 850 MW.  The amount of investment was not specified. (Milenio, January 23, 2012)
• Plastics: U.S.-based injection molding firm Century Mold Co. announced plans to build a new production plant in the central state of Queretaro.  The US$15 million facility will supply Tier 1 automotive component manufacturers in the region. (Plastics News, January 17, 2012)
• Retail: Mexican fast food franchise operator Alsea will open an additional 100 locations across its eight brands this year, the company announced.  Brands operated by Alsea in Mexico include Starbucks, Burger King, Chili’s and Domino’s Pizza, among others. (Reforma, January 26, 2012)
• Food processing: The Mexican affiliate of U.S.-based food processing giant Kraft Foods re-inaugurated its research and development center in Mexico City at a cost of US$50 million in technology and skilled staff.  The facility carries out research to improve the quality and development time for new products. (Reforma, January 26, 2012)

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)
• Automotive: German automotive and electrical components manufacturer Bosch estimated total investment in Mexico of over US$78 million for 2011.  The resources went principally to upgrade machinery and tooling for the company’s 13 production plants in the country, Bosch Mexico president Charles Visconti revealed. (NAFTA Works, December 2011)
• Automotive: Japan-based Neaton Auto inaugurated a new production plant in the central state of Queretaro.  Built at a cost of US$53 million, the facility will manufacture air bags for OEMs Nissan, Honda and Toyota. (Corresponsal del Bajío, November 3, 2011)
• Plastics: Spanish automation components and plastics manufacturer Matz-Erreka inaugurated a new expansion at the plant of its Mexican affiliate Erramex in the central state of Queretaro.  The US$3 million capacity addition will produce precision components for clients such as Valeo, Hutchinson, ZF Sachs and others. (El Financiero, December 5, 2011)
• Energy: Spain-based gas multinational Gan Natural Fenosa announced plans to invest approximately US$65-70 million annually in Mexico over the next 13 years to expand its gas distribution network.  The company seeks to double its existing 15,000 km of pipeline over this period. (El Financiero, December 15, 2011)
• Aerospace: French aircraft component maker Manoir Industries inaugurated a new manufacturing plant in the northern state of Chihuahua.  The US$10 million facility will join the state’s growing aerospace cluster, producing turbine blades and parts for braking systems. (Chihuahuan Frontier, December 1, 2011)
• Manufacturing: U.S.-based Mars company’s Mexico subsidiary inaugurated a new pet food manufacturing plant in the western state of Jalisco.  The US$60 million facility will produce moist food products for dogs and cats. (Excelsior, December 12, 2011)
• Logistics: Danish marine transport group A.P. Moller-Maersk subsidiary APM Terminals will invest US$900 million to construct a new container handling terminal at the Mexican port of Lázaro Cárdenas.  The facility is planned to include 5,000 feet of dock space and an on-dock rail yard. (El Financiero, December 30, 2011)

Read about our participation in the Mexico Today program here.

As another year comes to a close we can’t help feeling some frustration that the economy just doesn’t seem to want to take off, both around the world and here in Mexico.  Between the Eurozone debt crisis and stubborn unemployment in the United States, among other topics, we’ve got plenty to keep us fretting for the foreseeable future.  But since the holidays are upon us and presumably it’s a time for good cheer, here are some of the talking points we’ll have in our pocket as we hit the punch bowl hard in the coming days:

GDP growth: Banco de México and Banamex are projecting final 2011 GDP growth in the range of 3.8%.  OK we’re not talking China numbers here but compared to 2009’s -6.1 we’ll take it.

Hot industries: While most sectors of the economy are merely shuffling along, certain industries are getting, or remaining, seriously hot.  The big star this past year was automotive manufacturing, which after suffering a rough patch during the recession has roared back, with production and exports well up over 2010 and a number of significant new investments announced.  Aerospace manufacturing also continued its unchecked expansion, with new international investments announced and exports projected to post double-digit growth for the year.  Outside of manufacturing, mining surged this year, led by demand for gold, silver, copper and industrial minerals, and is on track to exceed 2010’s record setting production value for the year.

