A manufacturer with a long history in Lee County is closing its Sanford plant and moving the operation to Mexico, a move that means more than 300 local layoffs.

Marelli North Carolina USA, a subsidiary of Italian automotive part maker Marelli, is permanently closing the site, ceasing all production in the second half of 2021. In a layoff notice filed with state officials last week, the company said the closure means job losses for 329 employees.

The plant is located at 2101 Nash Street, southeast of downtown Sanford.

“The automotive industry is facing a number of prolonged challenges,” the company’s general counsel, Michael Monday, said in the WARN notice provided to the North Carolina Department of Commerce. “Vehicle volumes are trending downward, exacerbated by Covid-19 while the introduction of new technology from non-traditional suppliers is forcing Tier 1s to review their operations to increase competitiveness.”

To compete, the firm needs to stay ahead of those trends, Monday said in the notice.

“As part of Marelli’s ongoing strategy to strengthen its market position, we will relocate our US-based powertrain manufacturing operations to Saltillo, Mexico,” he adds. “This move will increase efficiency, enabling the company to become more cost competitive while meeting customer demand.”

The plant has been an institution in Sanford for more than 40 years. Inaugurated in 1976, the plant produces automotive powertrain technologies.

Over the decades, the plant evolved from producing carburetors to modern powertrain systems, including intake manifolds and engine control systems for automobiles, motorcycles, power sports and industrial engines.

Marelli didn’t immediately return a request to comment on the situation.

Source: The Business Journals

(https://www.bizjournals.com/triangle/news/2020/12/07/marelli-sanford-close-layoffs-auto-parts-jobs.html)

The first brick-and-mortar Ikea store in Mexico is scheduled to open in the first quarter of 2021 in Mexico City, although the company’s recently opened online site is already busy from unexpected demand.

“We are excited to open Ikea in Mexico only three years after the decision was made to enter the Mexican market, especially under the tough Covid-19 conditions in Mexico City,” said Ikea Mexico retail country manager Malcolm Pruys in a press release. “It took significant collaboration and support across the Ikano Group and the retail business to make this possible. We now look forward to opening the first store early next year,”

Ikano Group is a corporation that operates franchised Ikea stores in Singapore, Malaysia, and Thailand. A conglomerate with businesses across several industry sectors, it announced in August that it plans to build a 100,000-square-meter manufacturing plant in Ramos Arispe, Coahuila, for mattresses and sofas to be sold in North American Ikea stores.

Ikea store manager Annie Chandler told the newspaper El Financiero that the new physical store will be an anchor in the Encuentro Oceania mall, currently under construction in a former industrial zone in the Moctezuma Section 2 neighborhood in Venustiano Carranza.

Originally, the brick-and-mortar store was meant to open before the online one, but Covid-related issues forced the company to open the online site first. The website opened with a soft launch with no publicity as the company wanted to get to know the Mexican market and work out long-term details like the kind of vehicles it would use in its delivery fleet.

But customers found the site anyway. Within two days, the company was overwhelmed with orders from all over Mexico.

“We launched in a very discreet manner because we hoped to grow slowly,” Pruys told Forbes México. “There was a 1000% more demand than predicted, for which we were not prepared.”

The online site is currently dealing with the unexpected avalanche of orders with only about 150 customer service employees. The website warns customers that deliveries could be delayed up to 15 days.

Meanwhile, plans proceed slowly but surely to install the brick-and-mortar store in the Encuentro Oceania mall. The shopping center, which will have 85,000 square meters of commercial space available, will contain green spaces and will involve the renovation of the Romero Rubio Metro station and sidewalks in the neighborhood, said Galo Rosello, legal director for Pulso Immobiliario, the development company building the over 500-million-peso (US $25-million) project.

According to the Ikea website, the brick-and-mortar store is expected to create around 350 direct jobs and more than 1,000 indirect ones.

Mayor Claudia Sheinbaum recently announced that the mall will also host one of the 300 Pilares community centers she plans to open by 2021 to revitalize community life and reduce crime.

