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- Electric vehicles: U.S. auto maker Tesla announced plans to establish a production plant in the northeastern state of Nuevo León. The facility, the cost of which was not specified, is expected to produce the company’s Model 2 electric automobile, local media reported. (Reforma, March 2, 2023)
- Steel: Canadian steel products maker Nova Steel inaugurated a new processing plant in the northern state of Coahuila, the company reported. The US$37 million facility is planned to produce custom metallic structures for the automotive industry. (Mexico Industry, March 23, 2023)
- Automotive: U.S.-owned plastic components manufacturer NYX Plastics Mexico announced US$10 million in investment to expand its manufacturing plant in the northern state of Coahuila. The site seeks to double its output of plastic automotive components such as door panels, dashboards, frunks and decorative pieces. (Transportes y Turismo, March 24, 2023)
- Ports: Mexico’s Pacific coast industrial port of Lázaro Cárdenas will receive major upgrades via investment from the National Port Administration in tandem with private investment, local media reported. The US$360 million program is expected to include improvements to port infrastructure and acquisition of new equipment that will help meet growing demand due to nearshoring. (Mexicoxport, March 21, 2023)
- Automation: Chinese-owned industrial automation engineers Paslin will establish a production plant in the northern state of Coahuila, the state government reported. The US$10 million facility is expected to provide advanced automated welding systems for regional automotive OEMs and suppliers such as Tesla, Magna, Martinrea and Metalsa. (Cluster Industrial, March 30, 2023)
- Logistics: Grupo Scantibodies, subsidiary of U.S.-based biotechnology company Scantibodies Laboratory, initiated construction of a new logistics complex in the northwestern border state of Baja California. The US$120 million site is planned to include four industrial buildings providing logistics services to industries with specialized needs such as medical devices, aerospace and electronics. (Solili, March 14, 2023)
- Industrial parks: Mexican commercial real estate developer Real Estate Investments reported plans to expand its Gate Escobedo industrial park in the northeastern state of Nuevo León. The upgrade will include five new industrial buildings totaling 1.1 million sq. ft. (Reforma, March 21, 2023)
- Manufacturing: Mexican construction finishings manufacturer Lamosa is projecting investment of approximately US$260 million this year across operations in Mexico and elsewhere in Latin America. Plans include US$80 million in machinery upgrades to produce ceramic tile, adhesives and flooring materials. (El Economista, March 16, 2023)
- Automotive: U.S. automotive components manufacturer Borgwarner announced it will expand its manufacturing operations in the northern state of Coahuila. The US$47 million investment program will help the company’s three plants in the state boost output of products such as ignition coils, exhaust gas recirculation modules and thermostats. (Milenio, March 14, 2023)
- Industrial parks: Mexican commercial real estate developer Vesta reported plans to invest US$135 million to establish new industrial infrastructure in the State of Mexico in proximity of Mexico City. Plans include two industrial buildings in the city of Toluca and an industrial park in the municipality of Cuautitlán Izcalli. (Milenio, March 13, 2023)
- Retail: Walmart, Mexico’s leading grocery and general merchandise retailer, is projecting investment of approximately US$1.4 billion in Mexico and Central America operations during the current year. Resources are expected to support remodeling of existing stores, establishment of new sales locations and upgrades to operations technology and supply chain infrastructure. (El Financiero, March 7, 2023)
- Logistics: Mexican beverage bottler and savory snack maker Arca Continental inaugurated a new distribution center in the municipality of Tlaquepaque in the western state of Jalisco, the company reported. The US$2.5 million facility is intended to serve consumers directly and will collaborate with the Coca Cola company’s PetStar PET plastic recycling center, also in Tlaquepaque. (Notisistema, March 8, 2023)
- Automotive: Chinese-owned auto parts maker Xinquan Mexico Automotive Trim inaugurated an expansion of its manufacturing plant in the central state of Aguascalientes, the state government reported. The US$30 million upgrade will boost production at the site of door panels, back panels and center consoles for luxury vehicles. (El Universal, March 14, 2023)
