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:

• Retail: USA-based apparel marketer Warnaco revealed plans to open approximately 30 new stores in Mexico over the next two years.  Mexico sales were up by 39% through the first half of 2011 for the marketer of brands such as Calvin Klein and Speedo. (Reforma, August 25, 2011)
• Logistics: Mexican cargo terminal operator Ferrovalle Intermodal announced a US$10 million expansion to its rail cargo handling facilities in Mexico City to be carried out this year.  The addition of 25 developed acres to the terminal will increase annual handling capacity to over 550,000 containers and speed last-mile deliveries. (Reforma, August 1, 2011)
• Entertainment: Mexico City’s largest film studio, Estudios Churubusco, will expand with the construction of a new post-production building.  The investment of approximately US$20 million will include over 30,000 square feet of digital laboratory space, production warehousing and offices. (Reforma, September 6, 2011)
• Infrastructure: Spanish infrastructure developer OHL Group, through its environmental subsidiary Inima, will build and operate a large-scale desalination plant in the northern Mexican state of Baja California.  The US$41 million facility is planned to produce 275 million cubic feet of potable water annually. (Reforma, September 7, 2011)
• Energy: Spanish renewable energy developer Siliken will invest US$20 million initially to build and launch a 100 MW solar power plant in the northern state of Durango.  The project is planned to include a research and development center in addition to generating electricity. (Milenio, September 8, 2011)
• Autoparts: Japanese industrial automation manufacturer Omron Corporation will invest US$30 million to build a new production plant in the central Mexican state of Guanajuato.   The facility will join recently announced new factories to be built by Honda and Mazda in Guanajuato’s growing automotive industry. (El Sol de Irapuato, August 27, 2011)
• Biotechnology: Mexican agricultural biotechnology laboratory Biosustenta inaugurated a new plant to produce biofertilizers in the western state of Michoacán.  The US$1.3 million facility will use mycorrhizal fungi and other bacterias to produce the fertilizers.  Biosustenta currently exports product to the United States, Canada and Europe. (El Financiero, August 30, 2011)
• Infrastructure: Quintana Roo state port authority Apiqroo will oversee the construction of a new cruise ship dock on the tourist island of Cozumel.  The US$40 million terminal is planned to serve the growing traffic of cruise ships to the resort island south of Cancun. (El Financiero August 30, 2011)
• Mining: Mexican mining concern Minera Autlán revealed plans to invest US$300 – 400 million over the next five years in a range of expansion initiatives.  Projects to be carried out include development of a new manganese mine, construction of a new ferroalloys plant and diversification of their manganese products to serve additional industries. (Reforma, September 9, 2011)
• Energy: Spanish energy developer Preneal will construct a wind-powered electricity generation plant in the northern state of Zacatecas, state officials announced.  The US$300 million project is projected to have an installed capacity of 100 MW. (Milenio, September 4, 2011)
• Electronics: USA-based Spellman High Voltage Electronics Corp. inaugurated a new manufacturing and testing plant in the border city of Matamoros.  The US$15 million facility will provide additional capacity for the production of power supplies and X-ray generators as well as testing for Spellman’s other production plants. (El Mañana de Reynosa, August 18, 2011)
• Food processing: U.S.-based PepsiCo is nearing completion of a new Advanced Baking center under construction at the Research and Technology Innovation Park in the north eastern state of Nuevo León.  The US$20 million facility will develop new baked products for the company’s Gamesa and Quaker brands. (Reforma, September 13, 2011)
• Chemicals: Mexican industrial group Grupo Cydsa announced plans to invest over US$100 million to build two new manufacturing plants and expand a third.  The new facilities will produce bleach, caustic soda and other chemical products, while expansion is planned for the company’s existing salt refinery in the Gulf state of Veracruz. (El Financiero, September 13, 2011)
• Retail: Upscale Mexican department store chain Liverpool will invest up to US$450 million to open seven new stores in Mexico in 2012.  Same-store sales rose 8.4% in 1H11 for the leading retailer and mall operator. (CNN Expansión, September 13, 2011)
• Manufacturing: Danish toymaker Lego announced plans to invest US$100 million in its manufacturing plant located in Monterrey, Nuevo León.  The resources are earmarked to expand capacity at the facility, which makes products for the Mexican market as well as for export to the USA and Canada.  Lego sales in Mexico are growing by double digit percentages annually. (El Financiero, September 14, 2011)
• Energy: Mexican energy consortium Baja Sun energy will invest over US$500 million to develop a major complex in Baja California that will manufacture solar panels as well as generate solar electricity.  Investors include Arima Eco Group of Taiwan, joint U.S.-Mexican solar developer Silicon Border and Mexican specialized builders Grupo Maíz. (San Francisco Chronicle, September 12, 2011)
• Retail: U.S.-based DIY retailer The Home Depot announced planned investment of US$260 million in Mexico by the end of 2012.  The resources will support the opening of 13 new stores in the country to reach a total 100 locations. (Reforma, September 22, 2011)
• Pharmaceutical: Mexican pharmaceutical laboratory Landsteiner Scientific began construction on a new research center in the central city of Toluca to be built at a cost of approximately US$37 million.  The site is planned to include facilities for research as well as the production and distribution of medications. (Bolsa Mexicana de Valores, September 20, 2011)

To read about our participation in the Mexico Today program, go 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.