Renewable energy: In the energy industry, 2011 saw continued high interest in renewables, with major new investments in a variety of alternative energy sources.  New wind power generation plans were announced not only in Oaxaca, site of the largest wind developments, but also in northern states such as Zacatecas and Baja California and far south eastern Quintana Roo.  Interest in solar electricity generation appeared to surge as well, with a range of projects announced for manufacturing sites, corporations, municipal lighting and rural electrification, among others.  The growth in demand for solar panels is helping drive expansion of domestic photovoltaic equipment manufacturing.

Agriculture: The agriculture and livestock sector faced a severe challenge this year with devastating drought conditions in various northern states.  A bright spot, nonetheless, is the growing diversification of exports such as meat.  Mexican beef has found a new market in Russia, to which exports of frozen beef surged this year, and exports of pork to China and Japan are expected to rise in 2012 following recent regulatory moves.  Chinese authorities have certified a number of Mexican pork packing plants to export to the Asian giant in 2012, while Japan recently agreed to increase quotas for imported Mexican pork, as well as beef and chicken, beginning next year.

Read about our participation in the Mexico Today program here.

Information collected from media reports over the past month:

• Automotive: German auto parts manufacturer Robert Bosch projected investment in its Mexico operations at US$78 million for 2011.  The resources are earmarked to support introduction of new technologies and preparation for the manufacture of new brake pad and battery products at the company’s 13 Mexico production locations. (El Informador, September 29, 2011)
• Aerospace: Canadian aircraft maker Bombardier announced it will invest US$50 million to outfit its Queretaro plant to produce the aft fuselage for its new generation of long range business jets.  Mexico is now producing major composite structures for the company’s Learjet 85, such as fuselage lay-up and subsystem installation, wiring harness fabrication and installation, wing assembly and horizontal and vertical stabilizer assemblies. (The Montreal Gazette, October 25, 2011)
• Recycling: Germany-based industrial services firm Ferrostaal AG announced plans to build a tire recycling plant in Mexico.  The facility will convert used vehicle tires into rubber granules for potential use in the manufacture of sports and recreation surfaces, soundproofing insulation or water hoses, among other uses.  The amount of investment in the new plant was not specified. (Ferrostaal, September 26, 2011)
• Mining: Minera Autlán, subsidiary of Mexican mining group Grupo Ferrominero (GFM), is projecting investment in its Mexico mining operations of up to US$300 million over the next five years.  GFM’s energy subsidiary GFM Energía also plans to build three hydroelectric plants and one wind power generating plant in the coming years. (Reforma, October 6, 2011)
• Steel: U.S.-based Steel Technologies announced plans to build a new steel processing facility in the northeastern state of Nuevo León.  The US$78 million plant is planned to provide steel cutting and surface treatment services for the region’s thriving automotive industry. (NAFTA Works, October 2011)
• Software: Microsoft Corp. inaugurated a new Microsoft Technology Center in Mexico City this month.  The center, the first of its kind in Latin America, will be used to train software developers and test advanced products.  Microsoft is projecting investment of over US$600 million in Mexico in the coming years. (Fox News Latino, October 5, 2011)
• Food processing: Swiss confectionary Barry Callebaut revealed plans to acquire a chocolate producing plant in Toluca, Mexico, from its strategic partner Grupo Turin.   The European chocolate maker plans to invest US$30 million over the next three years to boost production at its Mexico facilities. (El Universal, September 21, 2011)
• Telecommunications: The Mexican market for smart phones is on track to grow 78% in 2011, according to market researchers IDC.  Mexico is the second largest market in Latin America for the devices, with sales of over 7 million units projected for this year. (Mexican Business Web, October 7, 2011)
• Food processing: Mexican coffee processor CAFESCA inaugurated a new US$43 million freeze-drying plant in the southern state of Chiapas this month.  Mexico is among the world’s largest coffee producers, with Chiapas the country’s leading coffee producing state. (El Financiero, October 19, 2011)
• Aerospace: Mexico’s airline industry will require over 400 new passenger jets worth more than US$30 billion during the next 20 years, according to the 2010 – 2030 Global Market Forecast by Airbus.  Mexico is the European aircraft manufacturer’s second largest market in Latin America after Brazil, Airbus reported. (Reforma, October 28, 2011)
• Retail: Mexican corporate group FEMSA announced an expansion target of opening 3,000 new locations of its Oxxo convenience store format by the end of 2014.  The company currently operates over 9,000 Oxxo stores in Mexico. (El Financiero, October 18, 2011)
• Beverage: Freixenet Mexico, subsidiary of Spanish winemaker Freixenet, expanded its bottling plant in the central state of Queretaro through investment of US$1.4 million, the company revealed.  The upgrade doubled bottling capacity from 1,000 to 2,000 bottles of wine per hour. (Reforma, October 31, 2011)
• Aerospace: France-based Eurocopter announced plans to build a new manufacturing plant in the central state of Queretaro, home to Mexico’s largest aerospace cluster.  The US$100 million facility is planned to produce helicopter and aircraft components such as tail booms, vertical stabilizers and doors. (Corporate Jet Investor, October 27, 2011)

