Latin America economic thread

[E-195]

Brazil and Mexico are positioned among the two Latin American countries with the largest production of cast metals in the world, a position achieved despite the fact that during the covid-19 pandemic “the situation of the industry was very complicated”, said this Monday the director of Global Sales of the Mexican company Fundiciones Nardo, Jorge Vázquez Lujano.

In the case of Mexico, the sector is expected to grow by 3% by 2024, an increase that, according to Fundición de Metales en México, is due to the relocation of companies or “nearshoring”, as it has generated investments of US$1.8 billion for the sector, which is made up of 1,000 companies.

“Thanks to ‘nearshoring’, the foundry industry has reached its investment target of US$1.8 billion, which was planned for 2026, ahead of schedule, and an additional percentage of up to 50% is now projected,” said Bruno Jaramillo, general director of the Mexican Foundry Society (SMFAC), about Mexico.

Jaramillo also argued that “the foundry sector is the basis of the entire metal manufacturing production chain,” creating more than 65,000 direct jobs and another 205,000 indirect jobs in ferrous and non-ferrous products for “practically all manufacturing sectors in the country,” with the automotive sector standing out, which supplies 63% of manufacturing.

Qualified jobs and competitiveness
However, he warned that production has a 62% deficit in specialized personnel, referring to mechatronics engineers and technicians, which is why there is currently “an effort to create new specialist cadres for this sector.”

The deficit is present throughout the Latin American region, because women have been excluded from STEM careers, that is, those related to science, technology, engineering, and mathematics.

According to Vázquez, another factor that threatens manufacturing is competition in the market from countries such as China, Turkey, and India, as they are the ones that “have prices up to 30% lower than Mexicans.”

However, the director of Fundiciones Nardo raised the issue that delivery times for these destinations are on average six to eight months, while foundries in Mexico take approximately two months, which gives the American territory “a competitive advantage”. In this sense, he emphasized that, in order to continue promoting these advantages of the sector, it is important to generate global meetings such as FundiExpo, an event that will be attended by more than 350 companies from all over the world from October 16 to 18 in the Mexican capital.

Brasil e México se posicionam como principais produtores de metais da América Latina | Exame

Produção emprega quase 230 mil pessoas de cerca de 3.000 empresas que contribuem com 3,1% do PIB, diz CNI

exame.com

 

[E-195]

An annual production of 10 thousand silicon wafers is estimated and depending on the type of chips, between 500 and a thousand chips could be obtained
At the end of 2025 or beginning of 2026, the first chips could be manufactured in Mexico, according to the projections of the Mexican company QSM Semiconductores, which plans to install a plant with an investment of between 10 and 12 million dollars.

In it, it estimates an annual production of 10 thousand silicon wafers and depending on the type of chips, between 500 and a thousand chips could be obtained.

”We have visualized on the map that in December of this year or January of 2025 the first stone will be laid.”

”All of 2025 would take us to develop (the plant) and by the end of 2025 or beginning of 2026 we will be producing the first Mexican chip manufactured in national territory,” explained Alejandro Franco, general director of the company.


Currently, in Mexico only the design of the chips is carried out, so the country has to import them already finished for various industries.

In order not to disburse a large investment, the company decided to use legacy node technologies.

These are mature technologies that already had their research and development costs, that is, they are not the ones demanded by the tiny chips that go in a mobile device like an iPhone, but they are larger in size, but they are profitable in many industries, such as the medical, security, automotive and household appliance sectors, who expect to be their clients, he explained.

He is confident that over time an integrated chain of suppliers will be formed and that for the moment there will be no problem in importing inputs such as silicon wafers or different gases, which are currently brought from Asia, Germany and the US.

Preparan poner la primera fábrica de chips en México

$TextoEsc

vanguardia.com.mx

 

[Anants]

Thanks @E-195 for your reply. I appreciate that.

 

[E-195]

During 2023, 106,180 electric cars were assembled in Mexico, 36.3 percent more than the previous year, reported the Mexican Automotive Industry Association AMIA.






