Tequila Mexico China

Francisco N. González Díaz of ProMexico, the Consul General of Mexico in Shanghai Rolando Garcia Alonso and Milton Alatorre of the Tequila Regulatory Council in Asia heralded the arrival of the first 70,000 bottles of 100 percent agave tequila in China. Ten different brands of 100 percent agave tequila have been shipped to China. González noted  that thanks to the efforts of the industry, 100 percent agave tequila can be found in more than 100 countries. The delivery ceremony took place at Bund 27, the House of Roosevelt in Shanghai, China. 

Thanks to a June 2013 agreement signed by Mexican President Enrique Peña Nieto and Chinese President Xi Jinping, China will reduce trade barriers on the sale and import of Mexican tequila. Mexico is expected to export 10 million liters of tequila to China over the next 5 years. ProMexico estimated global Mexican tequila exports last year at over $860 million, or 300 liters per minute.

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Mexico sees its First Open-Source Cell Phone Network

To connect with the rest of the world, the residents of the Zapotec village of Talea de Castro in Southern Mexico once endured long lines, large distances and high fees to make a phone call. Thanks to simple radio receivers, a laptop and relatively inexpensive internet technologies, the villagers now have access to their own “mini-telecom company” that reduces fees significantly and can handle 11 cell phone calls at a time.

More than 720 residents have signed up to use the new system, which uses a small antenna to capture calls with a “generic” radio. The system is similar to “a cell phone version of Skype.” Local calls are free and every subscriber has a distinct mobile number.

Backers of this impactful improvement, such as Rhizomatica, hope this plan can bring connections to thousands of other small, isolated villages around the world, where roughly 700 million people lack affordable cell service.

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President_Enrique_Pena _Nieto_launches_National_Entrepreneur_Week_Mexico

Mexican President Enrique Peña Nieto kicked off National Entrepreneur Week in Mexico at Centro Banamex in Mexico City. President Peña Nieto was joined at the event by Secretary of the Economy Ildefonso Guajardo and Henry Jacob Rocha, predident of the Instituto Nacional del Emprendedor (National Instute of Entrepreneurship). 

National Entrepreneur Week is a joint project of the government of Mexico, the Secretariat of the Economy and the National Institute of Entrepreneurship. The week is focused on efforts to help small and medium-sized enterprises with access to capital and incentive programs to help Mexican entrepreneurs open, modernize and increase the productivity of their businesses. National Entrepreneur Week will feature more than 200 conferences and 300 exhibits on entrepreneurship. These events will stress such themes as financial literacy, digital innovation, networking and strategic competitiveness.

The role of small and medium-sized enterprises (SMEs) was a key topic of discussion at the 2012 B-20 summit in Los Cabos. At the time, business leaders stressed the need for SMEs to access and benefit from global value chains, and for governments to include private business in the economic development strategy-making process.

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Pirelli_Emphaszing_Green_Initiatives_Mexico

According to Pirelli & C. S.p.A.’s “Industrial Plan 2011-2013 and Vision to 2015,” the company will launch a new plant in Mexico to serve the North American Free Trade Agreement (NAFTA) area, with an initial investment of $210 million.

“In 2015, around 60% of Pirelli’s production capacity will consist of plant and machinery launched in 2005 or after, and therefore less than 10 years old,” the plan states. Pirelli invested $200 million in building the plant, where production was inaugurated on May 31, 2012, and surpassed 1 million units on June 18.

Pirelli Tyre S.p.A. has detailed plans to put the second half of its $400 million investment in the company’s Silao, Mexico, factory toward so-called “green performance” tire production. Mexico’s president Enrique Peña Nieto met with a delegation of Pirelli’s top management, who illustrated the progress of the company’s investment in the country at the announcement.

Pirelli’s $400 million Silao investment forms part of the company’s strategic industrial plan presented in November 2011; the first $200 million has already been spent and investment of the remaining $200 million, to be completed by 2017, is already underway. The initial project and the new project in Mexico will create 1,400 direct jobs and about 400 indirect jobs in the period to 2017.