Read about our participation in the Mexico Today program here.

• 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.
• Paper: Chilean paper producer CMPC will open a new paper bag manufacturing plant in Guadalajara, Mexico.  The US$20.4 million facility is projected to begin operations in early 2012 with annual production capacity of 40,000 tons.
• Construction: Plans for US$ 2.3 billion worth of new office tower construction along Mexico City’s Reforma business corridor were revealed during the World Office Forum conference in Mexico City this month.  At least 13 new towers are slated for construction by 2014.
• Automotive: Volkswagen Mexico invested US$400 million to redesign its Puebla, Mexico plant for the production of the new Beetle model automobile.  The company is projecting output of 100,000 units of the model for next year, principally for export to the United States, Europe and China.
• Retail: U.S.-based grocery and general merchandise retailer H-E-B plans to invest US$23 million in 2012 to capitalize on its strong growth in the Mexican market.  Sales at the chain’s Mexican stores, which currently number 39, were up 12% overall through the first half of 2011.
• Mining: Mexican mining firm Grupo Peñoles inaugurated its new El Saucito silver mine in the northern state of Zacatecas.  Total investment in the new mine and processing plant is estimated at over US$300 million.
• Logistics: Mexican intermodal freight terminal operator Intermodal Mexico will invest US$20 million in infrastructure upgrades to handle strong growth in demand for container management.  Resources are earmarked for container handling equipment, cranes and information management systems.
• Electronics: U.S.-based audio electronics manufacturer Harman is building a new production facility in the central state of Queretaro.  The plant, to be completed next month at a cost of approximately US$75 million, will produce audio systems for automobiles.
• Cosmetics: French cosmetics giant L’Oreal will invest US$50 million in the construction of a new manufacturing plant in the northeastern state of San Luís Potosí.  The new facility, the company’s second in Mexico, is planned to produce hair coloring products for the Mexican market as well as for export to the United States and elsewhere in Latin America.
• Telecommunications: Mexican beverage bottler Coca Cola-FEMSA is investing US$3 million to open a new contact center in the State of Mexico, just outside Mexico City.  The center is planned to handle 10,000 customer service calls daily from the surrounding states.
• Aerospace: British heat treatment specialist Bodycote announced recently it will open a new technical facility in the northwestern state of Sonora.  The plant will provide advanced thermal processing services to aerospace manufacturers in the area. The states of Sonora, Chihuahua and Baja California form Mexico’s largest aerospace manufacturing cluster with over 100 companies between them.

To find out about our participation in the Mexico Today program, please go here.