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:

• 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.

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.

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

• Retail: Grocery and general merchandise retailer Grupo Chedraui revealed plans to double its stores in Mexico to 280 in the coming years.   The chain, now third largest in its sector in the country, has grown rapidly in recent years and currently operates 143 retail locations.
• Logistics: Mexican logistics and transport firm Grupo Transportación Marítima Mexicana (TMM) will begin construction in 2011 on a new multimodal terminal at the Port of Tuxpan, on the coast of the Gulf of Mexico.  The US$350 million facility is planned to handle liquid, solid and container cargo.
• Energy: Eoliatec de Mexico, subsidiary of Spain’s Eolia Renovables, signed contracts with communal farmers in Jalisco helping to clear the way for the development of the state’s first wind farm.  The firm projects investment of US$185 million in the electricity generation facility with a capacity of 60Mw.
• Manufacturing: Brazil-based Embraco, a manufacturer of refrigeration compressors, announced plans to begin manufacturing at a new plant in Apodaca, Nuevo Leon in 2011.  The US$90 million investment will allow the company to serve Mexico’s refrigerator manufacturers via domestic production, in addition to exporting to the United States and Canada.
• Biofuel: A new bio-diesel plant is currently under construction in the southeastern state of Chiapas, set to begin production in early 2011.  The US$3.5 million dollar facility, financed jointly by various federal government agencies, will use locally grown African palm and jatropha to produce diesel fuel to supply public transportation systems in the cities of Tuxtla Gutierrez and Tapachula in the state.
• Manufacturing: Industrial gas maker Praxair initiated production at a new air separation unit at its existing facility in San Nicolas de la Garza, outside of Monterrey.  The plant operated by the U.S.-based company’s Mexican affiliate, Praxair México, serves the industrial gas needs of a variety of clients in northeastern Mexico.
• Real Estate: Spanish banking group Santander announced it will build a new corporate office building in downtown Monterrey.  The US$40 million project, set to begin construction in early 2011, will become the city’s tallest building.
• Metal forming: Canadian-owned Troquelados de Queretaro inaugurated a new die cutting plant in the central state of Queretaro.  The firm invested US$12 million in the facility, which will produce parts principally for the region’s automotive industry.
• Automotive: Italian tire maker Pirelli is projecting investment of US$210 million in new production facilities in Guanajuato, Mexico over the next five years.  The leading tire maker, which currently operates eight manufacturing plants in Mexico, will produce tires for OEMs in the area as well as for the aftermarket.
• Automotive: Neaton Auto Mexicana, subsidiary of Japanese autoparts maker Neaton Auto Products, will invest an initial US$8.5 million in land and construction to build a new manufacturing facility in Queretaro in 2011.  The plant is planned to produce air bags for Nissan, Honda and Toyota auto makers in Mexico.
• Nanotechnology: Nuevo Leon’s growing nanotechnology cluster will be further strengthened by the addition of new facilities at the Technological Research and Innovation Park (PIIT) located outside Monterrey.  Construction planned to begin imminently will create new infrastructure for the Institute of Electricity Research (IIE), the Center for Mathematical Research (CIMAT), the Ensenada Center for Scientific and Higher Education Research (CICESE) and the Nuevo Leon Technology Institute.  The area’s nanotechnology cluster currently consists of 38 companies or organizations and is projected to grow to 50 over the next two years.
• Food processing: Mexican industrial baking giant Grupo Bimbo agreed to a US$959 million acquisition of the fresh bakery operations of Sara Lee Corp.  The takeover, expected to be completed in the first half of 2011, will make Bimbo the largest industrial baker in the United States.
• Coatings: Mexican coatings multinational Comex revealed plans to invest up to US$100 million to construct at least three new production plants in 2011.  The company will distribute the investment among facilities in Mexico, Central America and Canada.
• Telecommunications: Mexican retail bank Banorte announced it will build a major new call center in Monterrey in 2011.  The US$80 million project will allow the company to consolidate its telephone and internet-based customer service operations in one location.
• Retail: Mexico-based department store chain Sanborns plans to invest up to US$40 million to open 10 new retail locations in 2011.  The company, which currently operates 192 stores in Mexico, Panama and El Salvador, also confirmed it is considering opening a store in New York.
• Automotive: Automaker Chrysler de Mexico inaugurated a new US$570 million manufacturing plant in the northern city of Saltillo.  The new facility, the company’s sixth in Mexico, will produce motors for Chrysler, Dodge and Jeep vehicles.
• Real Estate: Commercial real estate developer Gigante Grupo Inmobiliario (GGI) inaugurated a new shopping center in the State of Mexico built at a cost of US$67 million.  Since selling its Gigante grocery store chain to former rival Soriana in 2007, Gigante has become active in mall development and is beginning to undertake residential development as well.
• Retail: DIY retailer The Home Depot announced plans to open seven new stores in Mexico in 2011, expanding their total number of locations in the country to over 90.  The company projects investment of approximately US$120 million next year between new stores and maintenance for existing stores.