24Nov

Mexstamp invests US$1.6 million in Aguascalientes

noviembre 24, 2021 Luisa

AGUASCALIENTES – With an investment of US$1.6 million, Mexstamp inaugurated its new facilities in the Chichimeco Industrial Park in Aguascalientes.

“With this new plant, the auto parts, machining and stamped Parts Company generates 55 new sources of employment, informed its director, partner and founder, Victor Hugo Olvera Jimenez.

The company was born in 2018 thinking about meeting the needs of the automotive sector in the region, but after three years of sustained growth, the company has managed to expand its services, offering quality stamping of 56 numbers of auto parts to customers in Central and South America, as well as in the United States.

The executive mentioned that the company will continue to invest in the state through the construction of a second plant in 2022 in order to serve its new customers. The project contemplates an investment of US$707.109 and the generation of 100 additional jobs.

At the inauguration event, the governor of Aguascalientes, Martin Orozco Sandoval, thanked the company’s top management for maintaining their confidence in the state and building this factory.

The governor emphasized that in the state, local companies do have opportunities for development by stressing that they have a global vision to increase their productivity and competitiveness in Mexico and abroad.

SOURCE: MEXICO NOW

16Nov

Key aspects to consider before investing in Mexico

noviembre 16, 2021 Luisa

The Survey on the Economic Impact Generated by COVID-19 on Enterprises (ECOVID-IE) in its third edition 2021 estimates that, out of 1,873,564 businesses in Mexico, 85.5% indicated to be impacted economically due to the pandemic. (INEGI, 2020), in addition to the impact of a decrease in foreign direct investment (FDI) as companies considering investing in Mexico, decided to postpone it.

As before mentioned, the pandemic impacted greatly in Foreign Direct Investment (FDI), in which according to UNCTAD World Investment Report 2021, in 2020 flows of foreign direct investment worldwide fell by one third. Specifically Mexico, was more resilient compared with the rest of Latin America with a drop of 15% (UNCTAD, 2021). In Mexico FDI in 2020 concentrated in manufacturing including automotive industry, computer and electronic parts, machinery and equipment and medical equipment and supplies.

Nevertheless, FDI has started to recover worldwide, and companies are setting eyes in Mexico again as a nearshoring strategy, to take advantage of shorter supply chain, lower labor costs, Mexico’s free trade agreements, strong protections in intellectual property rights, among others.

Are you thinking to invest in Mexico?

Below are some aspects you should consider before investing in Mexico:

1. Define Business Model Scheme

One of the most important steps for investing in Mexico is to define the business model scheme. Among the most common schemes are:

Standalone: The foreign company creates a new entity in Mexico, with total control of all operations
Joint Venture: There is an equal partnership between a Mexican manufacturer and a foreign company.
Shelter: A company is hired by another to manage all administrative and legal tasks, while the other company can focus on its core business.
Contract manufacturing: A company is hired by another to produce goods or provide a service.

Furthermore, if company decides to merge with or acquire a growing local company, it important to carry out a due diligence. In order to verify the information about the company to be acquired, obtain useful information to value the purchase, identify potential risks in the deal or investment opportunity, among others.

2. Feasibility Study

A feasibility study before investing in a different country is important to assess the viability of the investment, it provides you with information to make data- driven decisions and can be used to create a strategic business plan.

There are different types of feasibility study, for a example a common study once a company has decided to invest in a country is to decide in which state or area to establish. Within this study the experts evaluate and compare industrial costs, salaries, availability of skilled labor, public safety levels, logistic costs, connectivity, infrastructure, identification of potential suppliers, among others.

Furthermore, there are important feasibility studies in regard to supply chain and logistics, or in foreign trade matters such as the importance of compliance with the rules of origin of a foreign trade treaty, when the investment project is focused on exports and looking for cost reduction.

3. Get expert advice from Shared Business Services in Mexico

Once you have decided to invest in a foreign country it is important to obtain local advice and guidance as laws and regulations vary per country and so the way business operate.

A shared services company or shelter company combines a legal framework and comprehensive services to eliminate regulatory and tax burdens for foreign manufacturing investors. The best way to avoid risks, or expensive mistakes, paying expensive fees from different legal and administrative services firms, is to mitigate them through a shelter company.