View: https://www.youtube.com/watch?v=VfVknHd4oPc


Ford produces the 150,000th Mustang Mach-E at its Cuautitlán Izcalli plant. Cuautitlán Izcalli, State of Mexico, November 30, 2022.Nov 30, 2022

https://media.ford.com/content/fordmedia/fna/mx/es/news/2022/11/30/ford-produce-la-unidad-150-000-de-mustang-mach-e-en-su-planta-de.html#:~:text=de%20Cuautitl%C3%A1n%20Izcalli-,Ford%20produce%20la%20unidad%20150%2C000%20de%20Mustang%20Mach%2DE,su%20planta%20de%20Cuautitl%C3%A1n%20Izcalli&text=Cuautitl%C3%A1n%20Izcalli%2C%20Estado%20de%20M%C3%A9xico%2C%2030%20de%20noviembre%20de%202022.

 

[E-195]

Why Tata Marcopolo is the safest buses in India?​

Tata Motors | Aug 17, 2018 10:13 am

Through the Joint Venture between Tata Motors (51%) and Marcopolo SA of Brazil (49%) which was signed in 2006, Tata Marcopolo Motors Limited (TMML) was established. Since then, Tata Motors has successfully entered the bus market and turned out be a trendsetter in the school bus segment.

Though they have been commonly used so far, school vans and auto rickshaws come with a lot of serious safety issues. To avoid such risks and mishaps, Tata school buses are outfitted with all kinds of advanced safety measures including option of GPS trackers, ITS systems and CCTV cameras for extra security of school children.

The Marcopolo partnership with Tata Motors has brought about a revolution in school bus safety standards. Tata Motors realized the fear of parents who entrusted the security of their children in the hands of the school transport staff. Standing by this commitment, Tata buses have proven to be the most reliable mode of school transport yet; providing safe journey for school children across the country.

School buses from Tata are available with a capacity of 23 seats to 56 seats in both AC and Non-AC variants. Also, the vehicles are instilled with diesel and CNG options and compatible to BS IV norms. The interiors of all Marcopolo school buses are molded in a way that minimizes injury to hyperactive children.

School buses of the past looked dull and boring and came with a notable lack of comfort. Over the years, the new age design and technology has transformed the appearance of school buses making them attractive and comfortable for the children. Today, Marcopolo buses stand out on the roads with their bright yellow chassis and stylish, international look. Children love the look and feel of their new buses, and parents are delighted with the safety they offer.

Why Tata Marcopolo is the safest buses in India? | Tata Motors Buses - India's Leading BS IV Buses & Coaches Manufacturer

Joint Venture between Tata Motors (51%) and Marcopolo SA of Brazil (49%), signed in 2006, Tata Marcopolo Motors Limited (TMML) was established.

www.buses.tatamotors.com

 

[E-195]

Bimbo pressed deeper into India with 2021 acquisitions​

Source: Modern Foods
02.28.2022
By Josh Sosland
MEXICO CITY — Enumerating corporate highlights of 2021, Grupo Bimbo SAB de CV said it had completed six acquisitions during the year.

Perhaps the largest area of expansion for the company last year was in India, where Grupo Bimbo made two acquisitions. The first, was Modern Foods, the market leader in South India. The second was Kitty Bread, the second largest baking company in northern India.

Bimbo pressed deeper into India with 2021 acquisitions

Made two US specialty acquisitions.

www.bakingbusiness.com

India's Bread Industry Poised for Change as Bimbo Enters the Market​

Grupo Bimbo, the Mexico-based business that is the world's largest bakery products group, has moved into a new emerging market. Bimbo has muscled its way into India with the acquisition of a majority stake in local packaged bread group Ready Roti India. Logistical and supply chain issues make India's bakery industry challenging but some market watchers expect Bimbo's move to be followed by other multinationals attracted by the industry's growth.

India bread industry believes Bimbo’s entry could spark more deals

Grupo Bimbo, the Mexico-based business that is the world's largest bakery products group, has moved into a new emerging market. Bimbo has muscled its way into India with the acquisition of a majority stake in local packaged bread group Ready Roti India. Logistical and supply chain issues make...

finance.yahoo.com

Mahindra & Mahindra announced that the company currently operates in Mexico through various channels including the distributor channel wherein it continues to operate, sell and service its products including tractors and other farm machinery. The company's sale of tractors in Mexico has increased by CAGR of 41% over the last 3 years ending FY 2023.
The company, through its wholly owned subsidiary Mahindra USA Inc. (MUSA) has a step-down subsidiary Mahindra Mexico S. De. R. L. (Mahindra Mexico) which has been non-operating for over two years. As a part of the organisational structure simplification, Mahindra Mexico had filed for voluntary liquidation

https://www.business-standard.com/markets/capital-market-news/mahindra-mahindra-announces-cessation-of-non-operating-subsidiary-mahindra-mexico-124032800430_1.html

 

[E-195]

Chinese automaker Chirey Group is restructuring its operations in Mexico to better position its brands in a competitive market. The company plans to consolidate its four brands—Chirey, OMODA, JAECOO, and EXEED—under a unified commercial strategy.

