Have you heard about Nearshoring to Mexico?

It would give the region almost $78 billion dollars in new exports, particularly pharmaceutical, textile, automotive and renewable energy.

Boce Industrial Systems is installed in Querétaro with an investment of 1.5 million dollars to potentiate the supply of the entity and cover the North American market. The company is engaged in the manufacture of automation lines

Querétaro, October 3, 2021.- Boce Industrial Systems, a company of Turkish origin, settles in Querétaro with an investment of 1.5 million dollars. The brand is dedicated to the manufacture of automatic lines for treatment and electro-finishes for corrosion protection, decorative or functional.

During the inauguration and in his participation, Ahmet Bozkurt, General Director of the company, thanked Querétaro for allowing him to settle in the entity, explaining that he sees in the state a strong commercial ally to cover the North American market. In addition, he assured that the company will seek the welfare of all Queretanos and that its intention is to empower suppliers to be business partners for them and other companies.

In his speech, Marco del Prete Tercero, Head of the Secretariat of Sustainable Development of Querétaro (Sedesu), reported that there are countries that already see in Querétaro a new home and that the triumphs are in the small details that lead to better jobs for the families of the state. He mentioned that Boce is an important company because its teams will help improve the production processes of new plants that are coming to the entity. He assured that, from his position, he would see how to effectively support more companies to promote local supply.

Reference

Anónimo. (30 de Septiembre de 2022). Cluster Industrial. Obtenido de Boce se instala en Querétaro con inversión de 1.5 millones de dólares: https://www.clusterindustrial.com.mx/noticia/5345/boce-se-instala-en-queretaro-con-inversion-de-1-5-millones-de-dolares

Mexico is fashionable in Singapore, says Francisco Rios, a member of the Board of Directors of the Singapore-Mexico Chamber of Commerce.

Mexico would become the manufacturing center for 5 companies from Singapore, who study investing in the construction of factories and will move their production lines from Asia to the Bajio and other regions of the country.

“Of the 7 companies (based in Singapore), which came a month and a half ago (to know the Mexican market), I think there were 5 that do not have a presence in Mexico and are evaluating (investing), while the other two are evaluating expansion,” reveals Francisco Ríos, member of the Board of Directors of the Singapore-Mexico Chamber of Commerce (SgMxCham).

Singaporean companies are very interested in jumping on the bandwagon and the trend of nearshoring, manufacturing and the reconfiguration of the industry globally, says the founder of the business chamber to Forbes Mexico.

“Today it is no longer enough to be on the other side of the world (Asia), some production processes need to be here in Mexico,” says the representative of the business organization, which was presented on September 20, 2022, to Singaporean and Asian investors in Singapore.

The relocation, known as nearshoring, of Asian companies is due to the intention of complying with the new rules of the Agreement between Mexico, the United States and Canada (T-MEC), as well as no longer paying high transport prices and no longer depending on the maritime industry. Also shield themselves from the disruptions of supply chains caused by the Covid-19 pandemic and Russia’s war against Ukraine.

About 20 days later, they inaugurated the new headquarters of the Singapore-Mexico Chamber of Commerce at the facilities of Interplex, a Singaporean specialized manufacturing company with operations in different cities of Mexico, led by Alessandro Perrota, founding member of the Chamber. And just this week it was presented in Mexico.

Luis Coronado, EY partner and Global Tax Controversy leader, is listed as president of SgMxCham, and Agustín García López, Mexico’s ambassador to Singapore, is the honorary president.

“(The founding of SgMxCham arises because) we have seen that over the last decade, relations between Mexico and Singapore at the governmental level and at the commercial level have been growing,” says Franciso Ríos.

He recalls that governments have created new commercial avenues such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Free Trade Agreement between Singapore and the Pacific Alliance, as well as Singapore rose as an associate member of the Pacific Alliance.

“We are in a very good moment to add a tool to this whole (commercial) ecosystem, as well as help the private initiative to get good partners on the other side of the world,” he says.

The idea is to have as members companies from Singapore, Southeast Asia with operations in the country formed by 73 islands and Mexican to make synergies and investment partnerships, says the founder of the Singapore-Mexico Chamber of Commerce.