In Mexcentrix Shelter we offer a series of tailored professional and management services including:

Start-Up & Shelter Program.
Human Resources
Tax and Accounting

Foreign Trade and IMMEX
Consulting and Auditing

If your company has future plans to invest in Mexico, contact us to receive a cost model analysis.

Sources:

UNCTAD. (2021). United Nations Conference on Trade and Development. Retrieved from World Investment Report 2021: https://unctad.org/system/files/official-document/wir2021_en.pdf

INEGI. (2020). INEGI. Retrieved from Survey on the Economic Impact Generated by COVID-19 on Enterprises (ECOVID-IE): http://en.www.inegi.org.mx/programas/ecovidie/#Documentation

03Nov

LTP Group announces $ 8 million investment in Coahuila

noviembre 3, 2021 Luisa

LTP Group confirmed its arrival in Ramos Arizpe, Coahuila, to position the furniture manufacturing industry in the region.

This company, originally from Denmark, will invest 8 million dollars for the installation of its plant in the Amistad Industrial Park, which will have an area of 4,000 square meters and will be generating 300 direct jobs.

The luxury furniture and clothing manufacturing company has nine plants in Lithuania, Belarus, Ukraine and Vietnam, where they have created around 2,000 jobs.

Henrik Holmgaard Olsson, CEO of LTP Group, stated that they came to this region of the country for the economic and strategic benefits to continue consolidating globally.

“We arrived in Coahuila because we heard very good references from the area, when we started negotiations to come they convinced us even more. We are sure that here we will be able to consolidate and stay for a long time, ”he said.

LTP Group offers reliable production, meeting the strictest environmental, health and safety standards without compromising on functionality, quality and design. It also ensures that all products contain safe components for people and the environment, throughout the entire production chain.

It has certifications such as Bluesign, the Global Standard for Organic Textiles (GOTS), Reach Compliance, Fair Wear, the Corporate Social Compliance Initiative (BSCI), Higg Index, Green Energy, the FSC System, Möbelfakta, ISO 9001, of the Law Toxic Substances Control (TSCA) and the Environmental Protection Agency (EPA).

SOURCE: Mexico Industry

19Oct

Kohler to invest US$181.2 million in Guanajuato

octubre 19, 2021 Luisa

GUANAJUATO – Kohler arrives in San Luis de La Paz, Guanajuato with an investment of US$181.2 million and a commitment to generate 886 direct jobs.

Kohler is a leading U.S. company in the production and design of kitchen furniture, bathrooms and decorative products, which has also successfully ventured into other business areas such as energy, hospitals and real estate.

The Governor of the State, Diego Sinhue Rodriguez Vallejo, highlighted that the Kohler Bajio project, which is starting up, is for the Kitchen and Bathroom Division; its production will be basically for export, although it will also seek to conquer a very important segment of the Mexican market.

The Governor emphasized that Kohler’s arrival in Guanajuato also means the consolidation of the construction, ceramics and materials sector in the state, with companies of great prestige and world class.

The President and CEO of Kohler Co, David Kohler, thanked the state authorities for their support to undertake this project, with which they will contribute to improve the quality of life of the people of this region.

“We are celebrating 30 years of investment in Mexico, when we arrived in Monterrey in 1991, now we are coming to Guanajuato, where we will have one of the most important plants we have in the world”, he added.

The event was attended by the Mayor, Luis Gerardo Sanchez Sanchez, and the minister of Sustainable Economic Development, Mauricio Usabiaga Diaz Barriga, as well as the President of the State Congress, local Congressman Armando Rangel Hernandez.

SOURCE: MEXICO NOW

13Oct

Daimay Automotive expands its operations; invests $ 32 million in new plant in Coahuila

octubre 13, 2021 Luisa

Daimay Automotive Interior inaugurated the facilities of its plant III and IV in Ramos Arizpe, Coahuila, where it will be generating 1,000 jobs.

In September 2020, it confirmed an investment of $ 32 million to expand its operations in this region and increase the production of interiors for cars such as headboards, visors and armrests.

The company installed in the Finsa Industrial Park will also manufacture some awnings for General Motors, which will be used for the assembly of electric vehicles.

