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.

Jatropha

Chiapas state capital Tuxtla Gutierrez has become Mexico’s first city to implement public transportation run on biodiesel, local media and the Chiapas state government have announced.  In early January 2010, the city’s mass transit system introduced two bus routes served by 71 new vehicles running on biodiesel produced in the state.  The buses will run initially on a 20/80 mixture of biodiesel and conventional diesel, but are planned to switch to a 50/50 mix mid-month and ultimately to 100% biodiesel by March.  The new technology will replace 143 vehicles that previously ran on fossil fuels.

The biodiesel to supply the Tuxtla buses is produced from jatropha grown in Chiapas under a government program designed to offer local farmers a profitable alternative to subsistence agriculture.  The state currently has 10,000 hectares under jatropha production, and a biodiesel plant with capacity to produce up to 20,000 liters per day, according to information provided by the Governor’s public affairs office.  Chiapas is also producing oil palm and castor oil plants for future use in biodiesel production.