Regional News – Issue 80

29 April, 2016

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Central Zone - Issue 80

Renault to produce its new Alaskan pick-up in Mexico

The French assembler Renault announced its plans to start the production of its new pick-up Alaskan in Mexico by the second half of 2016. Jose Luis Montiel, General Director of Renault, explained that this new vehicle can be assembled without investing in the construction of a new plant. This is because of its strategical alliance with Nissan, allowing for the use their facilities in the Ciudad Industrial del Valle de Cuernavaca (CIVAC), located in Morelos.

Sekisui Plastics to establish a new plant in Mexico in 2016

The Japanese Company Sekisui Plastics announced that by 2016 a new synthetic resin production plant will be established in Mexico. The factory will be built in the State of Guanajuato and will start operations by August 2016. Most of its production will be resin foam. This is a material with the property to absorb impacts, and for this reason it is used in auto parts such as fenders and in packing boxes for electronic devices.

Gentherm to build new plant in Guanajuato

Gentherm, an automotive parts manufacturer, announced the construction of a new production center to be located in Celaya, Guanajuato. Currently the Company has two other production centers in Ciudad Acuña, Coahuila. This plant will have a 1.3-hectare surface and will generate 1,500 direct jobs. Heaters for car seats and other industrial products will be produced in this facility. It will be the third Gentherm plant in Mexico and it is expected to start-up operations by the third quarter of 2016.

Hajime Industries arrives in Jalisco

The Japanese Company Hajime Industries will be established in Jalisco with an initial investment of US$2 million, announced Tamizo Taira, President of the firm. This transnational company is specialized in plastic injection and manufacture of precision resin components for the automotive industry. The creation of 33 high quality jobs is expected and they will only be filled by Mexican workers. Hajime Industries will be established in the Colinas del Lago Industrial Park, which is located in the Municipality of Lagos de Moreno. It is estimated that operations will start sometime before 2016.

Backaldrin Americas inaugurates plant in Mexico

The Mexican Company Cremeria Americana and the Austrian Company Backaldrin International formalized their alliance by inaugurating the first Backaldrin Americas´ flour plant. It is located in the Toluca 2000 Industrial Park, in Toluca, State of Mexico. The operation requires an investment of US$2.4 million. The objective of this trade pact between these two firms is to produce and distribute self-rising flours for the Mexican baking industry, as well as the entire continent. The industrial center has a production capacity of 3,000 tons of flour yearly and is seeking to position 300 high quality Backaldrin products in Mexico and the Americas.

Henkel invests in Guanajuato

The German Company Henkel invested US$727,200 to expand the facilities of its adhesives plant located in Salamanca, Guanajuato. This plant will produce the Teroson PV 8500D sealant for vehicle manufacturing. It is expected that with the production of this sealant, the Salamanca plant´s production volume will reach a growth of two percent. This was pointed out by Rodolfo Milan, Operative Director for the Adhesives Technologies business of Latin America. The market that Henkel wants to reach is located in Guanajuato, where six automaker plants are established. These include: Mazda; General Motors; Honda; Volkswagen; Ford and Toyota.

MAN Trucks & Bus to invest in Mexico

The Volkswagen Group´s subsidiary, MAN Trucks & Bus Mexico, forecasts an investment of US$50 million in Mexico. US$20 million will be allocated for new processes and launches. The remaining US$30 million will be used to meet the new emission regulations taking effect in the country within the next two years. Leonardo Soloaga, MAN´s General Director, said that they plan to double the production of the Queretaro plant by reaching 2,000 trucks produced per year. It is also expected to adopt the Euro V and EPA 2013 regulations. These are the cutting-edge technologies aimed at reducing pollutant emissions.

Hino to produce new models at the Silao plant

Hino Motors, Toyota Group´s Truck Division, said that the assembly of three new models will be incorporated at its Silao plant by the year 2016. This includes a bus version and two medium-sized trucks. The bus model is the rear engine chassis 1425. Meanwhile, the model 1727 units of the 500 series will be the first off the production line. They will come with a 6x2 and 6x4 configuration and they will be assembled at the Guanajuato facilities. With these three models, production will be increased next year from 1,000 to 1,100 units. Hino Motors expects to sell 5,000 units by 2020, a number representing a 10% market share.

