MexicoToday interviews Jorge Lopez, ProMexico's Regional Director for North America, who speaks about the factors that make Mexico an important international trading partner to watch. Jorge speaks about Mexico's strong economy and the growing importance of Mexico as an international trade partner as… well as the importance of Mexico's trade with the U.S.
MexicoToday interviews Jorge Lopez, ProMexico's Regional Director for North America, who speaks about the factors that made Mexico one of… the strongest economies in the world today. Mexico is currently the 12th strongest economy and growing at a pace of 4% annually. Jorge notes that Mexico's ability to push forth policy on the economic and microfinancing front in the last 25 years has helped Mexico's economy get to where it is today.
The rocky desert of northern Baja California harbors has been praised as one of the best wind resources in the Americas. Not far from the border of Southern California, is located the renewable energy goldmine, La Rumorosa (Spanish for “The Murmuring”), known for its insatiable appetite for… energy.
Sempra Energy, based in San Diego, has roughly accumulated over half a million acres in La Rumorosa and by the end of the years plans to break ground on a 52-turbine, 156-megawatt wind project. The company plans to ship the electricity over a cross-border transmission line which will connect with the San Diego grid.
In just the first phase, Sempra plans to build up to 1,200 megawatts of wind capacity in the area, which is expected to generate electricity for up to 65,000 homes. “Generally what attracted us was the wind availability and the ability to export,” said Alberto Abreu, Sempra International director of project development. “This is one of the best undeveloped wind resources in all of the Americas.”
La Rumorosa isn’t the only wind hotspot in the country; it is Sempra’s first foray into wind power in Mexico. It is an attempt to take advantage of California’s neighboring renewable green energy standards and regulations. At a minimum, the state has recognized about 33 percent of electricity supplies must come from clean energy by 2020.
Guadalajara, Mexico, will soon not just be known as the land of the world renowned tequila or the home of the mariachi music – but as the hub for a new “Digital Creative City”. Located in the state of Jalisco, Mexico’s second largest city and one of Latin America’s most… important historial districts is on its way to soon becoming a 21st century city of world-class, environmentally sustainable creative culture and work that will provide a better quality of life for its population.
The “Digital Creative City” is a project resulting from Mexico’s vision to become a strategic node in digital media production for the Spanish and Latin market as well as high value services to world class media partners, as it foresees to grow its $5.6 billion market in creative industries exports and content (film, television, videogames and multimedia). The need for specialized content that caters to the Spanish-speaking market, along with the search of strategic partners for global media companies based primarily in North America and Europe, has also prompted increased interest in the region.
This vision fits into the expected growth in sales of the media and entertainment industries around the world, estimated to be more than $1.5 trillion, according to a recent PricewaterhouseCoopers study “Media and Entertainment Outlook 2009-2013.” Also, Mexico offers the greatest cost advantages for the development of software, videogames, Web and multimedia among 102 countries, according to KPMG’s “Competitive Alternatives 2010” report.
In addition to becoming a world-class digital media hub, Mexico’s “Digital Creative City” project seeks to create a new economic development model that is both sustainable and within the framework of a future prototype urban environment. It also seeks to establish an urban smart solutions living lab to better understand city dynamics through fully integrated system platforms.
The “Digital Creative City” project will enable Mexico to capitalize on its creative culture, as it implements the largest future urban development of its kind in Latin America. The initiative will also provide a state-of-the-art platform for media industries via a living lab for integrated urban solutions investments. This ambitious project will provide many key benefits for Guadalajara, including the generation of high-paying jobs, increased cultural exports, and the transfer of cutting-edge technology.
In addition to the digital media production capabilities, Guadalajara has many other things to offer, which will become key elements of the “Digital Creative City,” such as:
Mexico currently boasts a vibrant economy with a commitment to free trade that keeps companies coming back for more. Learn about what… brought Unilever to Mexico from the President of Personal Care, Dave Lewis.
On January 16, Lectra, the world leader in integrated technology solutions dedicated to industries using soft materials such as textiles, leather, industrial fabrics, and composite materials, announced its plans to exhibit at Intermoda July 17-20 in Guadalajara, Mexico. A preview of the company’s solutions is on display… at the National Chamber of the Apparel Industry in Jalisco from June 27 to July 16.
During Intermoda, at Lectra Stand, the company will present its industry-standard and leading-edge pattern and marker-making solutions, Modaris and Diamino. This allows for the creation, development, verification, industrialization and grading of patterns faster, at lower costs and with flawless quality, while automatically generating markers that respect all fabric and garment constraints from the simplest to the most complex shapes.
Additionally, Lectra will team up with The Camara Nacional de la Industria del Vestido, providing a 3D body scanner. Lectra developed and will demonstrate the Modaris V7, the company's latest version of its apparel pattern-making and grading software solution, which is now fully-integrated with 3D prototyping technology.