Source: Mexico News Daily

(https://mexiconewsdaily.com/news/ikea-plans-to-open-its-mexico-city-store-early-next-year/)

La Asociación de empresas Manufactureras de Exportación de San Luis Potosí A.C. (index San Luis Potosí) será representada durante los próximos dos años por el nuevo presidente Jesús Octaviano Aguirre, quien seguirá trabajando para impulsar a las compañías maquiladoras e industria manufacturera y servicios de exportación de la entidad.

“Han hecho muy buen trabajo y yo vengo a tomar un gran reto, lo que vengo a aportar es la experiencia y conocimiento que tengo en el sector, ser un enlace y representar al gremio, así como, las relaciones que ha logrado a nivel industria, gobierno, tanto local, como nacional e internacional”, compartió.

Actualmente, index San Luis Potosí está conformada por más de 30 empresas manufactureras de exportación de talla mundial y cuentan con cerca de 15 alianzas estratégicas con diferentes instituciones y empresas de servicio del sector manufacturero de exportación, así como, convenios de colaboración con gobierno.

“Identificaremos entre todo el equipo cuáles son las oportunidades que tenemos y nos enfocaremos en eso, la intención no es querer hacer algo que cueste mucho esfuerzo y tenga poco resultado, realmente es ser objetivos en lo que se puede lograr, con sus limitaciones y panoramas mundiales, no es el momento más fácil para crecer, pero la asociación tiene oportunidad de hacerlo ante las adversidades, sobre todo, porque somos un porta voz del sector”, aseveró el presidente.

Como parte de los impulsos al sector IMMEX en la entidad, el presidente señaló que es de suma importancia la actualización constante y eventos de capacitación, mismos que han destacado a index San Luis Potosí como el principal proveedor especializado en el programa.

“Lo que queremos primordialmente es crecer el número de socios en un 15% en los próximos dos años y también aumentar los servicios que damos como seminarios, capacitación y entrenamiento”, dijo el ingeniero.

Asimismo, darán seguimiento a proyectos y programas que faciliten la actividad de las empresas y a los acuerdos que se promueven con el propósito de encontrar posibles soluciones a problemas específicos de los socios.

Fuente: México Industry

(https://mexicoindustry.com/noticia/jesus-octaviano-aguirre-nuevo-presidente-de-index-san-luis-potosi)

Amazon.com Inc AMZN.O said on Thursday it has invested $100 million in opening new warehouses in Mexico, including its first shipping centers outside the populous capital area, in a bid to offer faster deliveries.

The new sites include two so-called fulfillment centers – one near the northern city of Monterrey and another near the central city of Guadalajara – as well as a support building in the State of Mexico, just outside Mexico City.

Amazon also opened 12 delivery stations, bringing its total to 27 across the country, it said.

“The construction of a solid infrastructure network allows the company to stay closer than ever to clients, and thanks to that, it’s possible to offer fast deliveries,” Amazon said in a statement.

Monterrey and Guadalajara are the two biggest metropolitan zones of the country after the sprawling Mexico City area.

The new facilities represent 69,000 square meters (742,710 sq ft) altogether and create 1,500 direct and indirect jobs, Amazon said.

Amazon in total now runs five fulfillment centers, two support buildings and two classification centers in Mexico, where it launched its marketplace in 2015.

Enrique Alfaro, the governor of Jalisco state that is home to Guadalajara, said the new local warehouse would help more small and medium sized businesses ship their products faster and at lower costs.

Amazon is also striving to make inroads in Brazil, where it recently opened its fifth and biggest fulfillment center in the country, with 100,000 square meters (1,076,391 sq ft).

In both countries, which are the biggest economies in Latin America, Amazon is vying with local rivals for shopper loyalty, despite its ranking as the world’s biggest online retailer.

Source: Reuters

(https://es.reuters.com/article/us-amazon-mexico/amazon-announces-100-million-logistics-investment-in-mexico-idUSKBN2770G2)

The innovation firm Siemens will invest US$14 million in Mexico between 2020 and 2021, mainly focused on innovation and development, Alejandro Preinfalk, president and CEO of the firm in Mexico, Central America and the Caribbean said in a statement.