This strategic move is in response to declining sales, with the group recording 16,604 vehicle sales in Mexico from January to July 2024, a decrease of 25.9% compared to the same period in 2023, according to Mexico's National Institute of Statistics and Geography (INEGI).

"We are focusing on consolidating our brands in key locations where it makes business sense, which will allow us to leverage our strengths," explained José Ángel Sánchez, Vice President, Chirey, to Milenio.

Chirey plans to expand its dealership network, aiming to establish 80 Chirey dealerships, 70 OMODA and JAECOO dealerships, and 30 EXEED dealerships across the country. While these numbers remain consistent with previous projections, the potential for brand-sharing within dealership spaces is expected to make products more accessible to customers. Sánchez emphasized, "Our adaptability and brand presence in strategic locations will be a major strength in offering a wide range of products."

In addition, Chirey is integrating its after-sales services, allowing customers of any Chirey Group brand to service their vehicles at any of the group’s dealerships. This initiative aims to enhance customer access and satisfaction.

This restructuring comes at a time when Chirey faces significant competition from both established brands and new entrants in the Mexican market. Gabriel Ríos, Vice President of Product, OMODA, stated, "We believe that our brand consolidation strategy will be instrumental in achieving our goals."

Since entering the Mexican market in 2022, Chirey has considered establishing a manufacturing plant in the country. Currently, the company operates a Parts Distribution Center in Tepozotlán, State of Mexico, which houses an inventory of up to 600,000 parts and employs more than 130 technicians. Chirey has also partnered with DHL to enhance its logistics capabilities, a collaboration that began in March 2024.

As part of its product strategy, Chirey Mexico offers a diverse range of vehicles, including the Arrizo 8 sedan, Omoda O5 and O5 GT, and SUVs such as the Jaecoo 7, Omoda C5, and the Tiggo series, which includes the Tiggo 2 Pro, 4 Pro, 7 Pro, 8 Pro, and the hybrid 8 Pro Max. The official launch of the EXEED brand in Mexico is anticipated in the coming weeks, with further product portfolio expansion expected thereafter.

Chirey Group Restructures Mexico Operations as Sales Decline

Chirey Group is restructuring its operations in Mexico to better position its brands following a slump in sales.

mexicobusiness.news

 

[E-195]

Tegucigalpa, Apr 3 (Prensa Latina) Honduras can close 2024 with good economic performance, thanks to indicators such as a Gross Domestic Product (GDP) growth of more than 3.5 percent and the inflationary decline to five points, official sources project today.
April 3, 2024 | 13:37
According to the country's Central Bank (BCH), these forecasts are derived from the expected dynamism in private consumption, the recovery of exports and the boost to public-private investment in areas such as textile manufacturing and the production of food, agricultural machinery and minerals.

Another important element will be greater execution of construction projects by the private sector after having better financial conditions and the three percent increase in the flow of family remittances, consolidated as one of the main sources of income for households and the collection of foreign currency.

Specifically, in this last indicator, the forecast is that it will generate an inflow of nine thousand 518 million dollars, that is, 276 million dollars more compared to 2023.

Regarding inflation, the BCH predicts a level of five percent, but warned about the persistent uncertainty due to internal factors such as variations in supply and among the external factors will be the impact of the Russia-Ukraine conflict and the Middle East on the rise in the price of food, fuel, maritime transport and supply chains.

Likewise, it called for taking into account the impact on the hydrocarbon market of the United States sanctions against Venezuela and the possible effects on agriculture due to droughts, floods and other disasters derived from the El Niño and La Niña phenomena.

The Bank considered that all these positive projections are also valid for 2025 and that GDP could even reach 4.5 points of expansion at the end of next year.

