SuKarne, a subsidiary of Grupo Viz, plans to invest $110 million to establish the largest beef production and processing complex in Durango, Mexico, as a part of its plan to strengthen its presence in the country. …
The project will be carried out in two phases, with the first phase involving the setting up of a meat processing plant with an investment of $40m followed by a feed yard for 70,000 head of cattle in second phase, which will double the company's existing capacity.
According to the company, the plant will feature cutting edge technology and will adhere to the international sanitary standards.
For the project, the company has entered into a partnership with regional producers, who will jointly invest about $300 million.
The group's main shareholder and chairman of the board Jesus Vizcarra Calderon said that agricultural sector can become an even more important driver of the national economy.
"With this project we are taking a step towards bringing together cattlemen, agricultural suppliers, government and SuKarne in this effort, so that together we can transform this region into the Animal Protein Capital of our country," Calderon added.
The complex is expected to create about 1,200 jobs and 6,000 indirect jobs, in addition to the 680 jobs required for the construction.
SuKarne, based in Culiacan, Mexico, supplies meat, beef and poultry products throughout Mexico and its products are exported to Japan, the US, Russia and Hong Kong, among others.
In May 2011, the company announced its plan to invest $100 million over a period of 18 months to build a livestock factory in Nicaragua, which will feature ten feed storage centers for direct feeding of livestock, a permanent inventory of 50,000 head of cattle, a slaughterhouse and deboning unit.
The creation of a new Technological Innovation Park in Esperanza, Puebla has recently been announced by Baltic Group, a company which invests in trade, biofuels, infrastructure and construction, among other industrial sectors. With an investment of 145 million dollars, the state-of-the-art… technology park, focused on innovation, will generate nearly 400 direct jobs and 3,500 indirect jobs.
The Technological Innovation Park currently is host to eight companies that use the facilities with the guarrantee of zero CO2 emissions and recycle water utilized on a daily basis. For this and other reasons, Mexico’s Ministry of Economy recognizes the project and facility as a technological innovation.
An example of the usage of the facilities is the generation of electricity from sorghum grain, which is purchased from the producers of the grain in three areas: Huastecas, el Itsmo and Juchitan, Oaxaca. These regions supply 20,000 tons a year, reviving more than 15 hectares of crops. After the second quarter, the new Tecnological Innovation Park in Puebla will be incorporating companies engaged in the manufacturing of different feed foods from the practice of grain processing.
While a number of U.S. companies host their manufacturing operations in China, Mexico is becoming a more desirable location for the production of goods. In fact, shipping containers entering the Los Angeles and Long Beach ports (with cargo largely from Asia) declined by 0.2 percent last year,… whereas trains and trucks carried 8.7 percent more freight across the Mexico-U.S. border in the first eleven months of 2011, compared to 2010.
Transportation and trucking companies are reaping the rewards of increased manufacturing in Mexico, with a few having the most to gain. For example, Kansas City Southern Railway's Mexican controls both a rail system and a railroad bridge in Mexico, with the bridge occupying a key area spanning the Rio Grande into Laredo, Texas. Additionally, Union Pacific has 26 percent stake in Ferromex, a Mexican railway that services six border crossings. Shares and earnings of both companies have surged over the past year.
However, despite this, Mexico is the biggest winner of all, with increased manufacturing and trade helping to revive the nation’s economy.
Jorge Lopez, Regional Director for ProMexico North America, describes the rising middle class in Mexico and the increase in quality of life for the general population in the country.
In an interview with MexicoToday, the Regional Director for ProMexico North America, Jorge Lopez, talks about the Creative Services industry in Mexico and what types of companies he envisions succeeding in the near future.
The economy of Mexico continues to grow. Mexico recorded $19.4 billion in foreign direct investment in 2011, which is an increase of 9.7 percent from $17.7 billion in 2010, the country’s Ministry of the Economy said Feb. 20.
Mexico's main economic partner, the United States, was the top foreign investor, contributing 55 percent of all foreign investment.
Aside from the United States, foreign direct investment from Spain made up 15 percent of foreign investment in Mexico. The Netherlands invested 6.7 percent and Switzerland at 6.3 percent.
