Last Monday, September 5, Daikin, a multinational leader in the heating, ventilation and air conditioning (HVAC) industry, announced an investment of approximately 6 billion pesos (300 million dollars), with which It is estimated that more than 2,500 jobs will be created for the people of San Luis in a new plant that will start operations in 2024. Demonstrating the confidence of the Japanese firm, in Mexico and in the state of San Luis Potosí.

The investment announcement ceremony was attended by the Secretary of Economic Development of the Government of the State of San Luis Potosí, Juan Carlos Valladares Eichelmann, as well as the executives, Shigeki Hagiwara, Senior Associate Officer, Representative of Latin America, Daikin Industries, LTD and Andrés Benavides, General Director of Daikin Manufacturing Mexico. Daikin’s investment in San Luis Potosí is part of the company’s growth strategy, in response to the growing demand for products in Latin America and North America.

“Regional production, innovation, Japanese quality, and also the strengthening of ties with society in the countries where we have a presence, will make Daikin the leader in the HVAC industry in Latin America and North America,” said Shigeki Hagiwara and Andrés Benavides added that this new factory will produce residential and commercial products, both with innovative and sustainable technologies.

The Secretary of Economic Development of the State Government, Juan Carlos Valladares Eichelmann, emphasized “this new investment by Daikin sets an important precedent to achieve the objective set by Governor Ricardo Gallardo Cardona to position San Luis Potosí as the best state to invest in Mexico; at the same time, promote the expansion and growth of companies that are currently in San Luis Potosí territory”.

Source: Codigosanluis

Hershey’s announced that it will invest 90 million dollars (mdd) for the installation of high-tech production lines in its manufacturing plant located in Escobedo, Nuevo León. 

With this expansion, the company will generate 300 new jobs, in addition to the 2,500 it already offers. Thanks to this, they will increase their production by 25%, and the plant could become the second largest of the Hershey’s company. 

Martín Venegas Gómez, manufacturing director of the company, mentioned that they maintain their commitment to economic development and care for the environment of Nuevo León. 

“We will continue working to continue being an exemplary company in economic, social and environmental matters. We are aware of the role we have with our people, with our community, with our clients and with the planet,” he said.

Iván Rivas, Secretary of Economy, indicated that Nuevo León has the human capital to increase production and, in turn, generate the expansion of transnational companies in the entity.

JALISCO – The electronics company Sanmina-SCI will invest US$216 million in Jalisco this year, which will generate around 2,000 new formal jobs in the state.

This was confirmed by Governor Enrique Alfaro during the second day of the promotional tour that Jalisco’s businessmen and authorities are carrying out in the Silicon Valley of San Jose, California.

The president of Jalisco did not offer further details of the projects in which this capital will be injected.

Sanmina’s investment is added to that of Jaibil Circuit for US$400 million to create 6,000 new jobs, and that of Intel for US$8 million in the area of semiconductors; in other words, in research and development, which will generate 200 jobs.

The investment promotion tour includes visits to 11 Silicon Valley companies, with whom we are seeking to establish new alliances and follow up on agreements already signed.

Source: MEXICONOW

APODACA, NL – The French company Faurecia, part of Grupo Forvia, a leader in the production of automotive technology, announced an investment of US$147 million in the construction of its first shared plant in the country.

“The interiors plant will have an investment of US$75 million, including machines and the building for vehicle interior design,” said Stephane Letrudet, vice president of Faurecia Interiores Mexico.

The plant will have instrument panels, production lines for other interior modules, technologies and processes such as plastic injection, vibration welding, ultrasonic welding, and assembly, based on renewable energy technologies, as they seek LEED certification.

The automotive industry is undergoing a technological revolution and Faurecia, now part of the Forvia Group, is at the center of the transformation and is confident that the talent from Monterrey will help to maintain cutting-edge technology.

Faurecia’s Interiors division is creating solutions and new designs that ensure higher levels of comfort, with natural and sustainable materials.

Robert Grienenberg, vice president of Faurecia Asientos Mexico, noted that the automotive seating division has had a great evolution and has achieved solid growth worldwide.

“The design of automotive seating has changed radically in recent decades, environmental concerns are increasingly important and the focus has shifted to the welfare of the occupants, therefore a key factor is the weight reduction of materials,” Grienenberg stressed.

The construction of these plants, he said, allows us to host new projects, consolidating our presence in Mexico and bringing our operations closer to the southeastern United States.

SOURCE: MEXICONOW

Guillermo Romero Pacheco, Secretary for the Economic Reactivation of León, says that the companies will invest close to 400 million dollars in two years.

China is no longer the manufacturing center for 15 companies of German, Japanese and American origin, which will invest nearly 400 million dollars in León and El Bajío in Mexico over the next two years.

This relocation of the companies is due to the intention of complying with the new rules of the Treaty between Mexico, the United States and Canada (T-MEC), as well as no longer paying high prices for transportation and no longer depending on the maritime industry.

“There are around 14 to 15 projects in the investment portfolio (from German, Japanese and American companies) for the municipality of Guanajuato, but there is not one that is particularly from a Chinese company,” reveals Guillermo Romero Pacheco, secretary for the Economic Reactivation of León.