Preinfalk stressed that at least a third of said investment will be allocated for research, since Mexico has important programs regarding motors and electrical systems.

“We are also working on automation and digitization systems, as well as manufacturing systems in the cloud,” he said.

For his part, Marco Cosío, vice president of Siemens’ Smart Infrestructure division for Mexico, Central America and the Caribbean, stressed that they will also expand their production capacity in Mexico, adding new product assembly lines that are made outside North America.

“It is to increase the capacity in switches, also to have more digital lines thinking of bringing products that are made abroad (…), for that reason we are expanding our hiring of personnel,” said the manager, noting that 1,500 people have already added in four months.

Cosío added that by 2030 they will be neutral in carbon emissions worldwide; “In Mexico these measures are already being taken, one of them is energy efficiency.”

Source: MexicoNow, El Financiero

(https://mexico-now.com/siemens-will-invest-us14-million-in-mexico/)

Auto component major Motherson Sumi Systems on Tuesday has signed an agreement to acquire the activities of Electrical Wiring Interconnection Systems (EWIS) performed at Bombardier Transportation’s manufacturing site in Huehuetoca, Mexico (BT Ensambles México).

MRS is part of the Motherson Rolling Stock Division which designs and manufactures electrical cabinets, power packs and electrical distribution systems for leading rolling stock manufacturers.

The transaction includes the transfer of assets, employees and inventories, on a debt-free and cash-free basis and is valued at around US $ 10 million approx, the auto component maker said in a release. The transaction is subject to customary closing events and expected to complete in Q4 FY20-21, it added.

Vivek Chaand Sehgal, Chairman, MSSL said, “Our focus is always on adding value to our customers’ supply chain and catering to their requirements. This is another step forward in that direction. We are further strengthening the relationship with Bombardier under the global partnership agreement and our collective strength will position us as a preferred solutions provider to our customers in the rolling stock business.”

“The acquisition of the business will enable us to be a truly global partner to our customers as we get the opportunity to serve them in the North American market”, said Andre Gerstner, President, Rolling Stock Division, PKC Group.

According to Jim Vounassis, Chief Operating Officer, Bombardier Transportation “Bombardier Transportation aims to enhance its adaptability and agility to changing market conditions, in order to continue to increase its competitiveness and improve its global footprint. This divestiture is in alignment with our global transformation strategy of reducing the activities to our core- and integrating competencies.”

Source: ET Auto.com

(https://auto.economictimes.indiatimes.com/news/auto-components/motherson-sumi-systems-signs-pact-to-acquire-bombardiers-mexico-based-electrical-wiring-biz-for-us-10-mn/78773246)

Dachser Mexico, a subsidiary of global logistics provider Dachser, announces it is expanding its bonded warehouse facility located in Parque el Marqués at Querétaro, one of Mexico’s key manufacturing hubs. Addressing the growing needs of the market, this new state-of-the-art facility launched October 1.

Considered the crown jewel of the Bajio manufacturing region, Querétaro’s main manufacturing industries include automotive assembly, auto parts, aerospace and household appliances. The region touts a highly skilled manufacturing workforce of more than 176,000 people employed by over 1,300 companies in the region. Querétaro’s central location gives it access to more than 45 million people within a 350-kilometer radius.

“As Mexico’s manufacturing sector continues to grow, we are elevating our investment in the market to ensure supply chain fluidity in the region. Our goal is to help our customers maximize the potential Mexico has to offer,” said Edgardo Hamon, Managing Director, Dachser Mexico. “This newly expanded bonded warehouse facility in Querétaro will provide a competitive advantage to companies of all sizes and demonstrates Dachser Mexico’s continued commitment to the growth of this vital economic region.”

Utilizing Mikado, Dachser’s proprietary global warehouse management system, this expanded best-in-class bonded warehouse facility is equipped to support the manufacturing sector as well as other industries. It will offer 4,000 square meters of total warehouse space with an electrical sub-station on premises. It will also provide a wide variety of enhanced service capabilities as well as a competitive end-to-end solutions portfolio.