Honduras proyecta buen desempeño económico en 2024 - Noticias Prensa Latina

Tegucigalpa, 3 abr (Prensa Latina) Honduras puede cerrar 2024 con buen desempeño económico, gracias a indicadores como un crecimiento del Producto Interno Bruto (PIB) superior al 3,5 por ciento y el descenso inflacionario hasta los cinco puntos, proyectan hoy fuentes oficiales.

www.prensa-latina.cu

 

[E-195]

TAIPEI, Oct 8 (Reuters) - Foxconn (2317.TW), opens new tab is building in Mexico the world's largest manufacturing facility for bundling Nvidia's (NVDA.O), opens new tab GB200 superchips, a key component of the U.S. firm's next-generation Blackwell family computing platform, senior executives at the Taiwanese company said on Tuesday.
Foxconn, the world's largest contract electronics manufacturer and known as Apple's (AAPL.O), opens new tab biggest iPhone assembler, has been benefiting from the artificial intelligence boom as it assembles servers used to process AI work.

https://www.reuters.com/technology/foxconn-says-it-is-building-worlds-largest-manufacturing-facility-for-nvidias-2024-10-08/

 

[shade2]

The only outpost of Lol Salaam remaining in Latin America has plunged into darkness

Power goes out on entire island of Cuba, leaving 10 million people without electricity

Cubans expressed alarm, with one resident saying it felt as if the country had reached the “bottom of the barrel.”

www.nbcnews.com

 

[E-195]

COAHUILA - The state of Coahuila ranked first nationally in terms of electric vehicle production, with 71 percent of the country's total, according to OMRON's Mapping Electromobility in Mexico 2024.

The percentage is equivalent to 46,166 units, out of 65,045 total electric units manufactured in Mexico.

Coahuila has become an attractive state for investment thanks to its stability, infrastructure and skilled labor force, according to the State Government.

In the study Mapping Electromobility in Mexico 2023, it is highlighted that the entity produced 11 percent of the electric vehicles in the country; and from January - December 2023, to January - May 2024 the production of electric vehicles in the state increased 3.8 times.

Coahuila currently produces the following electric vehicle brands: Chevrolet Blazer EV SUV, Chevrolet Equinox EV SUV, Honda Prologue (at the GM Ramos Arizpe Plant). And in 2025 the Cadillac Optiq EV SUV will be produced.

Likewise, and according to this same study, Coahuila ranks third in raw material supply for electric vehicles, only behind Guanajuato and Nuevo Leon.

“The companies that invest in our state are doing well, they are successful, that is why we reiterate all the necessary support so that their operations continue to grow and their products are among the best in the world,” said Governor Manolo Jimenez.

Coahuila ranks first nationally in electric car production - MEXICONOW

The state of Coahuila ranked first nationally in terms of electric vehicle production, with 71 percent of the country's total

mexico-now.com

 

[E-195]

STORY: :: Sheinbaum says Trump's threat of 25% tariffs

on Mexico would cause inflation for both countries

:: November 26, 2024

:: Claudia Sheinbaum, President of Mexico

“To one tariff will come another and so on, until we put our common businesses at risk. For example, Mexico's main exporters to the United States are General Motors, Stellantis, and Ford Motor Company, which came to Mexico 80 years ago. Why put a tax on them that puts them at risk? It is not acceptable and would cause the U.S. and Mexico inflation and job losses.” // "But if we focus on coordination and collaboration to be able to address the migratory phenomenon in a deep way, the problem of the humanitarian crisis they have in the United States due to the consumption of fentanyl, then they will be addressed integrally. That is why I say, in addition to the letter, we are going to seek a call so that we can sit down as soon as possible.”

Sheinbaum added that she would send the letter later in the day.

Trump made the pledge on Monday (November 25) evening, blaming Mexico for not doing more to halt the arrival of illicit drugs and undocumented migrants via the countries' shared border.

Tariffs could violate the United States-Mexico-Canada Agreement (USMCA), which the countries signed in 2020 when Trump was president.

