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 

At least 10 Mexican states are participating in the Hannover Messe in Germany from the Mexico Pavilion; states such as: Guanajuato, Jalisco, Puebla, Nuevo León, Aguascalientes, Querétaro, San Luis Potosí, Chihuahua, Tabasco and Tamaulipas.

In this 2023 edition, the fair’s theme is: “Innovation makes the difference”, and is focused on industrial technology and advanced manufacturing, showcasing the latest innovations and developments in areas such as automation, robotics, energy, mobility and information technology.

The objective is that through the Ministry of Foreign Affairs (SER), various alliances and meetings will be held between representatives of each state, with businessmen and authorities from Germany, in order to propose projects and attract new investments.

The international event, the most important industry showcase in the world, brings together world industry leaders to share knowledge and present the latest innovations in technology, automation, robotics and engineering systems.

The states were represented by the heads of the secretaries of economic development, mayors and governors, as well as some businessmen from these regions in order to make their presence felt with projects and investment opportunities for Mexico.

In the case of Jalisco, they presented the public policy called: Jalisco Tech Hub Act, to representatives of the Indonesian embassy, guest country at the Hannover Fair, and to senior officials of the German company Bosch.

On the agenda are meetings with companies developing software, virtual reality and artificial intelligence (AI) for remote access, control and support of computers and other technological devices.

They will also seek advice with the central agency responsible for promoting the economy and science in Germany and Latin America and with the Mexican Embassy in Germany to detect opportunities in the global scenario and increase productivity in companies.

The representation of Puebla is present for the second time in this fair and it is Olivia Salomón, from the Ministry of Economy who heads the delegation and will seek to promote the attraction of high-tech investments in the entity, as it has a strong workforce and supply in this sector.

They will also seek to promote opportunities in sectors such as the automotive and textile industries.

The state of Nuevo Leon will continue to take advantage of the benefits offered by nearshoring, as at least 72% of this activity is captured by the state, so the delegation met with the Mexican embassy in Germany, where they stressed that the work and investment projects in road infrastructure, customs and services, was a key piece for companies like Tesla and its network of suppliers to invest in the state.

For its part, Aguascalientes strengthens commercial ties and increases the attraction of projects of German origin, being this the third ally country in terms of foreign investment in the state for 804.5 million dollars and the generation of more than 6,000 permanent jobs.

Queretaro shows its industrial capabilities by having two meetings with German companies, one of them from the automotive sector, and the other is already installed in the state; however, there is interest in expanding its operations to train talent in the automotive sector. They will also have a meeting with the German university near Hannover in order to have academic exchange and training programs.

In addition to the confirmation of Bullsafe for 175 million pesos and the generation of 200 jobs.

San Luis Potosí is taking advantage of the opportunities that will open up after the BMW Group’s investment of 1.5 billion euros for an electric vehicle plant. The logistics project in this state was also discussed, with a view to becoming the best in Latin America, with an investment of 18 billion pesos in infrastructure.

Chihuahua sought to strengthen commercial ties with the participants and attract more projects from Germany, which ranks third in foreign investment in the state for 804.5 million dollars, in addition to the fact that the companies from this country that have settled here generate 6,000 permanent local jobs.

Tabasco strengthened opportunities in the energy sector, as this entity has a wide range of projects related to it, in addition to the specialization of the labor force of the entity.

Tamaulipas in this event led to connections and collaboration opportunities to boost economic development and investment in the state.

Source: Mexico Industry 

TOLUCA – ZF announced an investment of 39.6 million euros to build a manufacturing plant in Toluca, focused on the production of components for electric passenger vehicles.

The new plant will have high-capacity assembly lines for manufacturing, just-in-sequence front and rear axles and suspension modules for electric passenger vehicles.

The investment will be distributed through 2024, generating close to 150 new jobs over the next two years, while increasing the current plant footprint in the state by approximately 8,000 square meters.

“As the automotive industry evolves to become more electrified, automated and connected, our manufacturing capabilities are evolving as well, and we are very excited to establish this new state-of-the-art manufacturing facility in Toluca,” said Dale Chon, ZF Group Vice President of Automotive Chassis Technology for the North America Region.

Last year, the company invested more than 46 million euros to increase production of control arms, stabilizer bar arms and steering ball joints at another complex, also located in the city of Toluca.

ZF currently has 18 sites in the country, manufacturing chassis, steering, brakes and other components. In addition, Tier 1 opened a new Research and Development and Shared Services Center in Monterrey in 2022 and is building a plant at the same site to begin production of advanced electronics and safety devices in 2023.

Source: Mexico Now 

The auto parts manufacturing sector is the main recipient of nearshoring investments, with 37%; followed by the furniture industry, with 18%; machinery and tools, 15%; electronics and household appliances, with 15%; high tech, with 8%; pharmaceuticals, with 5%; and plastics, with 1%, according to information from the National Auto Parts Industry (INA).

It also informed that 40% of the total relocation of plants in Mexico corresponds to Chinese origin, 20% to the United States, 11% to Japan, 9% to Germany and 8% to South Korea, among others.

“Regarding the investment announcements made in our country, which amount to 15 billion dollars in the Mexican automotive sector alone, the manufacturing of batteries for electric cars, chassis, transmissions, automotive interiors, aluminum rims, mold and tooling manufacturing, electrical components, plastic injection parts, engine parts and line expansion,” said Alberto Bustamante, general director of INA.

Source: Mexico Industry