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.

• 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.

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.

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 .

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

• Retail: Mexican franchise operating group Alsea announced plans to invest approximately US$400 million over the next five years to open new stores.  The licensee  in Mexico of brands such as Domino’s, Starbucks, Burger King and Chili’s, Alsea will also add locations in Chile, Argentina and Colombia.
• Energy: Mexican industrial baking giant Grupo Bimbo announced the initiation of construction of a major wind farm in southern Mexico that is intended to supply nearly 100% of the company’s domestic electricity needs.  The majority of the US$200 million investment in the site will be supplied by Spanish renewable energy developer Renovalia, which will build and operate the facility.
• Manufacturing: U.S.-based tile and floor covering materials producer Dal-Tile Corp. will invest US$111 million in a new manufacturing plant in the central city of Salamanca, Guanajuato.  The new facility, planned for construction in 2011, will become the second plant in Mexico operated by local subsidiary Daltile de México.
• Recycling: Member companies of the Mexican plastic bag industry association (Inboplast) will invest over US$12 million in the development of 24 bag recycling plants beginning next year.  The plants are intended to take greater advantage of underutilized plastic in Mexico City’s enormous landfills.
• Energy: Dubai-based alternative energy developers Rubenius announced plans to invest up to US$4 billion to construct a large scale energy storage facility in Mexicali, Mexico near the U.S. border.  The site is planned to store 1,000 Mw of solar, wind and geothermal energy for distribution to grids in both Mexico and the United States.
• Transport: Rail freight operator Ferrocarriles Mexicanos estimates combined investment of US$470 million between the second half of 2010 through the end of 2011.  Projecting growth of 27% in cargo volume for the current year, the freight carrier indicated investment will be focused on infrastructure upgrades and acquisition of locomotives.
• Retail: Mexico’s leading upscale department store chain, Liverpool, plans to double its pace of expansion beginning in 2011.  The company projects opening approximately 10 new stores annually over the next five years, in anticipation of an improved economy.
• Automotive: Kostal Mexicana, subsidiary of German automotive electronics maker Kostal GmbH, inaugurated a new manufacturing plant this month in the central city of Acámbaro, Guanajuato.  The facility will produce control panels for dashboards, doors and steering columns.
• Aviation: Mexican air carrier Aeromexico announced plans for fleet expansion with the acquisition of 25 additional aircraft over the next three years.  The airline, which projects investment of US$1 billion for the new planes, has benefitted to some degree from the suspension of operations by rival Mexicana.
• Aerospace: General Electric, through its Mexican subsidiary General Electric Infrastructure Queretaro (GEIQ), completed construction of a new Center of Excellence in the central state of Queretaro.  The US$50 million center, set for inauguration in the coming weeks, will provide design services for GE’s aerospace turbine manufacturing operations.
• Telecommunications: The Mexican government announced an order with Boeing Co. for nearly US$ 1 billion worth of satellite communications equipment.  The contract includes three satellites as well as ground-based communications infrastructure, to be delivered over three years.
• Beverage: Ajemex, the Mexican subsidiary of Peruvian beverage bottler Ajegroup, revealed plans to invest US$17 million to build a new production plant in northern Mexico in 2011.  The South American beverage maker currently produces soft drinks at six plants in Mexico.
• Software: Mexican software developer InterLatin announced plans to invest US$ 2 million in 2011 to expand operations.  The investment program includes opening offices in Mexico City and Tijuana to support the company’s focus on Product Lifecycle Management products and services.
• Personal care: Depelle, a Mexican chain of IPL hair removal salons, will expand aggressively over the next three years with the opening of over 500 additional locations.  The company was launched in 2010 with the departure of competitor Neoskin from the Mexican market.

Mexico’s aerospace industry has posted astounding growth in recent years, turning the country into a key global aerospace manufacturer in the process.  Mexico has been the world’s number one destination for aerospace manufacturing investment over the past two decades, with over US$1 billion in 2008 alone, according to the recent report Aerospace Globalization 2.0: The Next Stage, by industry consultants AeroStrategy.  The country’s aviation industry has flown through quite a bit of turbulence (sorry) over the same period, but nonetheless represents an important market for products and services, between the commercial airlines, private air transport service providers and law enforcement and military fleets.  The biennial Aero Expo coming up December 3-5 offers a great opportunity to meet the key players in NAFTA-region aerospace and aviation.  Um, in Acapulco.

For information on the expo: www.aeroexpo.com.mx

Check out AeroStrategy’s report at their site: www.aerostrategy.com