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:

• Beverage: Netherlands-based Heineken International, through its Mexican brewing operation Cuauhtemoc Moctezuma (CM), invested over US$37 million to boost sales of the brewery’s Carta Blanca beer brand.  Resources were channeled into areas such as a new returnable bottle, label design and delivery truck modifications.  CM was acquired by Heineken in 2010. (Vanguardia, October 28, 2011)
• Energy: Mareña Renovables Capital, S.A.P.I. de C.V., controlled by an investment consortium led by Australia’s Macquarie Group, will build Mexico’s largest wind farm to date in the southern state of Oaxaca.  The 396 MW electricity generating site will supply energy to beverage giant FEMSA, which will co-finance construction with assistance from a US$72 million loan from the Inter-American Development Bank (IDB). (Inter-American Development Bank, November 24, 2011)
• Logistics: Mexico’s rail freight operators are projecting combined investment of approximately US$350 – 450 million annually in the coming years, according to the Mexican Railroad Association.  Resources are targeted principally for modernization and upgrade of infrastructure. (Reforma, November 9, 2011)
• Energy: Mexico’s Federal Electricity Commission (CFE) is projecting that public agencies and private companies will invest a combined US$10.5 billion to expand the country’s natural gas pipeline network.  Projects include eight new pipelines, which will help support planned conversion of power plants from fuel oil to natural gas. (Reforma, November 9, 2011)
• Automotive: U.K.-based auto parts manufacturer GKN Driveline is projecting total investment in its Mexico operations at US$46 million for 2011.  The expenditures are focused on reinforcing metal forming, machining and assembly operations to increase production at the company’s three plants in the central state of Guanajuato. (Reforma, November 21, 2011)
• Pharmaceutical: German pharmaceutical manufacturer Boehringer Ingelheim inaugurated a new production plant in the western state of Jalisco.  The US$10 million facility will produce biological veterinary products for poultry, swine and cattle applications. (NAFTA Works, November, 2011)
• Retail: Mexico’s national retailers association ANTAD is projecting total investment of US$3.6 billion in new store openings and remodeling for 2011.  The sector has performed well this year despite the uncertain economic climate, with leading grocery and general merchandise chains Wal-Mart and Chedraui reporting total sales growth of 12% and 11.9%, respectively, through September. (Reforma, November 7, 2011)
• Biotechnology: The central state of Morelos plans to invest approximately US$25 million to establish a biotechnology park in the city of Cuernavaca.  The state is offering a series of incentives that they project will attract some 40 – 50 research and manufacturing operations to the facility.  (Reforma, November 11, 2011)
• Logistics: U.S.-based university The Georgia Institute of Technology, in conjunction with Mexico’s Monterrey Technological Institute (ITESM), recently opened a Trade and Logistics Innovation Center in Mexico City.  The center will provide executive education and advanced research in areas such as lean supply chain, transportation, warehousing, inventory, trade and supply chain strategy.  (GlobalAtlanta.com, September 29, 2011)
• Automotive: U.S.-based auto parts manufacturer TRW Automotive Holdings Corp. announced it will open a new production plant in the central state of Queretaro in 2012.  The planned facility machine aluminum components and assemble advanced brake systems in a clean-room environment.  The amount of investment was not reported. (American machinist, November 23, 2011)
• Telecommunications: Mobile network operator Nextel de Mexico is projecting investment of approximately US$1.4 billion over the next five years.  The company currently reports a client base of 3.5 million subscribers in Mexico. (Mexican Business Web, September 21, 2011)
• Aerospace: Canadian aerospace manufacturer Héroux-Devtek inaugurated a new production plant in the central state of Queretaro this month.  The US$20 million facility will produce aerostructure components for OEMs also located in the fast-growing Queretaro aerospace cluster, the company announced. (Héroux-Devtek press release, November 15, 2011)
• Railroads: Mexico’s rail freight operators project investment of a combined US$500 million in 2012.  Companies including Ferrocarril del Sureste, Ferromex, Kansas City Southern, Ferrocarril Tijuana-Tecate and Ferrocarril Coahuila-Durango will channel the resources into infrastructure development and new equipment. (El Financiero, November 15, 2011)
• Automotive: German heavy vehicle manufacturer MAN Truck & Bus, via its Mexican subsidiary, will invest US$15 million to expand and upgrade capacity at its plant in the central state of Queretaro.  The resources are earmarked to outfit work stations and supply lines for the production of 14 new vehicle models. (Reforma, November 22, 2011)
• Retail: DIY retailer The Home Depot announced aggressive expansion plans for 2012, projecting investment of US$143 million in a drive to increase its Mexico stores from 91 to 100.  The Home Depot acquired Home Mart in Mexico in 2004 and is currently the country’s largest home improvement and construction products chain. (Mexican Business Web, November 24, 2011)

