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

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

With more than 100 million dollars, Le Bélier confirmed that he will continue developing investment projects in Guanajuato.

The world’s leading aluminum smelting company in the automotive industry maintains its confidence in the region, which is why it will be generating 500 new jobs at its production plant in San Miguel de Allende.

Diego Sinhue Rodríguez Vallejo, governor of Guanajuato, stated that this project is the only one nationwide that brings together all the aluminum smelting techniques through state-of-the-art systems, which are supported by automation and digitization.

The state executive and government representatives had a meeting with David Guffroy, CEO of Le Bélier and his work team, where they shared that their investment in Guanajuato was a good decision due to connectivity, highly competitive workforce, possibilities for new businesses and ecosystem. local supply offered by the state.

“That is why we take care that the companies that arrive have a high social commitment and care for natural resources, that is the case of Le Bélier, which has an SBT certification for the good of our planet,” said Guffroy.

This French company serves the auto parts market for brands such as BMW, Mitsubishi, Daimler, Continental, Hitachi, among others. In addition, it has a workforce of 3,200 people, has a presence on three continents and estimates for 2021 more than 290 million euros in sales.

It should be remembered that, in June of this year, the European company began the construction of its plant that will be located in the San Miguel de Allende Business Park, where it is expected to start operations in the first months of 2022. On that date, had confirmed an investment of 68 million dollars and the generation of 500 direct jobs.

SOURCE: Mexico Industry

The Fasemex Group will invest 3 million dollars to install its metalworking plant called Lidell in Monclova, and promote the economic development of the Central Region of Coahuila.

This investment will generate at least 300 jobs for the production of hoppers.
Likewise, the expansion was announced by the Freightcar America company, which will invest 60 million dollars for the production of train wagons at its Castaños plant.

During the event, the first stone of this megaproject was laid, which already employs 900 people, a figure that could increase with this injection of capital thanks to the growth they will have.

For his part, Miguel Ángel Riquelme Solís, governor of Coahuila, recognized investors for their great effort in times of pandemic and promised to provide them with all the tools for their consolidation, such as a qualified workforce, job stability and well-being for the workers.

Jesús Meyer, president of corporate Freightcar America, said they have managed to build the 1,000th rail car, which highlights the highly talented and specialized human capital they have.

“This is a sample of the growth we have had in the manufacturing field, I have worked for nearly 40 years in this field and I can realize that the Castaños plant is world-class in quality and personnel,” concluded the manager.

SORCE: Mexico Industry

GUANAJUATO – Diego Sinhue Rodriguez Vallejo, Governor of Guanajuato, agreed with Nestle in Switzerland an investment of US$160 million to be placed in Guanajuato’s Inland Port, which will generate 200 new direct jobs for the state.

This investment will begin in 2021 and will be part of an expansion of its production plant located in Guanajuato Puerto Interior, in the municipality of Silao.

Sinhue explained that this capital investment will increase production from 214,000 to 285,000 tons of dry feed, as well as from 12,000 to 25,000 tons of wet feed.

“It is good news because it also confirms the start of the economic reactivation in our state, with such an important company as Nestlé,” said the president.

He expressed his interest in further strengthening relations with Switzerland, and highlighted that there are currently investments of Swiss origin in Guanajuato of US$400 million, offering 840 committed jobs, mainly in the automotive, auto parts and agri-food sectors.

SOURCE: MEXICO NOW

DURANGO – Grupo Prysmian, a world leader in the manufacture of electrical and telecommunications cables with headquarters in Milan, Italy, and more than 40 years of presence in Mexico with 6 plants and more than 1,650 employees, announced the investment of US$27 million to begin the expansion of its cable and fiber optic manufacturing plant in the state of Durango.

The plant installed in Durango, was inaugurated in 2017, manufactures fiber and optical cables used in the telecommunications sector to enable internet access and connectivity services for communities, residential areas, businesses and industries.

The expansion is expected to double the current volume from 2.5 to 5 million kilometers of optical fiber per year, which will strengthen Prysmian’s leading position as a key strategic player in this segment.

“We are very proud of this important investment because even in the midst of this pandemic, we are very committed to our customers in the telecommunications industry and to Mexico,” said Marcelo De Paola, president and CEO of Grupo Prysmian in Mexico.

The expansion project will be completed in 2022 and would make Prysmian’s Durango plant one of the group’s three largest in telecommunications.