North East Zone - Issue 80

Cummins to invest in Mexico

Cummins, an engine manufacturer, plans to invest US$18 million for the construction of a logistic center to be located in the San Luis Potosi industrial zone. It is expected that the work will be concluded by June 2016. This center, occupying a 900,000 square-foot area, will help enhance the organization of materials and improve the coordination between the entry and exit of operational resources. It will also improve the response time for parts delivery to its customers while improving the availability of these components. In addition, Cummins plans to invest US$9.5 million for a new technical center and US$13.5 million for a new engine assembly line.

Goodyear lays the foundation stone for its new plant in San Luis Potosi

The Goodyear Tire & Rubber Company laid the foundation stone for its production plant located in San Luis Potosi. Around US$550 million will be invested there and an estimated six million wheels will be produced per year. This plant will have the most advanced technology in addition to facilities that are more ecological incorporating the use natural gas. It will operate with LED lighting and will not generate waste through landfill sites. It is expected that the work will be finished by the end of 2016 and its first production will be distributed by the summer of 2017. The new plant will create 1,000 direct jobs.

Navistar´s suppliers seek to establish their plants in Nuevo Leon

The Ministry of Economic Development (SEDECO) in Nuevo Leon met with Navistar International Corporation´s executives to discuss the topic of re-location of its U.S. plants in Nuevo Leon. The objective will be job generation and reduction of costs for the Company. At least 20 Navistar´s suppliers are interested in re-locating their plants. This effort will generate higher foreign investment totals and create thousands of jobs. As part of the overall strategy, Navistar has new expansion projects and is seeking to reduce costs by relocating its suppliers. The Company produces over 60,000 cars and trucks in Nuevo Leon yearly. Eighty five percent (85%) of them are exported to the U.S. and Canada.

Next Energy Company to invest in Nuevo Leon

Next Energy Company will invest US$100 million by 2016, in order to expand a wind farm located in the Municipality of Santa Catarina, Nuevo Leon. The effort includes integration of their solar panel technology so they can increase their offer of renewable energy. In 2013, Next Energy, along with Comexhidro Viento and Conduit Capital invested US$50 million for the construction of the first wind farm in Nuevo Leon. Currently, the Santa Catarina Wind Farm, located on the Monterrey-Saltillo highway, has eight wind turbines. Each tower is 443 feet high and has an installed capacity of 22 megawatts. With this output enough electricity could be supplied for the next 20 years while generating important savings for municipalities in the region.

Tokai Rika to invest in Monterrey

The global auto parts company Tokai Rika will allocate a US$34 million investment for the establishment of its first plant in Mexico. In a first phase, the project includes the acquisition of 15 hectares in the Interpuerto Monterrey and an industrial building of 25,000 square meters. Tokai Rika has plants in Brazil, China, Indonesia, Thailand, among others; but its headquarters are located in Nagoya, Japan since the beginning. Besides, since 2000 the firm has gained four ISO certifications, including the ISO 26262 in 2013.

New investments arrive to Nuevo Leon

Fernando Turner, Minister of Economic Development in Nuevo Leon, pointed out that two important investment projects arrived to the Entity. One of the projects is the expansion of the LEGO firm, with an investment of US$800 million; the other one is the Hofusan´s investment project, with an investment of between US$300-US$500 million for a new industrial, commercial and housing park. Currently, there is a 130-project portfolio, which would represent an estimated investment per US$3.28 billion and the creation of over 15,500 jobs, informed Minister Turner.

AMI PPM starts operations in San Luis Potosi

AMI PPM of Mexico has started operations at the Millenium Industrial Park in San Luis Potosi. The Company will have 100 direct jobs and the total is expected to reach 300 positions and generate US$500 million within the next five years. This Chinese firm is a Tier 1 supplier for GM in North America; SGM in China; Mercedes Benz in Germany; besides to Volkswagen, Audi, Cummins, Bosch, Chrysler, Fiat, Polaris, and other. AMI PPM was founded in 2005 and has companies in China, Mexico and Germany. Last year the firm started planning the research, development, production and sale of powertrain parts and components for automakers of local independent brands.

