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Recent and upcoming investment in Mexico

  • Logistics: Mexican upscale department store chain and mall operator Liverpool inaugurated a major new distribution center in the central State of Mexico.  The first stage of the planned US$1.2 billion Plataforma Logística Arco Norte (PLAN) is expected to double the company’s existing capacity for receiving, warehousing and shipping products throughout the country. (Reforma, October 27, 2022)
  • Food processing: U.S. food processor Del Monte Foods announced a major expansion of its plant in the northeastern state of Nuevo León.  The US$30 million upgrade is planned to boost processing capacity of fruit and juices for export to the United States, China, Japan and South Korea. (Reforma, October 24, 2022)
  • Automotive: German automotive components manufacturer Standard Profil inaugurated a new production plant in the central state of Guanajuato.  The US$9.8 million facility is expected to produce sealing systems for electric vehicles of automotive OEMs such as Ford, Tesla, Rivian, Audi and Volvo. (Cluster Industrial, October 20, 2022)
  • Manufacturing: Chinese HVAC manufacturer Sanhua inaugurated a new production plant in the northern state of Coahuila, the state government reported.  The US$35 million site is planned to produce components for refrigeration and air conditioning systems. (Milenio, October 19, 2022)
  • Refrigeration: Danish heating and cooling equipment maker Danfoss inaugurated a new manufacturing plant in the northeastern state of Nuevo León, the company reported.  Investment was not specified for the new facility, which is expected to produce components for heat exchangers used in industrial refrigeration. (Milenio, October 19, 2022)
  • Automotive: German auto maker Volkswagen is projecting investment of approximately US$763 million through 2025 to modernize its manufacturing plant in the southern state of Puebla.  Plans include a new all-electric painting unit powered by wind-generated electricity. (Reforma, October 28, 2022)
  • Commercial real estate: Mexican commercial real estate developer Grupo Murano inaugurated a new hotel and retail complex in central Mexico City.  The US$150 million site is part of an investment program that includes hotels planned for the coastal cities of Cancun and Ensenada under the AM Resorts brand. (Reforma, October 25, 2022)
  • Railroads: Mexican rail freight operator Ferromex, subsidiary of Grupo Mexico Transportes, plans investment of approximately US$470 million in 2023, the company reported.  Resources are expected to support acquisition of new railroad equipment, expansion of operations and technology upgrades. (Reforma, October 27, 2022)
  • Manufacturing: U.S.-based bedding products multinational Tempur Sealy reported plans to expand its mattress manufacturing plant in the central State of Mexico.  The US$3.5 million upgrade includes the addition of loading docks and expansion of production facilities. (Forbes, October 19, 2022)
  • Automotive: Portuguese automotive components multinational Sodecia announced it will expand operations at its manufacturing plant in the northern state of Coahuila.  A US$36 million upgrade is expected to add automation technology including hot stamping to increase the range of auto body parts produced at the site. (Mexico Industry, October 13, 2022)
  • Logistics: U.S. e-commerce giant Amazon inaugurated a new shipping center in the northeastern state of Nuevo León, the state government reported.  The 225,000 sq. ft. facility is part of the company’s current US$75 million investment program in the state. (Government of Nuevo León, October 13, 2022)
  • Chemicals: Swiss chemical ingredients maker Givaudan inaugurated an expansion of its Flavors and Wellness production plant in the central state of Morelos. The US$7.7 million upgrade includes new quality control laboratories and administrative facilities. (Mexico Industry, October 12, 2022)
  • Electronics: U.S. semiconductor manufacturer Vishay Intertechnology inaugurated a new production plant in the northern border city of Ciudad Juárez, the Chihuahua state government reported.  The US$23 million facility is expected to produce resistors for industrial and consumer products. (Solili, October 12, 2022)
  • Retail: U.S.-based DIY and hardware retailer The Home Depot inaugurated a new retail location in the northeastern industrial city of Monterrey via investment of approximately US$30 million, the company reported.  The Home Depot’s investment plans also include a US$50 million multi-channel distribution center in Nuevo León, a new logistics hub and additional stores. (América Retail, October 11, 2022)
  • Manufacturing: Chinese machinery manufacturer BUT Construction Machinery established a new production plant in the northeastern state of Nuevo León, the state government reported.  The US$20 million site is planned to produce excavator parts and hydraulic clamps. (Somos Industria, October 2022)
  • Casual dining: Canadian coffee and fast-food chain Tim Hortons announced planned investment of US$30 million to open 50 locations in the central state of Querétaro.  The company also reported plans to establish points of sale in Walmart and Sam’s Club stores in Mexico. (Mexico Industry, October 10, 2022)
  • Automotive: Korean automotive electronics maker HL Klemove reported plans to establish a new manufacturing plant in the northern state of Coahuila.  The US$65 million facility is expected to produce electric vehicle components such as cameras, radar and domain controllers (DCU) for OEMs such as Hyundai and Kia. (Somos Industria, October 2022)
  • Metal finishing: Turkish metal finishing technology manufacturer BOCE Industrial Systems inaugurated an industrial plant in the central state of Querétaro at an estimated cost of US$1.5 million.  The site is expected to produce automatic surface treatment and electro-plating lines for anti-corrosion, decorative or functional applications. (Radio Fórmula, October 2, 2022)

Baja California is still great

A few years ago, we posted in this space about a visit to Baja California Sur, one of Mexico’s most remote states.  We love Baja California and Baja California Sur and had the good fortune to visit the southern tip of the peninsula again recently for a couple weeks, and we are happy to report that Baja is still great.  After nearly two years of COVID-19 pandemic, our previous visit seems long ago and far away, and the travel industry has taken a beating in recent times.  But people need to work and get on with their lives, so we were happy to see that folks were doing just that and it appears that Baja California Sur is actually prospering against all odds. Here are a few thoughts on what we observed in August and September of 2021. Continue reading Baja California is still great

Recent and upcoming investment in Mexico

COVID-19

Mexico has suffered something of a setback in its emergence from the COVID-19 pandemic over the past month.  On the epidemiological traffic light system, Mexico City had reached green, or mild restrictions, as the beginning of the month only to return to the higher restrictions of the yellow level following the June 6 national elections.  The number of states at the orange or significant restriction level rose from one to five during the month, with reported increases in COVID cases particularly in tourist zones such as the Riviera Maya (Cancun), Yucatan and Baja California.  No PCR test or quarantine is required to enter Mexico for travelers arriving by air.

ECONOMY AND INDUSTRY

  • Same-store retail sales jumped 33.9% in May with respect to the same month last year, the National Retailers Association (ANTAD) reported. The size of the increase is due largely to the plunge in sales in May 2020 resulting from the initial COVID-19 lockdowns. (Reforma, June 11, 2021)
  • Mexico’s central bank Banco de México (Banxico) raised its projection of GDP growth to 6.0% for the current year, up from a previous estimate of 4.8%. The improved outlook is based on advances in COVID-19 vaccination, strong demand for exports and better than expected first quarter growth. (Citibanamex Reporte Económico Diario, June 3, 2021)
  • Remittances to Mexico from abroad through the first four months of the year are running 19.1% ahead of the same period last year, central bank Banco de México (Banxico) reported. Remittances are on track to post their strongest annual growth since 2005. (Milenio, June 1, 2021)

Continue reading Recent and upcoming investment in Mexico