ASIAWAY INAUGURATION

With the arrival of Asiaway, Ricardo Gallardo Cardona reaffirmed the support for the generation of business and the ease of national and international investment.

The Governor of the State Ricardo Gallardo Cardona was present at the inauguration of the Chinese company Asiaway, this Monday; company announced it will bring an investment of 41 million, 400 thousand dollars, the equivalent to the approximate amount of 750 million pesos.

Ricardo Gallardo Cardona considered that with the arrival of the new company to San Luis Potosi, the support to business generation and the ease of national and international investment in the state was reaffirmed.

The State President shared that San Luis Potosi will exceed 3,500 million dollars in Foreign Direct Investment, which will allow the growth and economic development in the state, so he emphasized that this new company located in the WTC Industrial Park, dedicated to the production of automotive components, will increase its production to become an important leading supplier of the industry.

Ricardo Gallardo welcomed the executives and highlighted that the investment is the result of the confidence generated to foreign companies: “today there is support for education, technology and professionalization to respond to the challenges of the companies that are coming to the State”, he said.

During the inauguration event of the new plant, they announced that the plant will generate 300 new jobs and announced the investment of a second phase, which includes a total investment of 414 million dollars (more than 7 billion pesos), with 1,700 employees, for the creation of 2,000 new and better paid jobs.

Source: El Heraldo

Mitsui High Tech will invest 130 million pesos for the construction of its plant in Apaseo El Grande, Guanajuato.

The Japanese company stands out for being the main provider of frames for integrated circuits, precision tools, motor cores and surface grinders ; and will be generating 180 new jobs in the entity.

During his work tour of Japan, Diego Sinhue Rodríguez Vallejo, governor of the State of Guanajuato , affirmed the arrival of this Asian company in the region to expand its market and production in America.

At the work meeting, executives from the Japanese company Mitsui High Tec were present ; Kazuo Narita, Executive Chairman and Takafumi Kashu, General Manager; the governor, Diego Sinhue Rodríguez Vallejo; as well as the head of the Secretariat for Sustainable Economic Development , Ramón Alfaro; the Consul of Japan in León , Katsumi Itagaki; the General Coordinator of Social Communication, Alan Sahir Márquez Becerra, and state officials.

Source: Mexico Industry

With an amount of US$1.5 billion, nearshoring is opening business opportunities in the supply for the aerospace industry to North America, part of said amount could be directed to Nuevo Leon or in general to Mexico, said Erick Palacios, general director of the Aero Cluster of Nuevo Leon.

“Companies estimate that between US$300 million and US$400 million are being transferred to Mexico annually in supply chain purchases, and that this amount could grow. The areas in greatest demand are: machining, punching, harnesses, composite materials with fiberglass and carbon fiber, among others,” added the executive.

International companies are looking for suppliers throughout Mexico, so at this time it is premature to estimate how much Nuevo León could attract.

Nuevo Leon’s aerospace industry ranks fourth nationally in aerospace sales.

Nearshoring is pushing this movement and trying to strengthen supply chains and also how to reduce the risks of a possible China-Taiwan conflict, this is where the interest of foreign companies in Mexico comes from.

“With this nearshoring there is a lot of movement and viability for new players to enter the aerospace market in Mexico, this can occur in two ways: those companies that are already installed that can have access to aerospace supply with a certification and foreign companies that are looking to consolidate their operations in Mexico,” explained the executive.

In addition to the expansions of companies already operating and those that would be entering for the first time.

“There are no numbers of how many there could be, but there will be new players, at this moment they are evaluating in which state of the country they would be located,” he added.

Source: Mexico Now

Such improvement was achieved with a 24.1% growth in shipments of that basket of products in the last three years, to $21.1 billion, which allowed it to overtake Austria.

Mexico climbed from 15th position in 2019, the year before the Covid-19 pandemic, to 14th in 2022 among the world’s largest exporters of medical products, reported the World Trade Organization (WTO).

Such improvement was achieved with a 24.1% growth in exports of that basket of products over the past three years, to $21.1 billion, allowing it to overtake Austria.

In 2022, the top 10 exporters of medical products accounted for nearly three-quarters of the world total.

Germany was the top exporter in this ranking, with external sales of $202.6 billion, comprising 12.9% of global exports.

The United States, with exports of $189.6 billion (12% of world exports of medical products), and China, with exports of $137.3 billion (8.7% of world exports), ranked second and third.

While Germany was the leading exporter of medical products, the United States was the leading exporter of medical equipment, orthopedic equipment and other medical supplies. For its part, China was the top exporter of personal protective equipment.

Between 2019 and 2022, China moved from fifth to third place, mainly due to a significant increase in exports of personal protective equipment.

During the same period, Belgium moved from seventh to fourth place, becoming the second largest exporter of pharmaceuticals.