Daimay is a Chinese company with more than 20 years of experience in the supply of automotive interiors, both in the area of design and engineering and manufacturing.

Victor Villarreal, regional manager of Daimay, declared that the state is a competitive place that allows the constant expansion of its operations, having a qualified workforce and the advantage of having one of the best logistics for exporting products to North America.

Likewise, Miguel Riquelme Solís, governor of Coahuila, affirmed that in the entity the company will find all the tools to continue consolidating its brand, in addition to a first-rate infrastructure, labor peace and people trained to develop any type of projects.

Daimay Automotive Interior has already invested 150 million dollars and created 4,000 jobs, becoming one of the most important companies in the automotive sector in the state.

Source: Mexico Industry

28Sep

Hitachi to invest US$56 million in the State of Mexico

septiembre 28, 2021 Luisa

STATE OF MEXICO – Alfredo del Mazo Maza, Governor of the State of Mexico, announced that Hitachi will invest US$56 million to improve industrial safety at its plants in Lerma, thus contributing to the creation of 480 new jobs. This investment will be made over 2 years.

Joaquin Loose Doedter, president of Hitachi Mexico; Luis Manuel Vallejo Rosas and Edmund Friedrirh Petersen, Hitachi’s general directors of operations and human resources; alongside the state governor, announced that the company has invested US$97 million in the continuous improvement of equipment and processes to strengthen its operations between 2018 and 2020.

Hitachi’s 3 plants employ more than 2,700 people who manufacture water pumps, balancers, coils, valves, sensors, pistons, shock absorbers and brake casting for brands such as Nissan Ford Honda General Motors Mazda and Fiat Chrysler.

The company also manufactures powertrains, advanced driver assistance systems and chassis for automobiles. Most of its production is destined for the United States, Canada, Germany, the United Kingdom and South Korea, and it has also obtained Q1 certification from Ford, Excellence Supplier from General Motors, and ISO 14001 certification.

Del Mazo Maza recognized the work of the Hitachi team for their commitment to the country and the products they manufacture, as the brand has been present in Mexico for 60 years, standing out for its innovation and diversification.

SOURCE: MEXICO NOW

22Sep

Kavak reaches a value of US$8.7 billion

septiembre 22, 2021 Luisa

MEXICO – The Mexican unicorn Kavak raised a Series E financing round for US$700 million and thus became the second most valuable startup in Latin America, with a value of US$8.7 billion, after the Brazilian neobank Nubank.

According to Kavak’s CEO in Mexico, Alejandro Guerra, the resources of this new investment will be allocated to two objectives: improving the user experience and expanding to other emerging countries.

Kavak currently operates in Mexico, Argentina and Brazil, where it arrived at the beginning of 2021. It has 40 logistics centers for the reconditioning and sale and purchase of pre-owned cars, 20 of which are in Mexico, and 4,700 employees worldwide.

According to Guerra, their estimated goal is to double the number of collaborators globally by the end of 2022 and also to double the number of logistics hubs in Mexico, in order to expand mainly to the northern and western regions of the country by the end of 2021.

Kavak is taking advantage of disruptions in the new car supply chain around the world to reach other emerging markets, both in Latin America and other regions of the world.

Although the executive said that they do not yet know which countries they will take their business model to, he assured that the first place will be Latin American emerging markets, followed by Asia, Eastern Europe and even Africa.

SOURCE: MEXICO NOW

22Sep

AGREEMENT by which the entry into force of the Comprehensive and Progressive Treaty of Trans-Pacific Partnership for the Republic of Peru is announced.

