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- Steel: Mexican steel products maker Deacero reported plans to invest approximately US$600 million to expand operations through 2024. Resources will support acquisition of new machinery and equipment, improved sustainability practices and increased production capacity to serve increasing demand from “nearshoring” manufacturing operations in Mexico. (Reforma, September 26, 2022)
- Electrical: U.S. electrical products developer Panduit inaugurated a new manufacturing plant in the northeastern state of Nuevo León. The amount of investment was not specified for the site, which is expected to produce make-to-order (MTO) electrical and network infrastructure components for regional industries. (Government of Nuevo León, September 28, 2022)
- Metal machining: Japanese-owned industrial components maker Sumitomo Drive Technologies inaugurated a new manufacturing plant in the northeastern state of Nuevo León, the company reported. The US$12 million facility includes machining centers to produce metal components for power transmission equipment. (Mexico Industry, September 9, 2022)
- Batteries: Chinese-Mexican photovoltaic panel maker Solarever announced projected investment of US$1 billion to establish a new manufacturing plant in the western state of Jalisco. The new facility is planned to produce batteries for electric vehicles. (El Economista, September 12, 2022)
- Food processing: U.S. confectionery and baked goods producer Hershey reported plans to expand manufacturing operations at its plant in the northeastern state of Nuevo León. The US$90 million upgrade is expected to include two new advanced-technology production lines to boost output of the over 300 Hershey’s products made at the site. (Inmobiliare, September 9, 2022)
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Recent and upcoming investment in Mexico
- Automotive: U.S.-owned vehicle maker Link EV Electric Vehicles announced plans to establish a manufacturing plant in the southeastern state of Puebla, in association with Chinese and Spanish partners. The US$265 million facility is expected to produce electric vans for package delivery and urban transport applications. (El Economista, January 25, 2022)
- Mining: Canadian mining company Americas Gold and Silver reported plans to invest US$30 million at its San Rafael mine in the northwestern state of Sinaloa. Resources will be aimed at boosting production of silver, zinc and lead at the mine following an extended period of inactivity. (Reforma, January 25, 2022)
- Packaging: U.S. consumer packaging multinational Nexgen inaugurated a new manufacturing plant in the central state of Querétaro, the company reported. The site, for which the amount of investment was not specified, will provide nearshoring production services for apparel and footwear manufacturers and retailers with operations in North America. (Nexgen Packaging, January 24, 2022)
- Animal feed: UK-based agri-tech company Devenish inaugurated a new administrative and production complex in the northwestern state of Sonora, the company announced. The site, investment for which was not specified, will become the Devenish Mexico headquarters and include a two-line production system to produce premixes for pork, cattle and poultry feeds. (3tres3.com, January 19, 2022)
- Industrial parks: The government of the central state of Guanajuato announced the inauguration of a new 1.1 million sq. ft. industrial park in the state. the US$40 million Orient Business Park is planned to include at least 97 industrial structures available to regional productive enterprises. (Centro Urbano, January 19, 2022)
Recent and upcoming investment in Mexico
COVID-19
During July the third wave of COVID-19 infections has accelerated in Mexico and the level of restrictions on mobility and business activities has increased. One state returned to red, the highest level on the epidemiological traffic light system, and the number of states at the second highest level, orange, jumped from one to five. The alert level in Mexico City continues to rise, going from green to yellow to orange since early June. Nonetheless, the Health Ministry (Secretaría de Salud) has expressed reluctance to place strict restrictions on business and mobility in order to allow the economy to function.
ECONOMY AND INDUSTRY
- Mexico’s exports of auto parts grew by an annualized rate of 22.5% through the first four months of this year, according to Economy Ministry data. Industry analysts cited increased regional content requirements under the new USMCA trade agreement as boosting exports to the United States and Canada. (El Financiero, July 19, 2021)
- Same-store retail sales in June rose 14.4% with respect to the same month last year, the National Retailers Association (ANTAD) reported. Monthly year-on-year retail sales data continue to reflect the impact of store closings in 2020 due to the COVID-19 pandemic. (Citibanamex Reporte Económico Diario, July 13, 2021)
- In May, a record number of visitors from the United States arrived by air in Mexico, according to the Anahuac Tourism Research Center (Cicotur). The 970,000 air passengers from the U.S. during the month exceeds the number for the same month in 2019, before the start of the COVID-19 pandemic. (Reforma, July 6, 2021)