Green Performance involves a range of research, development and process technologies that are designed to deliver a "green tire that performs up to Pirelli's performance standards," according to Tom Gravelos, CEO of Pirelli Neumaticos S.A. in Mexico.

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Silao
Trains_Planes_Automobiles_Mexico_Rail_Freight

Since 2009, Mexican trains have grown to haul 14% of the nearly $500 billion worth of goods that cross the US-Mexico border. As the cargo loads increase, the Mexican rail network has become competitive with its North American neighbors. As of 2013, Mexico’s train network has 26% of the North American rail market share compared to 20% 16 years ago. Mexico’s network is fully integrated with the North American system, allowing customers to move products seamlessly from Monterrey to Montreal. By 2023, these numbers could rise to 35%--just below US levels. "Our growth is limited by the size of the area," Ferrovalle's director, Erich Wetzel said. "We calculate that by 2017, we'll be near capacity here."

The increase in train traffic is due in part to the growth of Mexican export industries. As a result of the auto investments by companies such as Nissan, Mazda and Honda, cars rose from 4% of Mexican railway cargo to 16% between 2011 and 2013.

The rise in train cargo is, in turn, further spurring investment in Mexican infrastructure. One corporation, Grupo Mexico, will in invest a record $536 million in its rail business—up 10% from the usual spending levels.

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GM_Invest_$691_Million_Expand_Production_Mexico

General Motors Co. (GM) announced that it will spend $691 million to build and expand its factories in Mexico. According to the Mexican Auto Industry Association, GM has the second largest vehicle output in Mexico, behind Nissan. Mexico is the eighth largest producer of vehicles in the world.

Of the $691 million, $211 million will be spent on the expansion of Toluca, where GM builds V8 and four-cylinder engines, $349 million for the new transmission plant in Silao; $131 million to expand its San Luis Potosi Complex transmission plant and to build lighter and smoother transmissions with better fuel economy.

“General Motors is about to reach 78 years in Mexico and we celebrate it with this new investment, which means more employment and development opportunities for the regions,” said GM Mexico President Ernest Hernandez. GM spokeswoman Katie McBride said the investments will include adding jobs, but the numbers won’t be announced until the projects are further along.

GM also said its in-vehicle OnStar service that connects drivers to live operators for directions or emergency help is now available on select cars in Mexico. GM previously said it planned to expand OnStar into Mexico, which has more than 6.5 million subscribers in the United States, Canada and China.

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Toluca
Mexico Aviation

Mexico is determined to become one of the world’s top ten aviation suppliers, according to the British newspaper The Guardian. The state of Querétaro, located northwest of Mexico City, holds an aerospace park where Delta Air Lines, Aeroméxico, Bombardier, Eurocopter, and Safran are among the firms with existing or upcoming investments.

"Our country is attracting the biggest share of aerospace investment worldwide," says Carlos Bello Rocha, head of Mexico's Aerospace Industry Federation (Femia). About 20 new projects are expected this year, worth $1.3 billion. Aviation exports doubled between 2009 and 2012 to reach $5.4bn.

Canada’s Bombardier was the first overseas firm to build a $200 million factory, transferring production from Ireland and Japan. Since then it has spent an additional $300 million in Mexico.

The latest arrival of aerospace manufacturing firms to Mexico is Eurocopter in February 2013, opening a facility that will employ 200 people by next year. 

Mexico’s Femia forecasts that there will be 450 companies working in this field by 2020, representing 110,000 jobs and $12 billion in export sales. 

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Queretaro
Mexico Smart Phone

In the past decade; Mexico’s technology sector has grown three times faster than the global average. Due in large part to its close proximity to the United States, three- quarters of Mexico’s tech services are focused on the U.S. and large global companies such as Wal-Mart and Coca Cola.

Compatible time zones and a growing Hispanic market within the United States make Mexico an opportune business partner. Market growth is continually fueled by demands from the U.S.

The ability to become a world leader is due in part to the IT support and services, as well as the database software of growing companies such as Publish 88.