Mexico's president says Trump tariffs will worsen inflation

STORY: :: Sheinbaum says Trump's threat of 25% tariffson Mexico would cause inflation for both countries:: November 26, 2024:: Claudia Sheinbaum, President of Mexico“To one tariff will come another and so on, until we put our common businesses at risk. For example, Mexico's main exporters to the...

www.yahoo.com

 

[E-195]

The Secretary of Economy, Marcelo Ebrard, says he is optimistic despite Donald Trump's threats to impose 25 percent tariffs on Mexican products. Ebrard assures that they will not apply these taxes because it would translate into inflation for the United States, which is why they are considering opening a negotiation and dialogue with the president-elect's team. Ebrard assures that Trump will not throw out the T-MEC since it is a treaty promoted by his administration and because trade grew 32 percent between the United States and Mexico, while in the region it rose to 48 percent.

View: https://www.youtube.com/watch?v=oU-mgsfICuM

 

[E-195]

• Trump's tariffs could raise SUV and pickup truck prices for U.S. consumers
• Tariffs seen by some analysts as negotiating tactic linked to immigration and drug issues
• Mexican President Sheinbaum warns tariffs could worsen inflation, kill jobs

MEXICO CITY/DETROIT, Nov 26 (Reuters) - U.S. President-elect Donald Trump's plan to slap a 25% tax on all imports from Mexico and Canada could strike the bottom lines of U.S. automakers, especially General Motors (GM.N), opens new tab, and raise prices of SUVs and pickup trucks for U.S. consumers.
GM leads the automakers that export cars from Mexico to North America. The top 10 car manufacturers with Mexican plants collectively built 1.4 million vehicles over the first six months of this year, with 90% heading across the border to U.S. buyers, according to the Mexican auto trade association.

Other Detroit manufacturers will likely also feel the pain: Ford (F.N), opens new tab and Stellantis (STLAM.MI), opens new tab are the top U.S. producers in Mexico after GM, whose shares fell on Tuesday, the day after Trump's tariff announcement.
GM is expected to import more than 750,000 vehicles from Canada or Mexico this year, with most manufactured south of the border, according to business analytics firm GlobalData.
They include some of GM’s most popular vehicles, including nearly 370,000 Chevy Silverado or GMC Sierra full-sized pickups and nearly 390,000 midsized SUVs.

GM's Mexican plants also build two of its critical new electric vehicles, battery-powered versions of its Equinox and Blazer SUVs. Those GM models and others are already in the crosshairs of another expected Trump policy: ending a $7,500 EV subsidy, a move first reported by Reuters.
GM, Stellantis and Ford declined to comment on Trump's proposed tariffs.
Kenneth Smith Ramos, Mexico's former chief negotiator for the USMCA trade pact, said the move could hurt the United States as much as its North American trading partners.


"The U.S. would be shooting itself in the foot," he said. The impact on Mexico's auto industry would also be "very negative."
GM employs 125,000 people in North America; a decline in sales of its Mexico-made cars could hurt its profit for the entire region, potentially putting pressure on payrolls on both sides of the border.
The tariff hikes would also serve as a reminder of the supply chains, which closely bind the three members of the United States-Mexico-Canada Agreement. Mexico and Canada account for more than 50% of all auto parts exported to the United States - sending nearly $100 billion in parts. Imposing the tariffs would increase the costs of all vehicles assembled in the United States.

https://www.reuters.com/business/autos-transportation/gm-other-us-automakers-would-take-big-hit-trump-tariffs-2024-11-26/

 

[E-195]

Trump warns John Deere of ‘200% tariff’ but market shrugs off the threat​

John Deere is the latest company to draw the ire of former President Donald Trump for investing south of the U.S. border. At an event Monday in the battleground state of Pennsylvania, the Republican nominee threatened the company with a “200% tariff” if it shifts some production to Mexico as planned, causing the stock to briefly sag in after-hours trading.

Facing rising costs and declining demand, John Deere announced earlier this year that it would lay off over 800 workers across factories in Illinois and Iowa. The company has also bought land in Ramos, Mexico, for a new facility that will take over production currently done at its plant in Dubuque, Iowa.

“I am just notifying John Deere right now that if you do that, we are putting a 200% tariff on everything that you want to sell into the United States,” Trump said at roundtable focused on threats to U.S. farmers, principally from China.

As he did in 2016, Trump has made protectionism a key component of his campaign. He’s proposed a worldwide tariff of 10%, as well as a 60% tariff on all Chinese goods. He’s also resumed his attacks on American companies expanding in Mexico, a consistent refrain since his first run to the White House.

This Lack of Understanding of Business is insane.