Modaris V7 is a powerful and user-friendly solution that combines the best of pattern-making, draping, sampling, grading and 3D virtual prototyping where 2D patterns can be drafted and then seen right away in 3D.
This interactive process significantly reduces prototyping costs and development time while giving companies the control and flexibility they need to make decisions as quickly as possible and stay ahead of the market.
"Lectra is excited to showcase these dedicated range of fashion solutions at Intermoda and demonstrate our commitment to the industry by partnering with leading organizations like Universidad Jannette Klein and CANAIVE," stated Roy Shurling, President of Lectra North America.
Fourth-quarter gold production rose 145 percent to 72,119 ounces. Silver production fell 7 percent to 1.1 million ounces.
AuRico said in a statement that the Mexico-focused company's revenue rose 38 percent to $154 million.
The Toronto-based company, which changed its name from Gammon Gold in May last year, said gold production for the quarter from El Chanate mine, located northeast of Caborca in Sonora State, Mexico, was 18,080 ounces.
Shares of the company closed at $8.91 on January 12 on the Toronto Stock Exchange.
Production of the company’s Young-Davidson mine remains on schedule to begin by the end of March 2012.
"2011 has truly been a transformational year for AuRico. Through the two strategic acquisitions completed in 2011 we have expanded our asset base to include quality assets like El Chanate and Young-Davidson," Marion concluded.
The Mexican government has been supportive of the development of biotech crops, including corn, while recognizing the genetic diversity of native corn species.
Biotech-derived crops are still not commercially cultivated in Mexico. However, the government of Mexico has continued to grant permits to developers for experimental releases of genetically-modified corn into the environment.
According to the Bio-safety Law, it is in the best interest of biotech developers to complete the experimental stage as soon as possible to begin the pilot stage and, afterwards, the commercialization stage. Mexico has no significant trade barriers to biotech crops or foods derived from biotechnology.
Mexico was the United States’ second largest agricultural trading partner in 2009, while the United States was Mexico’s principal agricultural trading partner with nearly 80 percent of Mexico’s agricultural exports going to its northern neighbor.
In 2009, U.S. agricultural exports to Mexico were valued at $13.9 billion, while U.S. imports of Mexican agricultural products were valued at a record $11.9 billion. The impact of the North American Free Trade Agreement (NAFTA) has been substantial, with U.S. agricultural exports to Mexico increasing by $9.3 billion between 1994 and 2009 and Mexican agricultural exports to the United States increasing by $8.5 billion in the same time frame. Mexico is the largest market for U.S. soy-meal, sorghum, dry beans, rice, apples, beef, dairy, swine, and turkey.
The Secretariat of Agriculture approved 23,000 acres of commercial biotech cotton for 2011 and may approve up to 500,000 acres for 2012. Mexico could be self-sufficient in cotton production by 2016 and an exporter by 2020. According to Agro Bio, biotech cotton requires only 0.4 quart of insecticide per acre instead of 4.0 to 5.0 quarts of pesticide applications for non-biotech seed.
Under the Bio-safety Law and its Implementation Rules (Reglamento), three different agencies are responsible for Mexico’s biotech policies, while the Inter-Ministerial Commission on Biosecurity and Genetically Modified Organisms (CIBIOGEM) coordinates Mexico’s biotech activities.
Mexico’s biggest low-cost carrier, Volaris, recently purchased 44 new Airbus planes in what is “the first major sale of European aircraft to Mexico.” In the words of the French Minister of State for Foreign Trade, Pierre Lellouche, “This opens up a new vista for the French… and European aviation industry,” as well as for Mexican aviation. The aircraft order, which includes 30 A320neos and 14 A320s, will make Volaris more competitive in domestic flights against Mexico’s national airline, Aeromexico. Lellouche declined to say how much the sale of the 44 new Airbus planes was worth, yet aviation sources claim the total amount could surpass $5 billion.
With this new deal, Volaris will continue building on its success as a Mexican airline and hopes to stay competitive when Aeromexico renews its fleet, currently made up entirely of Boeing planes.
Enrique Beltranena, Volaris CEO, said in a statement, “The arrival of the new A320s is great news not only for Volaris and the environment...[but] also for all of our customers." The fleet of latest generation Volaris planes are not only top-of-the-line, but also promote sustainability and environmental responsibility among airline carriers: “The new airplanes will let us strengthen our low price strategy to benefit a larger number of Mexicans, while their fuel efficiency and reliability will allow our fleet, the youngest in the country, to be even more friendly to the Mexican skies."
Recently Mexican President Calderón, in conjunction with the rest of the Mexican government, introduced the development of a new program set to provide loan opportunities for students in need of financial assistance with aspirations of pursuing higher education in Mexico. The Mexican government has announced that they will give out more than 3… billion pesos, or around $219 million in loans a year to students. President Calderón, in explaining the importance of pursuing higher education in Mexico, stated that this action “implies an economic power that a good part of the population lacks.”