septiembre 22, 2021 Luisa

On September 17, 2021, the Government of Mexico published the following in the Official Gazette of the Federation:
The “Agreement by which the entry into force of the TIPAT for the Republic of Peru is made known.” That the Treaty was approved by the Chamber of Senators of the Honorable Congress of the Union on April 24, two thousand and eighteen, according to a Decree published in the Official Gazette of the Federation on May 23 of the same year, and whose Promulgative Decree of November of two thousand and eighteen was published in the same official broadcasting organ on November 29 of the same year.
That the Treaty entered into force on December 30, two thousand and eighteen for Australia, Canada, the United Mexican States, Japan, New Zealand and the Republic of Singapore, and on January 14, two thousand and nineteen for the Socialist Republic of Vietnam; Agreement by which the diverse one by which the Applicable Rate of the General Import Tax for merchandise originating from the conformed region is disclosed.
The “Agreement by which the entry into force of the TIPAT for the Republic of Peru is made known.” and the Agreement that modifies the various by which the Applicable Rate of the General Import Tax is disclosed for merchandise originating in the region consisting of Mexico, Australia, Brunei, Canada, Chile, Japan, Malaysia, New Zealand , Peru, Singapore and Vietnam, which correspond to Australia, Canada, Japan, New Zealand and Singapore.

Click here to access the official publication in the Official Gazette of the Federation (DOF) for your consultation.

20Sep

Carta Porte

septiembre 20, 2021 Luisa

On May 1, 2021, the SAT released through its portal, the “Part Letter Complement”, which must be incorporated into the transfer or entry CFDI that is issued for the transport of goods, with the In order to prove the legal possession of the transported goods and providing information on their origin and destination.

Carta Porte
Rule 2.7.1.9 of the Miscellaneous Fiscal Resolution (RMF) provides for the obligation to add the complement of the Letter of Carriage to the transfer or entry CFDI that is issued for the transport of goods.

According to the tax authorities, the purpose of the bill of lading supplement is to know precisely the information of the goods that are transferred in the national territory, their origin, midpoints, destinations, owners, tenants and operators involved in the transfer of the goods, and likewise its purpose is to combat informal trade and smuggling.

Who should issue the CFDI with Carta Porte complement?

Companies dedicated to the transfer of goods or merchandise must issue an INCOME type CFDI with a bill of lading complement. The income-type CFDI is issued for the provision of motor transport services, and stated the obtaining of an income for these services.
The owners of goods or merchandise who act as intermediaries or transport agents and move merchandise or owners of goods and merchandise that move merchandise with their own means, must issue a TRANSFER type CFDI with a bill of lading complement. The transfer-type CFDI is issued to cover the transfer of merchandise within the national territory.

What should the Cara Porte Include?
It must include the following data or information:
-Name and data of the exporter of the merchandise.
-Name and details of the carrier (carrier) of the merchandise.
-Receiver of the merchandise.
-Quantity and description of the merchandise (including type, weight, brand, number of packages or units, etc.).
-Value or price of the products.
-Date of transport and when the expedition is made.
-The place of delivery.
-Place and term in which delivery is made to the consignee.
-Compensation to be paid by the carrier in case of delay, if there is an agreement on this point.
-Transfer taxes.
-Customs information.

Entry into Force

On September 21, 2021, the first anticipated version of the Third Resolution of Modifications to the Miscellaneous Tax Resolution for 2021 (RMF) was published on the Internet portal of the Tax Administration Service, in which the entry into force is modified from September 30 to December 1, 2021.

As of the entry into force, goods or merchandise transport services with an income-type CFDI without a “Carta Porte” supplement will not be deductible because they do not meet the tax requirements for the deductibility of tax receipts.

For more information regarding the subject, please contact us.

17Sep

HNI announces investment of 18.5 million dollars for the installation of a plant in Saltillo

septiembre 17, 2021 Luisa

The HNI Corporation confirmed that it will open a new office furniture plant in Saltillo, Coahuila, for which it will be generating an investment of 18.5 million dollars.

This financing is due to the high demand for office seats in North America, and will be generating around 250 direct and indirect jobs. It should be noted that the products that are being manufactured in Mexico will be to supply the five distribution centers that the company has in the United States.

The plant will be located in the Mencorsa Industrial Park and is expected to start operations in the first quarter of 2022 with a capacity area of 160,000 square feet.

Max Sánchez Armas, director of operations in Mexico, thanked the support of the state authorities for being able to facilitate the arrival of the North American company to Mexico, for which he reaffirmed that with this investment a long commercial relationship and several projects will begin.

Likewise, he explained that the decision to have chosen Coahuila is due to the proximity that the state has with the United States, because of the logistics and communications infrastructure, as well as because of the qualified workforce, security and labor peace.

SOURCE: MEXICO INDUSTRY