- Solar power: Chinese-Mexican solar panel maker Solarever inaugurated a new production line at its manufacturing plant in the western Pacific coast state of Colima, the company reported. The US$35 million upgrade includes specialized automation technology and machinery for the production of photovoltaic solar panels. (Mexico Industry, March 13, 2023)
- Retail: Leading Mexican grocery and general merchandise retailer Soriana announced the completion of a US$27 million program to renovate four of the chain’s largest stores, located in Mexico City, Los Cabos and Monterrey. Upgrades focused on technology such as self-checkout stations and sustainability systems for increasing efficiency of water and electricity use. (Reforma, March 3, 2023)
- Automotive: U.S. vehicle parts manufacturer Phillips Industries inaugurated an expansion of its production plant in the northern state of Coahuila, the company reported. The US$35 million upgrade will boost production at the site of electrical harnesses for tractor-trailers and other types of trailers. (Mexico Industry, March 14, 2023)
- Leisure: Mexican resort operator Pueblo in alliance with the Tourism Ministry (Sectur) and other Mexican government agencies plans to open a major aquarium complex in the Pacific coast city of Mazatlán this Spring. The US$95 million site is expected to include a botanical garden and other visitor amenities. (SoyNómada, March 2, 2023)
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Recent and upcoming investment in Mexico
- Pharmaceutical: French pharmaceutical multinational Sanofi plans investment of approximately US$17.5 million in Mexico research and development during the current year, local media reported. Resources are expected to support clinical studies and therapy development related to diabetes and heart disease, among other applications. (Reforma, February 28, 2023)
- Retail: Mexican diversified corporate group Fomento Económico Mexicano (FEMSA) is projecting investment of approximately US$1.5 billion throughout Latin America during the current year, the company reported. Plans for Mexico include opening between 800 and 1,000 new locations of its Oxxo convenience store. (Reforma, February 24, 2023)
- Information Technology: Mexican information technology infrastructure provider KIO Networks announced plans to construct a new data center in the central state of Querétaro. The US$400 million facility will serve as a 270,000 sq. ft. extension to an existing center at the site. (Mexico Industry, February 24, 2023)
- Automotive: German auto parts maker ZF Group plans to invest US$255 million to upgrade its infrastructure in the central state of Querétaro, the state government reported. Projects include a new distribution center and expansion of an existing manufacturing plant to produce power steering components and integrated brake controls. (Mexico Industry, February 23, 2023)
- Commercial real estate: Mexican real estate developer Wolstrat reported plans to build a large-scale mixed-use complex in the central state of Querétaro via investment of US$25 million in the initial phase. The site is expected to include four residential apartment towers and and an upscale shopping center. (Reforma, February 20, 2023)
- Retail: Mexican grocery and general merchandise retailer Grupo Chedraui plans to open 60 new stores in Mexico and four in the United States during the current year, the Mexican Real Estate Developers Association (ADI) reported. Investment was not specified for the program, of which 50 Mexican locations are expected to be under the chain’s small-footprint Supercito format, and three of the U.S. stores will be under the Smart & Final brand. (Retailers.mx, February 16, 2023)
- Leisure: U.S.-based soccer training center operator TOCA Football plans to establish entertainment centers in Mexico in partnership with Mexican theme park operator Ventura Entertainment, local media reported. The US$100 million venture is expected to include seven soccer-themed entertainment centers by 2026. (Reforma, February 15, 2023)
- Industrial parks: Mexican commercial real estate developer Fondo Inmobiliario Meor has completed construction of a new industrial park in the northeastern state of Nuevo León, local media reported. The US$15 million site plans to host new arrivals from the automotive, logistics and manufacturing industries attracted by the current nearshoring trend. (Reforma, February 15, 2023)
- Food & beverage: Mexican beverage bottler and savory snack maker Arca Continental reported investment plans totaling at least US$623 million for the current year. The company expects to invest heavily in digital technology for operational applications. (Reforma, February 14, 2023)