There are numerous obstacles that must be overcome to allow Mexico's small businesses to achieve and take the world by storm. These include a more small business oriented banking system, innovation nurturing of a hands-on idea center, and the drive to keep the engineers out of the manufacturing sector. All of these coupled with a country to support the growing entrepreneurs will increase Mexico's place in the global market.

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Mexico China Ferrari

During a discussion held between Burgess Yachts CEO Jonathan Beckett and Gotham Jets CEO Gianpaolo De Felice, Ferrari North America CEO Marco Mattiacci made a bold statement saying that “Mexico is the next China.”

Mexico’s future is shaping up to make it the next contender in automotive production. This increase in production is due in some part to Ferrari with its upcoming production of La Ferrari as well as the entire automotive industry. Ferrari North America CEO Marco Mattiacci wants to reduce the production of Ferraris from last years’ numbers of 7,318 to less than 7,000 to preserve the brand’s exclusivity. While Ferrari production may be lessening because of exclusivity, other brands are having the reverse effect, pushing Mexico’s production to an all time high.

Production in Mexico is anticipated to steadily grow over the next 13 years due to increased wealth creation, desire for industry, and international investments. Mexico’s status has given indicators that manufacturing is indeed increasing due to exceptional quality of education for workers, and governmental reform. The future of Mexico’s automotive industry is looking promising!

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Mexico_Large_Millimeter_Telescope_Business

After detecting its first light spectrum from a distant galaxy in 2011, Mexico’s Large Millimeter Telescope (LMT) is set to begin its first scientific observation season and gather the data for which it was constructed: how stars, galaxies, and planets are formed.

As the world’s largest single dish, steerable, millimeter-wavelength telescope, the LMT is located in the central Mexican state of Puebla at the summit of Sierra Negra, a dormant volcano nearly three miles in height.

Despite its location and 70% of the LMT’s funding coming from Mexico, the astronomical initiative is actually a partnership between Mexico’s National Institute of Astrophysics, Optics, and Electronics (INAOE) and the University of Massachusetts and Amherst College in the United States.

Once the telescope was constructed, building a staff to man the laboratory became the main challenge for David Hughes, the director of the LMT. A challenge indeed as Mexico’s astronomy community was centered on optical and infrared telescopes prior to the LMT.

Hughes was successful in this endeavor, however, as the group of M.Sc. and Ph D. students he trained not only helped train other members of the Mexican community, but they have also gone forth and taught others – forming the next generation of LMT scientists.

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Automakers_Mexico_Steel_Industry_Mexican_Automotive

The steel industry in Mexico is growing as a result of the boom in Mexican automotive manufacturing. To keep up with demand for steel, Mexican steelmakers are expected to invest almost $3 billion on new and improved factories.

As we’ve reported before, Mexico’s automobile production has grown incredibly in the past few years; rising to nearly 6 percent of Mexico’s GDP. Mexico is in prime position to take over a very large portion of the market for cars due to its geographical location. Mexico has become a magnet for automakers seeking access to North and South American markets and other regions. Mexico has trade agreements with more than 40 countries, opening markets for automakers and steelmakers. In fact, Mazda plans to open an $800 million factory, expected to open in 2014. Auto exports to an expected to rise to 4 million vehicles by 2017, according to The Mexican Automobile Industry Association.

New trade deals and low-cost labor have made Mexico a profitable base for car production. It's also attracting other parts of the auto-supply chain, from steel mills to brake makers, as the "made in Mexico" trend grows. “While Mexico is the world’s 13th-largest maker of steel overall, its production of automotive-grade metal that has been galvanized, or coated in zinc to prevent rust, remains low, said Oscar Albin, president of the National Autoparts Industry in Mexico City.”

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Mexico surpasses Brazil as an investment opportunity

Mexico has become the new hotspot for investors seeking opportunities in Latin America. The new president of Mexico, Enrique Peña Nieto, has been pushing for economic change, which has encouraged many investors put cash in to Mexico. A recent CNBC article quoted a research director at Frontier Strategy Group as saying, “Brazil became a lot less attractive in the last year and a half. Mexico has definitely come up as a priority."