German and Japanese companies take advantage of this moment to comply with the new trade rules of the T-MEC, especially the integration content of 75%, says the government official of the municipality of León.

Mazda imported some parts and auto parts from Japan, China, Singapore and other Asian countries, but now its suppliers and other companies will land in Mexico so that “they have the regional birth certificate and comply with the integration factor,” he tells Forbes Mexico .

“Some suppliers from Asia are arriving to settle in León, but they are linked to the same automotive factories,” says the former director general of the Coordinator for the Promotion of Foreign Trade of the State of Guanajuato.

The projects in the portfolio represent an investment of between 350 million dollars and up to 400 million dollars, which will be closed and tied up in the next two years, says the economist who graduated from the Tecnológico de Monterrey.

According to the secretary, among the investment projects are those that bet on the automotive industry and auto parts, as well as services and wholesale sales.

“At this time there is not particularly any request or investment project with Chinese capital in León,” adds Guillermo Romero Pacheco.

Companies of Chinese origin have been operating for many years or have joined forces to produce soles, accessories, hardware and auto parts, he adds.

In the automotive sector, in the last five years, between 2 and 3 companies with Chinese capital have arrived to be suppliers to the automotive industry in León, the official points out.

The presence of China in San Luis Potosí

“I am aware that 4 Chinese companies have arrived in the Bajío in the last two years, especially in San Luis Potosí,” says David Novoa Toscano, president of the Association of Industrial Supplier Companies of Mexico (Apimex).

The companies of Chinese origin and capital are dedicated to the production of auto parts for assemblers such as BMW and General Motors with a strong presence in San Luis Potosí, says the businessman.

More and more companies are looking for Mexican products, although a large percentage of Mexico’s exports go to the United States, today companies want and are looking for more local suppliers and there is an issue known as nearshoring.

US entrepreneurs and companies want the product in two days, because it is no longer profitable for them to wait up to six months for containers imported from Asia to ports such as Long Beach in California, Novoa Toscano points out.

“Wait six months to have product in the United States, because it is a world of time in one of the countries with the highest consumption of goods and services worldwide”

SOURCE: Forbes

MEXICO – The Mexican aerospace sector is losing around US$3 billion due to the costs generated by the importation of aeroparts; in addition, it could compete with world leaders in this industry, such as China, Turkey and Japan, by generating an integrated chain of raw material suppliers.

Sixty percent of the cost structure of aeronautical manufacturing companies is allocated to the purchase of raw materials, since purchases are made on an individual basis.

“In Turkey it takes them approximately 36 hours to make a quotation because they have a developed supply chain that serves them to lower costs and reduce response time. Mexican companies must unite to compete not among themselves, but as a country; competitive nations have already understood this,” said Manuel Mancera, CEO of SpeQtrum Aerospace, a leading aerospace manufacturing company in Guanajuato.

The aeronautical sector is characterized by a highly complex production process, with a vertical structure dominated by original equipment manufacturers (OEMs), which develop the design of the final product and delegate the manufacture of the modules for the rest of the production process to suppliers. For example, Boeing and Airbus.

According to the Ministry of Economy, global outsourcing allows OEMs to save between 20% and 30% of their production costs. These supplier companies are the most critical component of the value chain and face stringent barriers to entry, including high costs related to technological requirements, training and certifications.

In Guanajuato, companies in the industry are segmented into the Bajío Aerospace Cluster that seek to support each other to be competitive as a group.

“Our intention is to create a synergy of local and regional capabilities. We have to promote the sector and it is very important to achieve a well-integrated supply chain that generates alliances. Then we will be able to take it to the country level because we have many capabilities, so as entrepreneurs we have to work together,” stated Cluster president Oscar Rodriguez Yanez.

Those involved in the sector consider the need to stop depending on raw materials from the United States and form an aerospace ecosystem that allows them to offer special processes and more complete quotation packages.

“We need to connect through the Mexican Federation of the Aerospace Industry (FEMIA) and the Clusters, to buy raw material or the machines required to expand, and to make business plans,” added Manuel Mancera of SpeQtrum Aerospace.

SOURCE: Mexico now

VERACRUZ – Constellation Brands is preparing its plant in Veracruz. The company reported that it will invest US$1.3 billion in the southeastern Mexican state in the next four years, resources that are part of the US$5.5 billion it will invest in all its operations in said period.

The plant of the company that distributes Grupo Modelo’s brands in the United States will be located in the municipality of Veracruz, in the Antigua Hacienda de Santa Fe, Neveria, and will have a water source independent from that of the city.

Constellation Brands detailed that the location for this plant was determined due to favorable conditions for the industry, such as transportation infrastructure, one of the most prominent seaports in the region and access to highly skilled labor.

During the construction stage of the brewery in Veracruz, more than 2,000 jobs will be generated, as well as 10,000 indirect jobs, which will boost the local value chain.

“The company has updated its plans to invest in the upcoming capacity expansion in Mexico that will provide the long-term flexibility needed to support the expected future growth of its portfolio of high-end Mexican beers,” the company said.

In the document, Constellation Brands detailed that the new plant will add between 25 and 30 million additional hectoliters of total capacity and also considers the expansion and continued optimization of the company’s other plants in Nava and Obregon.

Source: MEXICO NOW