Put a 200% tariff on the American company moving some production to Mexico

But tariff Chinese manufacturers 10 or 20%, so that the Chinese products will be cheaper to sell in the US than the American company.


View: https://www.youtube.com/watch?v=2NXPFa_yvT0

https://www.yahoo.com/finance/news/trump-warns-john-deere-200-161831624.html

 

[E-195]

Shortly after a trade dispute panel ruled that Mexico violated its obligations regarding genetically modified corn under the U.S.-Mexico-Canada Agreement on trade (USMCA), Mexican President Claudia Sheinbaum said the Mexican Congress will pass a law prohibiting the planting of genetically modified corn.

In a statement published by the government of Mexico, Sheinbaum said, “The Mexican Congress, here with the help of the senators and deputies, we are going to reverse this resolution, because very soon, in February (in the next session), they are going to legislate, I am sure, that transgenic corn cannot be planted and that Mexico’s biodiversity must be protected in our country. As we say: Without corn, there is no country!”

The statement did not refer to Mexico’s importation of corn used for animal feed

Mexico plans law to safeguard its corn

Shortly after a trade dispute panel ruled that Mexico violated its obligations regarding genetically modified corn under the U.S.-Mexico-Canada Agreement on trade (USMCA), Mexican President Claudia Sheinbaum said the Mexican Congress will pass a law...

www.thefencepost.com

 

[E-195]

India-Cuba Relations: A 65-Year friendship anchored in solidarity and BRICS partnership​

India’s donations of medicines and pharmaceutical ingredients have been especially vital following the devastating impact of natural disasters like hurricanes and earthquakes. Furthermore, lines of credit extended by India—such as the one in 2023 for rice procurement—have proven crucial in addressing Cuba’s food security needs.​

View: https://www.youtube.com/watch?v=ars3nYTdIqI

https://www.financialexpress.com/world-news/india-cuba-relations-a-65-year-friendship-anchored-in-solidarity-and-brics-partnership/3713179/

 

[E-195]

President Claudia Sheinbaum has unveiled Plan México, a national initiative developed in collaboration with the private sector to fortify Mexico’s economic resilience and promote regional equity. This strategic roadmap focuses on attracting private investment, fostering industrial growth, and creating hubs of social and economic prosperity aligned with the government’s well-being centers. Sheinbaum describes the initiative as “a vision of equitable, sustainable development that prioritizes industrialization, economic growth, and above all, the well-being of Mexicans.”

A key objective of the plan is strengthening regional markets and reducing dependency on Asian imports, currently valued at over US$210 billion annually. “Plan México is our navigation chart for a transformative era,” states Marcelo Ebrard, Minister of Economy. He highlights the collaborative approach involving federal entities, state economic development secretaries, and private sector leaders. “Uncertainties lie ahead, but with cohesion and a strong national direction, we will overcome them,” he adds.

Key Objectives of Plan México

The initiative outlines a robust, long-term framework designed to integrate Mexico into global value chains while addressing regional disparities. Core objectives include:

1. Positioning Mexico among the Top 10 global economies by strengthening the domestic market and increasing international participation
2. Maintaining investment as a percentage of GDP above 25% by 2026 and 28% by 2030
3. Generating 1.5 million additional jobs in specialized manufacturing and strategic sectors
4. Ensuring 50% of national consumption is sourced from Mexican suppliers in strategic sectors
5. Increasing local content in global value chains by 15% in key industries such as automotive, aerospace, electronics, semiconductors, pharmaceuticals, and chemicals
6. Directing 50% of public procurement toward national production, leveraging public purchasing as a development tool
7. Manufacturing vaccines in Mexico, advancing complete pharmaceutical production processes, local packaging, and focusing on advanced biotechnology
8. Reducing the total time to finalize an investment from 2.6 years to 1 year, with 50% fewer procedures using a unified digital investment portal
9. Training 150,000 professionals and technicians annually through continuous education programs aligned with strategic sectors and achieving 100% dual education in technical high schools
10. Promoting investments with environmental, social, and governance (ESG) practices, emphasizing water reuse, clean energy, solid waste management, and community impact initiatives
11. Ensuring 30% of SMEs have access to financing through collaboration between development and commercial banks to expand funding opportunities
12. Becoming one of the Top 5 most-visited countries in the world
13. Reducing poverty and inequality across the country