Kia Inaugurates new plant in Nuevo Leon

Kia Motors Mexico has inaugurated its new plant. It is located in the Municipality of Pesqueria, Nuevo Leon. The Company announced that the first Forte models will be produced from November 2015 to May 2016, but that normal production will not be ready until late June of 2016. It is expected to reach a minimum of 100,000 units produced during its first year of operation, but the total output will ultimately reach 300,000 units. Sixty percent of the production in Pesqueria will be exported to the U.S., 20% will stay in Mexico and the remaining 20% will go to Central and South America. To produce the 300,000 units Kia will be hiring up to 4,000 Mexican employees.

South Zone - Issue 80

VestaPark to invest in Puebla

The VestaPark Real Estate firm started the construction of the complex named VestaPark Puebla I. It will be located in Huejotzingo, Puebla, with an investment per US$50 million over the next three years. This park will have six buildings for rent on a 23-hectare area surface. The space is needed in order to serve the automotive sector suppliers that may need to be located near the Audi plant in the municipality of San Jose de Chiapa. It is expected that the works will be started by 2016 and the buildings will be ready to be rented within the next three years. The first buildings will be available by late June, 2016. About 1,000 jobs, mainly for citizens living in the surrounding area, will be created during the construction stage.

Audi Mexico inaugurates stamping building

Audi Mexico has inaugurated the stamping facility in its new plant located in San Jose de Chiapa, Puebla. This is where the Audi Q5 production will start this year. The press line of Audi Mexico processes steel and aluminum and is adapted to the corresponding shaping processes. This press line will produce up to 60 aluminum sheet and steel coils per minute. Audi Mexico will inaugurate its number 13 plant around the world by the second half of 2016. With the inauguration of the Audi Q5 production, the plant will reach a work force of 3,800 positions.

Spanish manufacturer to open new plant in Tlaxcala

The Spanish Company Antolin, an auto parts manufacturer, will establish a new plant in the Xicohtencatl II Industrial Park, in the municipality of Huamantla, Tlaxcala, by early 2016. The Company will invest around US$53.75 million there and will produce auto parts to supply Audi and Volkswagen. The plant will generate 300 direct jobs in the beginning stage. The Company has started the hiring process and some staff are in the training process at their plants in Europe. Meanwhile, in Mexico, Grupo Antolin has a presence in Silao, Guanajuato; Puebla; Hermosillo, Sonora; Saltillo; and also in the locality of Derramadero, Coahuila.

Simec to invest in a new plant in Tlaxcala

The Grupo Simec steel company announced the establishment of a new plant in Mexico with an investment of US$600 million. The goal is a production capacity of 600,000 tons of special steel. The new facility will be located in the State of Tlaxcala and it is projected that operations will be initiated by late 2017. The plant will produce large-diameter round bars and wire rod, among other products. The operation will replace the production of the largest steel companies in Mexico, AHMSA and ArcelorMittal, which have been affected by steel imports, mainly from Asia.

North Central Zone - Issue 80

TitanX invests in Coahuila

The Swedish Firm TitanX inaugurated its new plant at the Amistad Aeropuerto Industrial Park, located in Ramos Arizpe, Coahuila, with a US$10 million investment. This plant will produce engine cooling systems and will be a supplier for Daimler Trucks (Freightliner). The new plant currently has 40 job positions, but it has more than 800 job positions in six other plants around the world. In addition to investing, the Company encourages its suppliers to establish operations in Mexico. For example, its main supplier is the Buffalo Company which was located in New York, but has already set up shop in Coahuila.

Coahuila receives investment for a wind farm

EDP Renewables and Industrias Peñoles announced the construction of Eolica of Coahuila, with an investment of US$300 million. This is a wind power project that will generate about 200 megawatts of electricity. The objective is to generate enough clean energy to illuminate 300,000 homes. It is expected to start operating by the end of 2016. Joao Manso Neto, EDP´s General Director, has assured everyone that Eolica of Coahuila will be one of the leaders on the global energy production map with a world-class project.