This new financial aid program is similar to those in the U.S., Chile, and Brazil. Mexico hopes that the development of this loan program will lead to a certain “democratization” of higher education. Students receiving loans will additionally have a six-month grace period after the completion of their education to begin paying back their loans to the Government development bank Nafinsa. In order to qualify for a loan, students must continue maintaining good grades and have a reliable family member consent to co-sign the loan. This program is an important step for the Mexican population as a whole in terms of giving all individuals the chance to pursue higher education regardless of their financial situation.
ICANN, an Internet governing organisation founded in 1998, has named Rodrigo de la Parra as its vice president for Latin America and Nigel Hickson as its vice president for Europe. …
Rodrigo de la Parra
De la Parra was previously regional liaison for Latin America for the company and is a respected telecommunications expert. Before joining ICANN, De la Parra was director general of prospective regulation and director general for international cooperation of Mexico’s Federal Commission of Telecommunications. He has also served as the Mexican representative to ICANN’s Governmental Advisory Committee and a member of the Consultative Committee of NIC.mx, Mexico’s ccTLD.
With more than 30 years of regulatory and other experience, Hickson has held various posts with the governments of the United Kingdom and Bermuda. Prior to joining ICANN, Hickson led teams at the UK’s Department of Culture, Media and Sport and Department of Business, Innovation and Skills on global ICT policy and regulatory issues.
Mexico has seen a steady increase in demand for electricity over the past decade, which has in turn, created a need for the expansion of power companies. Over the next ten years, Mexico’s Energy Secretariat predicts that electricity consumption will grow by 3.3 percent.
One such company jumping in to fill this demand is POWERVAR Mexico, a subsidiary of North American based POWERVAR, Inc., which is responsible for all sales and services in Mexico. The worldwide provider of power protection solutions recently announced that it is opening a new office location in Mexico City, Mexico, to address the nation’s growing need for power.
The investment in Mexico City coincides with the company’s desire to expand its global reach.
"We have high expectations for the success of our new operation in Mexico. Our strategic approach is to place sales and support facilities where our OEM partners conduct business, just as we have in other regions of the world. POWERVAR is prepared to meet the growing demands and global expansion of our business partners," said Tom Gornick, POWERVAR's Vice President of Sales.
Last year, Mexico produced a record number of cars and light trucks.
According to the Mexican Automobile Industry Association (AMIA), 2011 production increased 13% from 2010, resulting in 2.56 million units. Additionally, 2.14 million vehicles were exported; this was the first time auto exports hit the 2 million mark, and was a 15% increase from 2010. Domestic auto sales grew 10% to 905,886 units in 2011, though they still remained below the level set in 2007, prior to the recession.
In December 2011, auto production grew 5%, auto exports rose 16%, and domestic sales grew 10%, when compared with totals from December 2010.
Eduardo Solis, the head of AMIA, said that automotive production in 2012 could be similar to 2011. There are warning signs, however, that economic trends in Europe could affect Mexico’s key export markets in the United States and South America. This could affect Mexico’s overall automotive output.
Denso Corporation plans to build a new plant in Silao, Guanajuato, Mexico, said Hikaru Sugi, President of Denso International America. Sugi made the announcement at the North American International Auto Show in Detroit, Michigan.
The plant will manufacture heating, ventilation and air conditioning (HVAC) units with the Denso Corporation, hoping to produce additional products at this site in the future. The $57 million facility will employ about 400 people when it opens in October 2013.
This will be the third plant for DNMX, which also has a facility in Guadalupe City, Nuevo Leon.
Denso currently manufactures a variety of automotive products at its two existing plants, including instrument clusters, climate control panels, and system control components such as variable cam timing and oil control valves.
The announcement comes shortly after the company said it will open a research and development office in the Silicon Valley of California, and expands its operations in Southfield to house labs for battery cooling and in-dash technology engineering.
Jorge Arce has been appointed Chief Country Officer for Deutsche Bank Mexico where he has most recently lead the bank’s Private Wealth Management business as Head of Northern Latin America. Arce, a part of Deutsche Bank for 16 years, will be based in Mexico City and will report to the CEO of Deutsche… Bank Latin America, Bernardo Parnes.
"Jorge has a unique understanding of clients' needs and has been instrumental in developing strong client relationships in Mexico," says Parnes. “Mexico remains a key growth area for Deutsche Bank Americas and is a cornerstone of our strategy in Latin America. I am confident that the momentum we have developed in Mexico over the past several years will continue under Jorge's leadership.”
With experience doing business in Mexico on behalf of Deutsche Bank, Arce says, "I look forward to working with my colleagues to further strengthen the Deutsche Bank platform and maintain the excellent level of service that we deliver to our clients in Mexico."
Deutsche Bank has been established in Mexico for more than 50 years. In 2000, Deutsche Bank obtained a local banking license, and Deutsche Bank Mexico, S.A. - Institución de Banca Multiple, began operations.