Mexico’s manufacturing sector received 44.1 percent of foreign direct investment. Financial services and insurance received 18 percent, while commerce received 9.5 percent of foreign investment.
Mexico received $17.72 billion in foreign investment in 2010, an increase of 16.6 percent from the previous year. The economy of Mexico grew 3.9 percent in 2011 and is predicted to grow between 3.5 and 4.0 percent in 2012.
Regional Director for ProMexico, Jorge Lopez, discusses factors that make Mexico very competitive in the automobile industry as well as the attractiveness of investing in Mexico's auto industry. He mentions that it's no surprise that Mexico ranks among the top 10 auto producers and exporters in the… world. There have been a slew of top automakers investing in Mexico, for example Nissan recently invested US $1.9 billion in the industry.
The aerospace industry has a long history in Mexico. As ProMexico's Regional Director for North America, Jorge Lopez describes, after the NAFTA Free Trade Agreement, Mexico became a hub for aerospace science in the region. Well-known for its aerospace components and aerospace engineering, Mexico has… established itself as a leader for new business opportunities in the industry within North America and around the world.
The North American Free Trade Agreement (NAFTA) was implemented on January 1, 1994 in hope of removing many barriers of trade and investment between Mexico, Canada, and the United States. The NAFTA agreement, in its creation, was expected to create positive trade relationships between the three countries while making sure they… adhere to certain economic rules and regulations. The establishment of NAFTA has had many positive effects on the market economy of Mexico, its diplomatic relations with other countries, and the standards of living in Mexico. In addition, millions of jobs have been created in Mexico as a result of the implementation of the NAFTA agreement 18 years ago.
The founder of Soluciones Estratégicas and former Minister of Trade and Industry for Mexico, Dr. Herminio Blanco stated recently in a conference at The University of Texas at El Paso, “Never did we expect during the negotiations the success that NAFTA has had.” He went on to say, “Mexico has been able to attract $160 billion. Never would we have thought that possible.” NAFTA has created the ability to import and export goods between the three countries in a positive and effective way while helping spur jobs through this economic process. The General Manager for the El Paso Saddleblanket Company, Luke Wells explained his company’s relationship with Mexico. He acknowledged, “We’ve been in the import/export business for over 42 years, since 1970 and we’ve always had a wonderful relationship with Mexico.” He went on to claim, “What NAFTA has done is just really to streamline the process and made it a lot more accessible.”
Volkswagen Group, the world renowned German automobile manufacturing company, has recently opened a new center in Puebla, Mexico, the second largest city in Mexico. Volkswagen now owns the Lamborghini, the Audi, the Bentley, and the Bugatti. The new Volkswagen center is called the Volkswagen Group Sales & Service… Academy. Volkswagen has invested $6.7 million in the latest Volkswagen center in Mexico that will act as a training facility for the company. The new Volkswagen Group Sales & Service Academy Puebla training center will provide instructional services to Volkswagen staff, including managers and technicians.
In the long run, it will help improve Volkswagen’s global customer service abilities and overall business quality. Hans-Heiner Tüting, the Executive Vice President of Volkswagen Mexico’s marketing and sales, stated that customer service is one of the company’s main priorities. Volkswagen is completely dedicated to giving customers the attention, respect, and services they deserve. This new expansion for Volkswagen will help sustain their spot as one of the leading carmakers in the world.
The Uruachic district has showed the possibility to become an important gold-silver locality in northwestern Mexico, following Fresnillo PLC's newly-discovered Orisyvo gold deposit of 9.2 million ounces. This locality has attracted the interest of several gold exploration firms, apart from Comstock.
For the 2012 drilling program, the company has built and renovated about 16 km (approximately 10 miles) of access roads. G4 drilling of Hermosillo, Mexico was engaged to perform Comstock’s 2012 drilling program.
The company’s drilling program will primarily concentrate on bulk tonnage, low-grade oxidized gold mineralization. The major part of the drilling will be carried out on the Northeast zone, where low-grade, bulk tonnage gold mineralization was identified in drill holes. The oxidized gold mineralization exists in modified volcanics contiguous to quartz veins bearing higher grade gold. The drill program will also focus on high-grade, gold-silver and base metals veins. The company had conducted a comprehensive rock, soil and silt geochemical surveys, which discovered new regions of zinc, silver, lead and gold mineralization during a 2007/2008 exploration program.