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.

• 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.
• Pharmaceutical: Mexican pharmaceuticals manufacturer Grupo Silanes will invest US$20 million to construct a new production facility in the city of Toluca, near Mexico City.  The plant will produce the company’s Anascorp antidote for scorpion stings, recently approved for sale in the United States by the U.S. FDA.
• Real Estate: U.S.-based real estate developer Bald Mountain Development is preparing to construct a luxury hotel and housing complex in the central Mexican city of San Miguel de Allende.  The US$250 million project may be followed by two similar developments elsewhere in the country, according to the company.
• Aviation: U.S. commercial air carrier Delta announced a US$65 million investment in Mexican carrier Aeromexico in exchange for stock and a seat on the Mexican airline’s board of directors.  The deal includes additional US$20 million investments from each company to expand joint maintenance and repair capabilities in Mexico.
• Steel: Mexican steel industry leader Altos Hornos de México (AHMSA) announced US$493 million in new investment to conclude an ongoing production capacity expansion project.  The steel giant seeks to enhance capability to produce specialized steels for automotive, metal mechanic and other manufacturing industries.
• Retail: Mexico’s ANTAD national retailers’ association announced combined investment of US$3.6 billion by its members projected for 2011.  First half retail sales were up 10.3% in nominal terms and 3.8% for same-store sales this year, the group reported.
• Mining: Mexico’s mining industry chamber Camimex reported its members will invest US$848 million in exploration of new deposits this year.  The record sum is driven in part by surging demand for gold on world markets.
• Logistics: Germany-based courier DHL Express will open 24 new sales locations in Mexico in 2011 at a cost of approximately US$2.5 million, in addition to opening a new gateway site in Monterrey this year.  The expansion is part of a five-year US$125 million investment program for the company’s Mexico operations.
• Infrastructure: Mexico’s Communications and Transportation Ministry (SCT) announced it will issue a tender for road construction in the western state of Michoacan by the end of this year.  The contract package for construction and widening of highways in the state will have a projected value of approximately US$450 million.
• Energy: British oil and gas infrastructure services provider Petrofac announced plans to invest US$200 million in Mexico over the next two years.  Petrofac recently was awarded two contracts by state oil monopoly Petroleos Mexicanos (Pemex) to increase output at mature oil production sites in Mexico.

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.

To Russia with love

Much wringing of hands is done in Mexico over the country’s excessive dependence on the United States as the primary market for its exports.  With good reason: For years now, the United States has accounted for over 80% of Mexico’s goods exports.  In boom times, Mexico makes hay while the sun shines.  But when the U.S. economy tanks, like it did in a big way in 2009, Mexico suffers severely.  The Mexican government has aggressively pursued trade pacts elsewhere around the world in the hope that local exporters would follow through with enthusiasm in exploring new markets.  It seems to us, though, that Mexican exporters overall have shown little thirst for adventure in foreign lands.  But maybe, with the U.S. economy still slow to gain strength after the long recession, new opportunities are beginning to capture the attention of more Mexican companies.