SOURCE: MEXICO NOW

MEXICO – In view of the reactivation that aviation has shown in the face of the coronavirus pandemic, by the end of 2021, Mexican aerospace industry exports will have a marginal recovery, registering an amount of US$7.1 billion, an annual growth of 7.5%, according to a representative of the sector.

“During the past year, this sector reported a figure of US$6.6 billion,” detailed the executive director of the Mexican Federation of the Aerospace Industry (FEMIA), Luis Lizcano.

Lizcano explained that several aircraft parts are manufactured in Mexico and then exported, mainly to the United States and Canada, where they are assembled completely.

However, the president of FEMIA reported that Mexican aerospace industry exports at the end of the year will be 26% lower than in 2019, the pre-pandemic period.

“As domestic and international flights are reactivated, this will push us to have a higher level of parts sales abroad, which we expect to continue in the coming years,” the executive mentioned.

Lizcano commented that this industry is present in 20 states in Mexico, including Querétaro, Chihuahua, Sonora, Nuevo León and Baja California; the main exports are to the United States, Canada, France, Germany and the United Kingdom.

SOURCE: MEXICONOW

STATE OF MEXICO – The Governor of the State of Mexico, Alfredo Del Mazo, held a meeting where he presented the investment plans that the automotive supplier Adient has for the state, which amount exceeds US$24 million for the development of two projects.

The projects that this company will develop in the State of Mexico are the production lines for seats for Ford’s Mach-e and for the electric Ford Explorer, which will generate 1,550 jobs.

Adient executives, led by Sergio Carballo Castillo, Regional Operations Director, reported that their Lerma plant is leading the project to manufacture the seats for Ford’s Mach-e, while in 2022 they will initiate a similar project to supply the seats for the first electric Ford Explorer.

The minister of Economic Development of the State of Mexico, Pablo Peralta García, announced that Adient is part of a sector that represents 12.6% of the economy, more than 20% of manufacturing production and more than 2.6% of jobs.

It is worth mentioning that Adient is an organization that supplies one out of every three car seats worldwide, stands out for the quality of its products and its innovation capabilities.

SOURCE: MEXICONOW

SAN LUIS POTOSI – The president of Kansas City Southern de México, held a meeting with Juan Manuel Carreras López, Governor of the State of San Luis Potosí, where he presented an investment of more than US$113.5 million for the next few years.

The purpose of the meeting was to learn about and promote the development of more and better railroad infrastructure for national and international commerce in the state.

This project is expected to provide 33 kilometers of double track on the main line that crosses the entity.

It is worth mentioning that 12 projects have been developed, 6 of which have already been completed, to improve trade in this important hub of the Bajío region.

Kansas City Southern de México crosses 15 states in the country’s industrial zone with three intermodal terminals and connects the four most important ports with railroads. During its stay in Mexican territory, it has invested almost US$5 billion in 23 years.

The minister of Economic Development, Gustavo Puente Orozco, pointed out that the international company recognizes the strategic importance of San Luis Potosí for commercial routes; therefore, the decision was made to invest in the state.

SOURCE: MEXICONOW

GIS announces a US$30 million investment for the capacity expansion of its auto parts foundry at its Draxton business in San Luis Potosi to begin operations during the last quarter of 2022.

Draxton, dedicated to the casting and machining of critical auto parts for brake, engine and chassis systems for the global auto parts industry, has operations in six countries on three continents: Europe, Asia and in North America with plants strategically located in central and northern Mexico.

Through a statement, the company announced the construction and expansion of a new nodular iron smelting line at its San Luis Potosí production plant, which will allow it to increase its installed capacity by 30,000 tons per year to reach a global annual smelting capacity of close to 620,000 tons.

The new casting line will focus on the production of calipers and brackets, critical and safety-critical brake system parts that are 100% compatible with hybrid and electric vehicles, allowing Draxton to participate in the electrification of the global automotive industry.

“GIS’s financial strength allows us to finance this expansion of Draxton with our own resources and thus be ready to take advantage of the business opportunities presented by the USMCA agreement for the automotive industry,” said Jorge Rada, Chief Operating Officer of GIS.

GIS also reported that it refinanced the loan contracted for its Evercast foundry and machining business with a cost reduction and a term extension to 2026.

Source: MEXICONOW