Follow

ECONOMY AND INDUSTRY

• Revenue from international tourism to Mexico jumped 256% in August with respect to the same month in 2020, according to data from the National Statistics Institute (INEGI). Nonetheless, income from international tourism remained 6.9% below the level registered in the same month of 2019. (Citibanamex Reporte Económico Diario, October 11, 2021)
• Mexico’s inflation rate through September as measured by the National Consumer Price Index (INPC) is 6.0%, Citibank subsidiary Citibanamex reported. The bank projects final 2021 inflation to reach 6.4%. (Citibanamex Estudios Económicos, October 7, 2021)
• Remittances to Mexico from abroad continued their remarkable performance in August, registering an increase of 32.7% over the same month the previous year, according to central bank Banco de México (Banxico) data. The value of remittances is running approximately 25% ahead of 2020 through the first eight months of this year. (El Financiero, October 1, 2021)

ECONOMIC ACTIVITY OF NOTE                                                                                             

• Automotive: German auto parts maker Continental announced the inauguration of a new production plant in the central state of Aguascalientes.   The US$60 million LEED-certified facility is expected to produce electronic components such as telematic control units, electronic control modules, door control systems, power closure modules and comfort seating systems. (Mexico Daily Post, October 30, 2021)
• Aerospace: French aerospace components manufacturer Safran inaugurated a US$1.8 million plant in the northern state of Chihuahua.  The new factory is expected to produce MaxFlex modular aircraft galleys. (Chihuahua State Government, October 5, 2021)
• Recycling: The Mexican subsidiary of Swiss processed foods giant Nestlé in alliance with UK-based Greenback Recycling Technologies announced they will build a plant in Mexico to recycle flexible plastic packaging. The site plans to use microwave-induced pyrolysis technology to convert the post-consumer plastic into pyrolysis oil. (Mexico Industry, October 2021)
• Healthcare: Canadian investment group Caisse de dépôt et placement du Québec (CDPQ) announced a significant but unspecified investment in Mexican medical diagnostic services provider Grupo Diagnóstico Aries (GDA). The network of blood banks, laboratories and mobile units plans to use the resources to expand and strengthen operations and carry out strategic acquisitions. (PR Newswire, October 18, 2021)
• Automotive: French automotive sub-assemblies producer Vernicolor inaugurated a new plant in the northern state of Coahuila, the company reported.  The US$6 million facility is planned to produce interior details and injection-molded plastic parts as well as undertake painting and assembly operations. (Inmobiliare, October 26, 2021)
• Logistics: U.S.-based food and beverage multinational Pepsico announced major upgrades to distribution centers in the southeastern state of Puebla and the northwestern state of Sonora. The US$170 million improvements will include construction of new warehouses, relocation of existing warehouse operations and upgrades to equipment and infrastructure, as well as measures to reduce carbon dioxide emissions. (Reforma, October 21, 2021)
• Tourism: Singapore-based hotel operator Banyan Tree will establish a winery and luxury resort in Mexico’s Guadalupe Valley in the northwestern state of Baja California, the company reported. The US$20 million complex, which will include a spa, is expected to begin opening in stages in 2022. (Reforma, October 18, 2021)
• Automotive: Canadian metal products company Samuel, Son & Co. reported plans to establish a new processing plant in the central state of Querétaro. The 140,000 sq. ft. plant will be equipped with a latest-generation slitter and other advanced processing capabilities to serve the regional automotive supply chain. (Somos Industria, October, 2021)
• Glass: Mexican glass manufacturer Vitro reported plans to construct a new bottle furnace at its plant in the central State of Mexico. The US$70 million furnace, equipped with latest-generation technology, will allow the company to boost output of glass containers for products such as cosmetics, perfumes, personal care products and pharmaceuticals. (Forbes, October 12, 2021)
• Petrochemicals: Brazilian-Mexican chemical producer Braskem-Idesa announced it will invest approximately US$400 million to build a terminal for the importation of ethane in the eastern Gulf state of Veracruz. Braskem also announced it had reached an agreement with state-run petroleum company Petróleos Mexicanos on volume and prices of raw materials for the production of polyethylene products for the domestic and international markets. (Energy21, September 28, 2021)
• Packaging: Swiss packaging maker SIG Combibloc plans to establish a new manufacturing plant in the central state of Querétaro, local media reported. The US$46 million facility is expected to produce aseptic food and beverage packaging for markets in the USMCA region and elsewhere in Latin America. (Reforma, October 4, 2021)
• Manufacturing: U.S. adhesive tape maker Shurtape reported plans to expand its production plant in the central state of Querétaro. Investment was not specified for the addition of two new production lines, which will allow the site to meet growing demand for packing tape driven by e-commerce. (Somos Industria, October, 2021)