A look at export figures provided by the Economy Ministry (SE) reveals some interesting details.  First, while the United States was the destination for just about 80% of Mexican exports in 2010, this percentage actually has been declining slowly since a high of 88% in 2002.   A closer look suggests that Mexico has been taking advantage of strong demand from the BRIC economies: exports to Brazil grew by an incandescent 325% from 2005 to 2010, while exports to China increased by a merely torrid but nonetheless impressive 270% over the same period.  China has come from a long way off to become Mexico’s third largest export market as of 2010.  Mexico has also taken advantage of partial bans on Brazilian beef by Russia, developing an important new market in the process.  The value of Mexican exports of frozen beef cuts to Russia through May 2011 had surpassed US$41 million, higher than at least the four previous years combined.

Perhaps the most intriguing growth market for Mexico right now is Japan.  Mexico’s exports to Japan did rise following a trade liberalization agreement that entered into effect in 2005, but the pace of growth has been uneven.  Through May 2011, Mexican exports to Japan are on a record pace, led by the automotive industry and food products.  The current strong performance may be receiving an unusual push due to distortions in the Japanese market following the earthquakes and tsunami early this year.  Nonetheless, the increased presence of Mexican meats and fruits in Japan should help pave the way for the introduction of more variety and greater volumes of Mexican products in the future.

Could Mexico be setting its sights on the Middle East next?  An Agriculture Ministry (Sagarpa) representative recently cited growing numbers of Mexican food producers seeking kosher and halal certification.  The results may yet be a ways off, but we like where this is heading.

To read about our participation in the Mexico Today program, 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:

• Mining: Canadian mining firm Chesapeake Gold Corp. will invest up to US$3.5 billion over the coming years in a large scale project to develop gold and silver extraction operations at its Metate site in Durango, northern Mexico.  The site is projected to become one of the world’s largest producers of the precious metals.
• Automotive: German auto parts manufacturer Schaeffler will invest US$120 million to boost its operations in central Mexico.  The resources will be used to expand production infrastructure at the company’s plant in Irapuato, Guanajuato, which produces parts for automobile motors, transmissions and chassis.
• Food processing: Mexican multinational baking giant Grupo Bimbo revealed plans for US$190 million worth of investment in Mexico this year.  Much of the resources are earmarked for upgrades to increase operational efficiency at the company’s 45 production plants in the country.
• Logistics: Mexican courier company Estafeta will build four new operations centers in Mexico beginning this year, as part of the firm’s US$37.5 million expansion plans for 2011.  Estafeta reported its cargo levels have returned to 2008 levels, and the company is projecting 6% growth for the current year.
• Automotive: Japanese tire giant Bridgestone will invest US$100 million this year to boost production capacity in Mexico.  The expanded output at Bridgestone plants in the cities of Monterrey and Cuernavaca is intended to meet demand in the United States.
• Energy: Mexican solar panel manufacturer Solartec is investing US$5.4 million to construct and equip a new research center in the central state of Guanajuato.  The goal of the new facility will be to develop technological improvements that will halve the cost of photovoltaic solar electricity systems in Mexico by 2015.
• Aviation: Aerolíneas Ejecutivas, Mexico’s leader in private executive air travel services, announced it will purchase 15 new U.S.-made HondaJet aircraft, at a cost of US$67 million.  The jet services company, which also becomes the HondaJet representative for Mexico as part of the deal, reported 23% growth in demand for private corporate jet services in Mexico in 2010.
• Manufacturing: GE Energy, subsidiary of energy multinational General Electric, will soon initiate production at a major expansion of their manufacturing facilities in the northeastern state of Nuevo Leon following transfer of operations from two plants in the United States.  The US$20 million project will produce a range of electric motors for industrial use.
• Mining: Mexican mining company Frisco is in the process of investing US$215 million to boost output at its Asientos mine in the northern state of Aguascalientes.  The resources are aimed at increasing production of gold, silver and zinc at the site.
• Retail: Comercial Mexicana, Mexico’s third largest grocery and general merchandise chain, announced it will invest approximately US$290 million in 2011 and 2012 to open 22 new stores and a distribution center.  The company operates two restaurant chains in addition to its 231 retail stores across eight formats.
• Banking: Mexico’s largest bank, Banamex, announced plans to invest US$20 million to install 500 new touch-screen automatic teller machines in shopping centers and other retail locations around the country.  The new machines are equipped with enhanced security features.