• Aerospace: Mexican aerospace manufacturer Hydra Technologies closed the first sale of its Ehecatl unmanned aircraft to a foreign customer at the Paris Air Show this month.  Hydra’s export order by a Canadian buyer, the value of which was not revealed, includes six aircraft, supporting equipment and services.  The contract represents the first export order of completed aircraft designed and built by a Mexican company, a major step forward for the country’s burgeoning aerospace industry.
• Automotive: Japanese automaker Mazda at long last confirmed rumors that it will build a major new production facility in the central Mexican city of Salamanca, Guanajuato State.  The US$500 million facility, planned to produce next-generation engines and automobiles, is scheduled to open in 2013.
• Trade: Chinese trade promotion agency Chinamex announced plans to build a Dragon Mart shopping center in Cancun, Mexico, via initial investment of US$150 million.  The complex, which will offer exhibition space, importation facilities, retail and wholesale outlets and restaurants, is intended to promote exports by small and medium sized Chinese companies.
• Logistics: Mexican courier and logistics company Redpack inaugurated a new Operations Center in the western city of Guadalajara, Jalisco.  The US$6 million facility provides freight yards, warehousing, loading docks and office space to facilitate the company’s freight management for the western region.
• Automotive: Platinum Tool Technologies, a Canadian manufacturer of molds for the automotive industry, formally inaugurated its plant in the northern state of Coahuila following US$1.75 million in investment. The facility provides high quality repairs, maintenance and engineering changes for molds and tooling.
• Health care: A consortium of public and private institutions in Monterrey, Nuevo León, is projecting investment of US$400 million over the coming years to develop a health care cluster to be called “Monterrey City of Health”.  The project involves hospitals, laboratories, universities and research centers, and is intended to attract patients and health professionals from elsewhere in Mexico and around the world for advanced care and professional opportunities.
• Steel: South Korean steel maker Posco announced plans to invest US$300 million to build the second stage of a galvanized steel plant in the northeastern state of Tamaulipas.  The producer of steel for Mexico’s auto industry announced that the pace of expansion of its Mexico operations was among the fastest in its history.
• Cosmetics: Turkish cosmetics laboratory B’iota will invest US$30 million in an effort to enter the Mexican market for their skin care products.  The company is specifically targeting the segment of depilatory products, which expanded by a reported 76% in 2010.
• Logistics: U.S.-based operator of industrial distribution facilities Prologis plans to invest up to US$88 million in its recently inaugurated Ladero Intermodal Terminal & Industrial Park outside of Mexico City.  US$14 million of the resources were used to open the first phase of the facility.  Prologis became the world’s largest operator of its type this year through a merger with AMB Property Corporation.
• Tourism: Mexico’s first domestically owned and operated cruise ship line, Ocean Star Cruises, is investing US$100 million in the first phase of its service launch this year.  The company began offering routes along the country’s Pacific coast in April 2011 with calls at Puerto Vallarta, Cabo San Lucas, Manzanillo, Ixtapa and other locations.
• Energy: Spanish energy multinational Abengoa will build a new electricity generating plant in the northwestern state of Baja California Sur.  The US$91 million power plant is projected to come on line in 2013.
• Energy: Spanish solar panel manufacturer Siliken inaugurated a new US$27 million production plant in the northern city of Tijuana, near San Diego.  Siliken joins Kyocera and United Solar Systems in Tijuana’s solar manufacturing community.
• Mining: Canadian mining company Goldcorp will invest US$400 million to expand gold and silver operations at three of its mines in the northern state of Zacatecas.  Goldcorp’s aggressive growth in the area is a key part of robust activity currently taking place in the Mexican mining industry.