Also, the mission of the Chamber is to follow the trend and help companies see those opportunities, which are being created and talk better about the areas with others.

“We have started with a major effort in Singapore of companies that are based there, that want to look at Mexico and need a little more help to look at Mexico and register within the Chamber.”

In 2023 we will have a very solid base of companies in Singapore and Mexico, and we are not alone in attracting companies to SgMxCham, he points out.

“There are other associations that we work with very closely, such as the COMCE (Mexican Council of Foreign Trade) here in Mexico, the Latin American Association and the Latin American Chamber in Singapore.”

Francisco Rio points out that nearshoring is one of the topics of interest for the associates, even after the creation of the Singapore-Mexico Chamber of Commerce the first business mission was carried out in the Bajío.

“There were 7 manufacturing companies from Singapore, which came to Guanajuato to the Hannover Messe of Mexico and Latin America. Then a group of Mexican companies also went to the Hannover Messe Singapore event, “says the director of Group COO (LATAM) and SEA Group.

A couple of the companies, who participated in the trade mission in Guanajuato, have investments and factories in Mexico, so “they want to see how they can grow them more,” he says.

At the moment, Singaporean investors are brought by their own customers, who are part of the manufacturing chain in Mexico and are “looking to be served much faster and have a much closer relationship with their own suppliers,” adds Francisco Ríos.

Additionally, there is a modernization of the industry in Mexico, which is accompanied by all the global trends of industry 4.0: “There we think that some of the solutions that come from Singapore could be very interesting.”

There are about 5 billion dollars in the bilateral balance of Mexico and Singapore, one of the highest in Latin America and there is a diversification of products.

Mexico and Brazil are Singapore’s two major trading partners in Latin America, although it depends a little on the year on commodities and things are changing a bit, he says.

“The government of Mexico sees the government of Singapore as a partner on the other side of the world and we are also convinced that the government of Singapore sees Mexico as a partner on this side of the world.”

“In Singapore, Mexico is all the rage, as in September a replica of Chichen Itza was installed in the Gardens By The Bay, which is one of the most interesting places in Singapore today.”

In addition, there was the emergence of a large number of Mexican restaurants, some more authentic and others less authentic, he clarifies.

“Definitely, Mexicanism is gaining more momentum in Singapore,” says the representative of the Singapore-Mexico Chamber of Commerce.

References

Hernández, E. (November 23, 2022). Forbes. Retrieved from Nearshoring: About 5 Singapore companies consider building factories in Mexico: https://www.forbes.com.mx/nearshoring-unas-5-empresas-de-singapur-evaluan-construir-fabricas-en-mexico/

Ambu opened its largest plant in Ciudad Juárez, Chihuahua, allowing the company to scale production and ensure greater proximity and supply of products to North America.

This factory has a total capacity of nearly 30,000 square meters; and after a period of unsettled global supply chain landscape, being able to secure growing manufacturing capacity is imperative.

The new plant is a strategic step in being closer to the North American market by having a more sustainable and flexible approach to supply chain constraints, enabling cost-effective transportation and better supply of products to customers.

Britt Meelby Jensen, CEO of Ambu, said that the opening of the new site in Mexico is an important milestone for the company. And delivering innovative, high-quality products to customers is the priority and has been a key focus area during Covid-19 and global supply chain disruptions. 

“Our investment in the new Mexican plant is a strategic decision to secure future production capacity, which will increase our flexibility and proximity to customers in North America and thus ensure a reliable supply of products.”

REINFORCED MANUFACTURING IN RECORD TIME

In less than two years, the new manufacturing plant in Mexico has been built . The foundation stone was laid in March 2021 and the first products, the SPUR resuscitators, were shipped to the United States.

At the plant, Ambu  will produce single-use endoscopes  within the four main segments of endoscopy: pulmonology, urology, ENT and GI , as well as parts of our anesthesia portfolio. In addition, the company anticipates the creation of a total of 3,000 new jobs, as production increases in the coming years.

Today, Ambu  owns and operates manufacturing facilities in China, Malaysia, the United States and Mexico, totaling nearly 100,000 square meters of production space on all continents. In addition, the new plant has an additional 20,000 square meters for future expansion.

SOURCE: Mexico Industry

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