Some of these enhanced services include vendor managed inventory (VMI) system capabilities that enable customers to quickly replenish inventory without disruption. Also, safe storage is a top priority, as the site is also outfitted for the storage and handling of dangerous goods in accordance with compliance regulations. It is equipped with state-of-the-art fire alarm systems to ensure safe storage conditions.

Further, container yard services offer customers flexible storage solutions along with full and transparent access. Other services include UVA labeling with pick-and-pack outbound shipment services, process optimization from sender-to-buyer with extended distribution cut-off times and warehouse pick-up times. Moreover, the facility will be able to assist customers in meeting the dynamic challenges faced in their supply chains by providing flexible response times caused by seasonal and irregular demands.

“These investments are needed not only to boost support for our customers, but to also provide speed, reliability and simplicity in the supply chain to this economically important region,” added Mr. Hamon. “Leveraging Dachser’s global footprint and extensive network, Dachser Mexico will continue to invest in warehouse and distribution solutions that support seamless logistics benefitting our customers while reducing complexity.”

With more than 170 warehouses worldwide and over two million pallet spaces, Dachser offers its customers comprehensive supply chain solutions throughout the globe. As Dachser Mexico increases its presence in the area, businesses will have greater ability to reach more of their customers and markets.

Source: DC Velocity

(https://www.dcvelocity.com/articles/47473-dachser-mexico-expands-warehouse-facility-in-queretaro)

The maquiladora industry of medical devices in the state of Baja California could close the year with a generation of 85,000 jobs, since this sector, despite the contingency derived from COVID-19, has grown in labor, said the Ministry of Sustainable Economy and Tourism (SEST) of the state of Baja California.

“This sector started the year with 71 (new) jobs and despite the pandemic, we are going to close the year with more than 85,000 jobs, which speaks of the confidence there is to invest in Baja California”, explained the head of the SEST, Mario Escobedo Carignan.

The official said this within the framework of the delivery of 10,000 surgical masks to the General Hospital of Tijuana, donated by the Availmed company, derived from the efforts of the Maquiladora Industry and Export Manufacturing Association (INDEX) Zona Costa.

Availmed is a manufacturer of single-use disposable medical articles, which produces for major brands in the global market, is part of the industrial giant Flextronics and has a workforce of 3,100 employees in Tijuana.

Among other products it manufactures are catheters, devices for the treatment of vision, syringes, plastic parts, medical instruments and feeding bags for pathological treatments.

Escobedo Carignan previously reported that Medline Industries, another manufacturer in the medical sector, will expand in Mexicali. It has two manufacturing plants for its sterile surgical tray and Centurion divisions, where it will employ 2,200 employees. Likewise, the minister explained that the economic reactivation has been developed in a responsible manner, which has placed the entity as a leader in the economic reactivation of the country as well as in the generation of new jobs.

Source: Mexico Now, Forbes.

(https://mexico-now.com/medical-devices-industry-to-generate-85000-jobs-in-baja-california/)

The Monterrey based company Impulsora, a leader in Mexico in the commercialization of electrical, lighting and hardware equipment, signed an agreement with the American company Tesla to distribute and install batteries for the storage of electricity for the commercial and industrial sector.

In an interview Gabriel Arroyo, manager of Impulsora’s Energy Storage division, a firm that is part of the Nuevo León Energy Cluster, explained that this agreement will allow them to market the electrical energy storage units designed by Tesla in the United States.

“These batteries are made of lithium and are much more efficient compared to other materials. The battery modules, the inverters and the thermal system, among other components of the units, are pre-assembled and tested at the factory in an environmentally sealed box, ideal for the commercial and industrial sector that consumes electricity from medium voltage rates hours,” Arroyo explained.

He commented that the “Megapack,” the unit’s name, is available in 2-hour and 4-hour variants with capacity maintenance options, and inverter and battery module quantities can be configured to meet custom project requirements.

“These equipment, in addition to saving energy, save demand; one of its main uses is the ‘peak shaving’, where you literally ‘shave’ all these demand peaks that you have, because the CFE will take the maximum peak and charge the energy  based on that peak,” he said.

Source: Mexico Now, El Financiero.

(https://mexico-now.com/impulsora-and-tesla-sign-agreement/)