Please see About for our Mexico Today participation disclosure

Reports on some recent and upcoming investment collected from the local business media:

• Beverage: Mexico’s leading beer producer, Grupo Modelo, announced plans to invest US$400 million in 2011 in upgrades and expansion.  Resources are earmarked for improvements to the company’s production plant in Coahuila and to support market share gains in the U.S., Canadian and Australian markets.
• Automotive: Italian tire maker Pirelli is initiating construction on a new US$210 million production facility in Mexico’s central state of Guanajuato.  The major plant will produce car and truck tires for the domestic Mexican market as well as for the rest of North America.
• Food processing: Snack food and beverage giant PepsiCo inaugurated a new Financial Services Center in Mexico City.  The US$2.7 million facility, which will handle financial and administrative corporate operations for Central America and the Caribbean, is part of the company’s five-year plan to invest US$3 billion in the region in infrastructure and community relations.
• Energy: Spanish energy conglomerate Gas Natural Fenosa revealed upcoming investment plans for Mexico including approximately US$60 million for natural gas distribution projects and US$50 million for electricity generation.  The company’s electricity generating capacity in Mexico represents 15% of the country’s independent production capacity, according to their own estimates.
• Information technology: Tech giant IBM recently opened a new Innovation Center in the Santa Fe area of Mexico City.  The center, which joins the company’s global network of 39 such sites, provides services such as training and testing facilities, consulting, technical infrastructure and marketing assistance.
• Logistics: French processed foods maker Danone inaugurated a new US$24 million distribution center in the central Mexican state of Guanajuato.  The facility, which reportedly includes the largest refrigeration system in Mexico, will boost distribution of the company’s yogurt and bottled water products in the country.
• Autoparts: U.S.-based autoparts manufacturer Delphi Packard began construction on a new production plant in the northern state of Durango.  The US$11 million facility is planned to manufacture electrical parts and harnesses. Delphi already operates 43 other plants in Mexico.
• Aerospace: Mexican manufacturing facilitator American Industries plans to build a new aerospace-focused industrial park in the central state of Queretaro.  The planned US$80 million AeroTech Industrial Park will support the state’s continually expanding aerospace manufacturing cluster.
• Real estate: Mexican commercial real estate developer Mexico Retail Properties (MRP) will initiate construction next month on two new shopping centers in Mexico City.  The two developments, representing investment of US$250 million, will be among the first in Mexico to utilize Asian-style vertical distribution.
• Aerospace: Canadian aerospace manufacturer Héroux-Devtek announced it will build a new production plant in the Parque Aeronáutico Querétaro in Central México.  The US$21 million facility, which joins Querétaro’s burgeoning aerospace industry, will produce components principally for Canadian aircraft maker Bombardier.

Reports on some recent and upcoming investment collected from the local business media:

• Energy: U.S. energy giant General Electric inaugurated an advanced research center in the central Mexican state of Queretaro.  The US$20 million facility, located close to one of Mexico’s leading aerospace clusters, will contribute to the design of airplane turbines and power generation systems.
• Retail: Mexico’s leading retailer, Wal-Mart de Mexico, revealed plans to invest US$1.2 billion in Mexico in 2011.  The record-setting amount will help cover the opening of a projected 365 new retail locations across the company’s formats.
• Electronics: German electronics manufacturer Siemens is investing a combined US50 million in new assembly and testing infrastructure in the central state of Queretaro.  The facilities will produce equipment for high voltage systems as well as contribute to new product development.
• Manufacturing: Construction is underway on the fifth Mexico plant of Dutch lighting products manufacturer Philips.  The new facility, located in the northeastern city of Monterrey, is planned to produce lighting equipment for residential, industrial, commercial and municipal applications.
• Transport: Kansas City Southern railroad’s Mexico subsidiary announced plans to invest US$125 million in upgrades this year.  The 2011 resources, an increase over 2010, are earmarked for infrastructure development, railway network maintenance and the purchase of equipment and technology.
• Retail: Leading Mexican grocery and general merchandise chain Soriana will invest US$300 million to open new stores in 2011, the company announced.  Planned store openings include aggressive expansion of the chain’s downscale “Soriana Express” format.
• Food processing: Food and beverage giant Pepsico will invest US$40 million in Mexico over the next seven years to expand the cultivation of sunflower.  Oil from the plants will be used in the production of the company’s baked goods under the brands Sabritas, Gamesa and Quaker.
• Beverage: Coca Cola bottler KOF, subsidiary of the Mexican beverage conglomerate FEMSA, announced US$500 million in investments planned for Mexico in 2011.   The bottler posted strong earnings in 2010 and in evaluating further expansion into Central and South America in the near term.
• Autoparts: Japanese rubber maker Kinugawa Rubber Industrial Co. inaugurated a new manufacturing facility in the central state of Guanajuato.  The US$10 million plant will produce rubber, plastic and resin parts as well as insulation and hoses for local auto makers.
• Mining: Fresnillo, a division of Mexican mining group Peñoles, plans to invest US$800 million in upcoming expansion and exploration.  US$250 million of the resources are earmarked for exploration in central Mexico, as Fresnillo seeks to become the world’s largest producer of silver.
• Food processing: Mexican food processing giant Grupo Herdez will open a new distribution center in the state of Mexico in 2011.  The US$80 million facility will become the company’s 10^th distribution center in the country, in addition to 10 production plants.
• Aviation: Mexican airline Aviacsa has invested US$40 million in preparation for its return to commercial passenger operations, following suspension of activities in 2009 due to financial problems.  Resources have been channeled into preparation of aircraft, outfitting of hangars, offices and maintenance facilities and personnel training, among other needs.
• Clean energy: The Mexico City Police Department (PGJDF) acquired a fleet  of 23 new electric-powered vehicles to replace gasoline-powered vehicles being taken out of circulation.  The electric cars are projected to save the agency approximately US$4,000 per month in gasoline costs.
• Hospitality: Some 19 hotel construction or remodeling projects will generate over US$190 million in investment in Mexico City this year, according to the Mexico City Hotel Owners Association.  Particular emphasis is being placed on boutique and express hotel formats at this time.
• Steel: Argentinian steel maker Ternium began construction on a major new production plant in the northeastern state of Nuevo León.  Plans call for US$2.3 billion in investment overall in the facilty, which will produce high quality steel for use by regional auto manufacturers.
• Cement: Swiss cement maker Grupo Holcim’s Mexico subsidiary Holcim Apasco inaugurated a new production facility in the northern state of Sonora this month.  The US$400 million facility includes cutting-edge technologies for renewable energy generation, waste recycling and overall mitigation of environmental impact.
• Aerospace: Federal and state governments will team up to invest US$50 million to build Mexico’s first aerospace testing laboratory in the central state of Queretaro.  The facility will allow manufacturers of the area’s booming aerospace sector to have their products tested locally with international validity rather than sending them to the United States for certification.
• Clean energy: Mexican beverage giant FEMSA will lead a group of investors in building a new wind power generation plant in the southern state of Oaxaca.  The US$90 million project planned to include 132 wind generators to produce capacity of 396 Mw.
• Steel: Mexican steel maker Grupo Villacero inaugurated a new steel service center and helical tubing plant in the northeastern state of Nuevo Leon, built at a cost of US$107 million.  The center is the first of four such facilities planned for construction by 2015.

Reports on some recent and upcoming investment collected from the local business media:

• Aviation: Mexican airline VivaAerobus will invest US$30 million this year to acquire eight Boeing 737-300 aircraft.  The principally domestic carrier will use the new planes to add domestic and possibly international routes as well.  VivaAerobus has expanded steadily since entering the market in 2006.
• Automotive: U.S. automaker General Motors announced plans to invest US$540 million to expand production at its existing plant at Toluca, just west of Mexico City.  The added infrastructure will accommodate production of two new models of energy efficient engines.  GM is Mexico’s largest auto maker.
• Energy: Spanish renewable energy developer Iberdrola plans to invest US$400 million in its Mexico operations through the end of 2012.  Iberdrola recently purchased an existing wind farm in southern Mexico from fellow Spanish energy firm Gamesa, and is currently building another wind farm in the same region.
• Logistics: Hutchison Port Holdings will undertake US$200 million worth of expansion and upgrades at the Port of Lazaro Cardenas on Mexico’s Pacific coast this year.  Planned works include dock construction, addition of berths and expansion of switching and storage yards to handle cargo containers.
• Aviation: Mexican domestic air carrier Interjet announced plans to invest over US$90 million over the coming two years.  The resources are earmarked for tripling the capacity of the airline’s maintenance center and acquiring a substantial number of new aircraft.  Interjet reportedly will become the first Latin American airline to use Sukhoi jets, of Ruso-European manufacture, on its scheduled routes.
• Automotive: U.S. automaker General Motors will invest US$300 million to upgrade and adapt its manufacturing plant in the northeastern state of San Luís Potosí.  Expansion of the plant is intended to accommodate production of a new compact model not currently being built in Mexico.
• Manufacturing: U.S.-based furniture manufacturer Furniture Brands is investing US$20 million to outfit an existing maquiladora plant in the southeastern state of Yucatan to produce cut-and-sew kits for its U.S. upholstery operations.  The facility is expected to initiate production in mid-2011.
• Transport: Mexican rail freight operator Ferrosur will invest US$21.1 million to acquire nine locomotives for its fleet of rolling stock.  The new fuel-efficient engines, made by general Electric, will help the freight carrier meet high transport demand from state-owned petroleum producer Pemex.
• Energy: Mexico’s Federal Electricity Commission (CFE) will invest some US$220 million this year in projects to support electricity generation and transmission in the northwestern Baja California region.  The Energy Ministry is projecting 25% growth in electricity consumption in the area by 2025.
• Automotive: Japanese automaker Nissan announced combined investment of US$900 million from 2010 through 2012 in its Mexican manufacturing operations.  The resources will support manufacture of three new vehicle models at the company’s plants in the states of Aguascalientes and Morelos.
• Retail: Retailers belonging to the National Retailers Association (ANTAD) will invest US$3.6 billion in 2011, according to ANTAD.  The bulk of the resources will be channeled into new store openings, remodeling and upgraded technology.
• Airports: Mexican airport operator Grupo Aeroportuario del Pacifico (GAP) plans to invest some US$83 million this year in maintenance and expansion of its airports.  The group’s 12 locations include the airports of Guadalajara, Puerto Vallarta and Tijuana.
• Automotive: Canadian auto parts manufacturer Magna International announced plans to construct a new production plant in the northeastern Mexican state of San Luís Potosí.  The US$100 million facility, intended to supply parts to OEM vehicle manufacturers in central and northern Mexico, is projected to open in June 2012.
• Energy: Construction is set to begin on the Mexican Renewable Energy Center (Cemer) in the central state of Guanajuato.  The new specialized research center will require a projected US$29 million for construction as well as laboratory and office equipment and vehicles.
• Manufacturing: Dubai-based steel pipe manufacturer Tenaris will invest US$30 million this year to open a plant in Mexico to produce rods for pumping purposes.  Mexican subsidiary TenarisTamsa recently initiated the first stage of manufacturing operations at a new US$1.6 seamless pipe manufacturing complex in  the eastern state of Veracruz.
• Healthcare: Mexican Hospital Operator Grupo Christus Muguerza plans to invest at least US$10 million in new projects in the northeastern state of Nuevo Leon this year.  Resources are earmarked for hospital renovations and a new mobile surgery unit, among other uses.
• Beverage: Bevidisa, a subsidiary of Mexican soft drink producer Pascual Boing, began construction of a new manufacturing plant in the northeastern state of Nuevo León.  US$7.5 million facility will produce soft drinks and flavored popsicles for the U.S. market.

MBAE & Helimex, a trade show focused on aviation equipment and services for business use, will be held February 28 to March 2, 2011 at the Toluca International Airport just west of Mexico City.  The show features 40 – 50 industry-specific exhibitors and is closed to the general public.  Toluca is the principal hub of Mexico’s business aviation industry.  For more information, see www.mbaeexpo.com .