Mexican companies have proven themselves to have a better profit profile than those within Brazil, with higher profitability and better margins. Brazil has the largest economy within Latin America, but it has been fighting against high inflation, leaving investors worried that over a potentially low-growth environment. Compared to Mexico’s quickly growing economy, Brazil’s grew only 1 percent last year.

In the past year, iShares MSCI Mexico Capped exchange-traded fund grew over 17 percent. This is compared to a fund trailing Brazil, iShares MSCI Brazil Capped Index Fund, which depleted by over 15 percent.

Key fiscal, financial and energy reforms are expected in Mexico this year, and this comprehensive reform process will only deliver higher growth capacity for Mexico. Experts predict its economy will expand approximately 4.5 percent this year.

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Mexico_Aerospace_Industry_Manufacturers

Adding to their strong presence in the electronics and automobile industries, Mexico is a major player in the worldwide aerospace industry. In a relatively short time, this country of 113 million people has gone from a minor parts supplier to a major partner of several large aviation companies by its attractive offerings of lower-costs, a free-trade system, and skilled, motivated workers. Mexico can thank the large amount of foreign direct investment they have received in recent years for solidifying their place in the highly competitive, fast-growing aerospace industry.

Strong cooperation between governments, universities, and private sectors in promotion of the capabilities of the Mexican aerospace sector has incentivized foreign manufacturers to increase their operations, not only in manufacturing but also in establishing an engineering base. For instance, Mexico, Baja CA, Chihuahua, Nuevo Leon, Sonora and Queretaro have larger aerospace clusters.

“They make it easy for you to do business down here,” says John Gardner, strategic program manager at Kaman Aerostructures, another newcomer in Chihuahua. “They provide a 'soft landing,' to get a quick startup—a good startup. We got a lot of support up front and afterward.”

Aerospace investors in Mexico also cite the country’s geographic location, open trade policies, political and economic stability as their main reason for moving manufacturing south of the border. Such stability has been particularly attractive to companies fearful of their intellectual property security and swayed them away from such countries as China.

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Mexican_Based_VUHL_Builds_Supercar

Ever since the Mexican Mastretta sports car went viral, another Mexican firm announced its intentions to make a super sports car.

Pronounced ‘vool’, the VUHL is an abbreviation created from the phrase, “Vehicle of Ultra-lightweight and High-performance”. Vuhl, a new highly specialized supercar manufacturer, will launch onto the world stage when it unveils its first production car, the Vuhl 05, at this year’s Goodwood Festival of Speed.

According to the company, the Vuhl 05 is a “road-legal lightweight supercar that’s been precision-engineered for the track and endowed with exhilarating performance.” A brand started by brothers Iker and Guillermo Echeverria, whose Mexican/American design agency came up with the 05’s look. Vuhl will produce its chassis and complete final assembly in Mexico City after receiving lightweight bodies fabricated in Canada before vehicle handling is optimized in the UK.

No other details about VŪHL’s 05 have been released, although we know it will feature components sourced from Magna Steyr, Multimatic and Ford. When the VUHL 05 supercar break lights, it will be very interesting to see if this vehicle will revise the way the world view Mexico’s auto industry.

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Eurocopter_Mexico_Inauguration_Production_Center

Expanding its Mexican investment, French-German-Spanish helicopter manufacturer, Eurocopter, opened a new, 12,000 square meter manufacturing plant in Queretaro. The plant will create approximately 200 specialized jobs by mid-2014, adding to their current 50 employee workforce.

Built next door to Canadian manufacturer Bombardier, Eurocopter’s plant joins a long list of American and European aviation manufacturers who use the nearby aeronautical university to staff their respective factories. For Eurocopter, their $100 million plant is set to produce high-technology structural metallic components for both Airbus and their own Ecureil helicopters.

Despite this brand new investment, Eurocopter is not a new presence in Mexico, but rather has been a fixture in the country for over 30 years. In that time they have asserted 50% of the Mexican helicopter market, and host a fleet of over 450 helicopters operating across Central America, the Caribbean, and northern South America, in addition to Mexico. So confident is the company in their continued success abroad that they plan to invest up to $550 million in Mexico over the next few years.

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