- Shopping malls: U.S.-Mexican development group MRP will build a new shopping center in the central state of Aguascalientes, the Mexican Association of Real Estate Developers (ADI) reported. The US$15 million complex is planned to be anchored by a leading department store and include movie theaters. (Retailers.mx, February 9, 2023)
- Industrial parks: Mexican commercial real estate developer American Industries plans investment of approximately US$150 million to expand its industrial space in the northern states of Chihuahua and Nuevo León this year, local media reported. The company is seeking to take advantage of the nearshoring trend as multinationals move operations to Mexico to serve the U.S. and Latin American markets. (El Heraldo de Chihuahua, February 6, 2023)
- Recreation: Mexican real estate developer Thor Urbana has begun construction on a theme park in Mexico City based on the country’s history and culture, the Mexican Association of Real Estate Developers (ADI) reported. The US$182 million complex is expected to include museums, a venue for cultural events, a children’s games area, a ferris wheel and other mechanical rides. (Retailers.mx, February 9, 2023)
- Solar power: Chinese-Mexican photovoltaic panel maker Solarever inaugurated its tenth Mexico distribution center in the northwestern border city of Tijuana, the company reported. The site is expected to provide Tier 1 photovoltaic (PV) technology to industrial clients in the Tijuana-Mexicali-Ensenada region. (Energía a Debate, February 9, 2023)
- Personal care: British consumer goods multinational Unilever announced plans to construct a new manufacturing plant in the northeastern state of Nuevo León. The US$400 million factory is expected to produce cosmetics and skin care products among other personal care items. (Reforma, February 8, 2023)
- Food processing: Mexican multinational food processing giant Grupo Bimbo announced a US$50 million expansion planned for its manufacturing plant in Mexico City. The upgrade will include a new production line to increase output of the company’s signature baked goods. (Reforma, February 6, 2023)
- Logistics: Mexican laboratory equipment and materials distributor El Crisol inaugurated a new distribution center in the central state of Querétaro, the company reported. The US$16 million facility is equipped to handle refrigerated, frozen and ultra-frozen materials. (Noticias de Querétaro, January 30, 2023)
- Solar power: Mexico’s national electricity utility the Federal Electricity Commission (CFE) plans to inaugurate the first phase of a large-scale solar electricity generation site in the northwestern state of Sonora in April 2023, federal authorities reported. The full project is projected to cost approximately US$1.6 billion and achieve 1,000 MW of generation capacity. (Directorio Industria Energética Mexicana, February 3, 2023)
Recent and upcoming investment in Mexico
COVID-19
The accelerated contagion of COVID-19 continued to worsen during August, with seven states now classified as red (highest alert) on the national epidemiological traffic light system and 17 states at orange, the second highest level of alert. The country is currently reporting approximately 6,000 new cases per day nationwide, however this is down from over 20,000 per day earlier in the month. Health Ministry authorities have reported that at least 17 states are beginning to register declines in the number of new cases, raising hopes that the third wave is beginning to ease.
ECONOMY AND INDUSTRY
- Through the first six months of 2021, remittances to Mexico from abroad became the country’s single largest source of foreign currency, according to data from central bank Banco de México (Banxico). The US$23.6 billion in remittances during the period exceeded the value of other key income categories such as Foreign Direct Investment (FDI), petroleum exports and tourism. (La Jornada, August 18, 2021)
- The Mexican Social Security Institute (IMSS) reported the number of formal jobs registered nationwide in the system reached a historic high in July. The number of part-time jobs declined, indicating that the recent reform to reduce the outsourcing of employment is driving companies to bring formerly independent workers on staff. (Reforma, August 13, 2021)
- Income from international tourism in Mexico in June exceeded that of June 2019 by 4%, demonstrating significant recovery of Mexico’s tourism industry despite the ongoing pandemic, according to data from the National Statistics Institute (INEGI). The number of international tourists arriving in the country jumped 211% from June 2020, due to business shutdowns last year. (Citibanamex Reporte Económico Diario, August 11, 2021)