By year-on-year growth in exports of medical products from 2019 to 2022, China was the most dynamic country (74.5 percent), followed by Belgium (70.4 percent) and Ireland (42.2 percent).

Conversely, importers of medical products are not as concentrated as exporters, with the top 10 importers accounting for about two-thirds of the world’s medical products, rather than three-quarters. In 2022, the United States was the top importer, with $306 billion worth of medical products. This constitutes a significant share of the market, accounting for 19.2% of the global total.

The pandemic had an overall negative impact on global trade in goods, with one notable exception: trade in medical products.

The analysis released by the WTO and conducted by Edvinas Drevinskas, Eric Ng Shing and Thomas Verbeet also highlights that medical products, which accounted for only 6.4% of total world trade in 2018, increased to a share of 8.3% in 2020.

This increase can be attributed to a decline in overall international trade, coupled with an increase in demand for medical products at the peak of the pandemic.

Between 2019 and 2020, trade in medical products increased 13%, mostly driven by higher demand for personal protective equipment.

This positive trend continued in 2021, with further growth of 14.1% for medical products, largely due to a significant increase in pharmaceutical trade.

More recently, the share of medical products in total merchandise trade has returned to pre-pandemic levels, declining to 6.9% in 2022.

Source: El Economista

NUEVO LEON- Juan Carlos Valladares Eichelmman, head of the Secretariat of Economic Development (SEDECO), said that with the arrival of new investments in the automotive sector, between the state of Nuevo Leon and San Luis Potosi, 75% of the country’s nearshoring will be concentrated in the first quarter of 2023.

On the subject of new investments, the official said that at the end of this month a new investment will be announced, which he considered to be important, also in the automotive sector in the state, and that a new working tour in Japan is also being analyzed.

The official pointed out that this news is the result of the work that has been carried out previously, in addition to the work that was consolidated in the tour of Germany and Spain.

Finally, he reiterated that with the arrival of Tesla in Nuevo Leon and the investment of BMW Group for the manufacture of electric cars in San Luis Potosi, 75% of the country’s nearshoring was concentrated in the first quarter of this year.

Source: Mexico Now

Mexico could be the Latin American nation to benefit most from nearshoring.

René Alberto Mendoza, national president of the Mexican industry supply chain CAPIM, announced that in the coming months a rebound in Foreign Direct Investment (FDI) is expected as a result of nearshoring and the T-MEC.
With the cut as of February of this year, not including the announcement of Tesla’s investment in Nuevo Leon, he indicated that the approximate amount of FDI in the country reached 2.5 billion dollars.

Mainly with the announcements of BMW in San Luis Potosi, which is equivalent to 872 million dollars; Noah with 100 million dollars and Brembo with 36 million dollars, both in Nuevo Leon; while Nestle announced 41 million dollars in the State of Mexico and Bic in Coahuila with 70 million dollars.

“On February 23, the Bank of Mexico announced that 23% of manufacturing companies with more than 100 employees increased their production,” he stated.

Mendoza added that according to the Inter-American Bank (IDB), Mexico could be the Latin American nation that benefits the most from nearshoring, with a potential to obtain up to 35.3 billion dollars.

“It basically means 30% of Mexico’s auto parts production, so you can see what a great business opportunity this is,” he said.

He pointed out that new companies coming to Mexico require infrastructure, supply chain, labor, services and logistics.

And he estimated that in the next few years exports will increase by more than 78 billion dollars, almost 80% of current auto parts production.

He pointed out that in 2022, Mexico, the United States and Canada imported 93,702 billion dollars from what is called “third countries” in terms of the Agreement.

“That is what the Treaty previously allowed them, which was 40%, now with the increase to 75% of regional content, imports will have to be reduced by 25% for purchases made in Mexico, the United States and Canada,” explained the expert in supply. Mendoza pointed out that the new business opportunities in North America for the automotive sector will amount to more than 32,970 million dollars per year.

“That is 35% of what Mexico is currently exporting in auto parts,” said the CAPIM executive, who stressed that it is important to take advantage of new business opportunities through the supply chain.

Source: Somos Industria

The Mexican Aerospace Industry Federation indicated that the country is attractive to aircraft manufacturers because of its proven experience.
Luis Lizcano, executive president of the Mexican Federation of the Aerospace Industry (Femia), stated that 15 aircraft, airplane and helicopter parts manufacturers from the United States and Europe are looking to expand their operations in Mexico or come to the country to invest in production lines due to the nearshoring phenomenon.
“There are companies that are considering and are doing their due diligence and site selection study to stay in Mexico,” said the executive at the end of the presentation of the International Technology and Manufacturing Fair (FITMA), to be held from June 20 to 22, 2023 at the Citibanamex Center in Mexico City.

“Right now in the pipeline we should have more or less 12 or 15 projects of different sizes and colors, more or less, to stay in Mexico, coming from North America or Europe,” he said.

Source: Forbes Mexico