Comstock Metals’ President and CEO Rasool Mohammad said the company concentrates on exploring mineral localities, which provide tremendous opportunities to discover gold-silver deposits. The company will drill its two key assets, which include QV claims and Corona Gold-Silver project in the White Gold locality in the Yukon.
The Japanese automotive manufacturer of Yorozu plans to invest MXP$900 million (around US$70 million) to build a new plant at the State of… Guanajuato, in central Mexico.
According to a recent press release, Mexican subsidiary of Yorozu is expected to be in full operation by 2015, generating 230 jobs, in addition to sales close to MXP$800 million (US$62.5 million). The new factory in Guanajuato will be devoted to producing shock absorbers for vehicles.
This company, based in Yokohama (a few miles from Tokyo) pointed-out that the construction of the new plant responds to an increased demand in automotive manufacturing in Mexico. Yorozu already has another subsidiary in Aguascalientes.
The announcement by Yorozu comes just over a month after Japanese auto parts manufacturer DENSO said it planned to build a plant to produce air conditioning equipment in Guanajuato. DENSO Mexico, based in the northern city of Apodaca, plans to start constructing a $57 million new factory in March in Silao, a city in Guanajuato.
High demand for sorghum production has proven to be a positive phenomenon for Mexico. Mexico purchases around 78 million bushels of sorghum from the United States each year, usually in the Rio Grande Valley area. The manager of International Operations for the U.S. Grains Council, Kevin Roepke stated,… “Mexico is the predominant price driver for U.S. sorghum.” He went on to say, “In any given year, Mexico alone accounts for roughly 25 percent to 30 percent of U.S. sorghum exports.”
This climatic state of affairs in the U.S. will help strengthen the trade relationship between the U.S. and Mexico. The trade of grain sorghum is primarily found in U.S. exports to Mexico. Mexican grain markets have maintained a consistent demand for the sorghum crop from the U.S. because of their reliance on the crop to feed livestock. John Miller from Southwest Ag Consulting explained, “The demand for sorghum by Mexico should increase given that the U.S. market is coming off a severe drought in 2011, even despite some recent rains that could boost production. “
HELLA, the German automotive part supplier plans to break ground on a new 215,000-square-foot facility to produce automotive headlamps and rear lighting systems in Irapuato, Mexico, later this spring. …
Located in the state of Guanajuato, the new plant is scheduled to open in June 2013 with an annual capacity of approximately 1.2 million headlamps and 1.5 million rear combination lamps. HELLA plans to invest more than $97 million in the new facility.
The company also is expanding its facilities in Guadalajara, Mexico. A new 9,000-square-foot design and development center for lighting technology is expected to open this March. In addition, HELLA is scheduled to complete a 15,000-square-foot expansion of its Guadalajara manufacturing complex in June.
The new manufacturing facilities will increase HELLA’s annual production capacity in the Americas for headlamps from 3.7 million to 4.9 million. Production capacity for rear combination lamps will grow from 2.5 million to 4 million. HELLA currently has more than 2,500 employees in the Americas. Its new manufacturing and development center expansions are expected to add 800 new jobs by the end of 2014.
Mexico announced Coca-Cola Co.’s investment of over US$1 billion after meeting recently with Coca-Cola chief executive Muhtar Kent in Davos, Switzerland. Mr. Kent stated the investment is part of a five-year plan in which the company expects to invest a total of US$5 billion in Mexico. …
As part of the investment, Coca-Cola Co. plans to increase its number of workers by an estimated 800,000 additional jobs, which would be generated via the company's supply and distribution channels.
"Without a doubt, this important investment will boost our economy and will create more and better jobs for Mexican workers," a prominent Mexican official said.
Mexico is already home to Latin America's two largest bottlers of Coca-Cola brand products, Coca-Cola Femsa SAB and Arca Continental SAB, as well as juice brand Jugos del Valle, Coca-Cola's 14th best-selling brand ⎯ with annual sales above US$1 billion.
It has been cited recently that Mexico's growing economy, as well as the country’s expanding income and young population are the main factors attracting global corporations, especially those looking to tap into the consumer market.