Action Plan for 2025

• Jan. 9: First session of the Advisory Council for Economic Development, Regional Growth, and Business Relocation
• Jan. 13: Presentation of the Mexico Plan
• Jan. 15: Monthly monitoring meeting to review the progress of the private investment portfolio and the development of 100 industrial parks
• Jan. 6–15: Start of tripartite collaboration (businesses, universities, government) on strategic projects, including Olinia, data centers, drones, the Mexican satellite launch, and biogenerics and biosimilars
• Jan. 17: Publication of the Relocation Decree to implement accelerated depreciation for new investments in fixed assets by global and Mexican companies, applicable until 2030
  
  • Launch of the National Digital Investment Platform
  • Publication of the National Law for Simplification and Digitalization
• Jan. 20–24: Working groups with importing companies to foster local and regional supply chains, including tariff alignment with North America
• Feb. 3–7: Launch of a Development Banking Fund to support MSMEs, suppliers, and exporters working with anchor companies
  
  • Establishment of new energy consumption regulations and private participation schemes in energy generation
• Feb. 17–21: Relaunch of the “Made in Mexico” brand.
  
  • Development of mixed investment schemes for infrastructure projects, aiming to tender projects requiring at least MX$100 billion in private investment
  • Creation of a collaboration network for technical and ongoing curriculum training for secondary and high school education, with key players including the Ministry of Science, Humanities, Technology, and Innovation, the Ministry of Economy, TecNM, IPN, UNAM, and the private sector
• Feb. 24–28: Publication of a decree establishing at least one development hub per industrial corridor with the same incentives as CIIT.
  
  • Launch of the IMMEX 4.0 program.
• April 18–19: Signing of an agreement between Banxico, the Mexican Bank Association, and the federal government to increase PYME financing access by 3.5% annually.

Driving Industrial, Sustainable Growth

Plan México includes several strategies to foster industrial development and sustainability:

1. Relocation Decree: Offering immediate deductions of 56–89% on new fixed asset investments, with higher percentages applied to investments in high-tech, research, and development sectors

• No Distinction applies equally to foreign and Mexican companies
• No discrimination by industry or sector
• Additional deduction of an extra 25% deduction on incremental expenses for training workers in collaboration with educational and research institutions
• In effect until October 2030

1. Well-Being Hubs: Creating new industrial corridors with environmental and social impact assessments, fiscal incentives, and special customs regimes

• Legal framework establishes 12 CIIT Welfare Poles (PODEBIS), two Yucatan Poles, and five additional confined polygons
• Requirements include government land contributions, subject to environmental and social impact assessments
• Planning tools include a master plan and development programs.
• Legal Certainty: Includes fiscal incentives, a special customs regime, and a single digital window for streamlined processes

1. IMMEX 4.0: Consolidate the process for the current VAT and IEPS Certification with the procedure for the new Export Manufacturing Program 4.0 within the Ministry of Finance

• Reduces the startup time for new businesses by 50%

1. Development Banking

• Reverse Factoring Flow: The bank assesses the risk of the anchor company, not the MSME, which sells between US$100 and US$500 million annually, depending on the sector.
• The MSME supplier registry is linked to the anchor company.
• Design of supply chains for scale and specialization

Well-Development Hubs Distribution Per Industry

According to the Plan México, Well-Development Hubs have been distributed according to their main industry focus in the following regions:

• Border Region – 300ha, Nuevo Laredo: semiconductors, consumer goods, automotive, and electromobility
• Gulf of California – 555ha, Hermosillo: energy, pharmaceuticals and medical devices, chemicals, and petrochemicals
• North – AHMSA 740ha; Binational Park Piedras Negras 300ha: aerospace, consumer goods, automotive and electromobility, agribusiness, textiles and footwear, energy, pharmaceuticals and medical devices, chemicals, and petrochemicals
• Durango – 470ha: energy and consumer goods
• Northwest – Sonora Plan: energy, automotive and electromobility, semiconductors, consumer goods, and aerospace
• Bajio – 52ha, Celaya: automotive and electromobility, consumer goods, textiles and footwear, and agribusiness
• Pacific – 608ha, Lazaro Cardenas Port: agribusiness, textiles and footwear, pharmaceuticals and medical devices, consumer goods, automotive and electromobility, semiconductors, and chemicals and petrochemicals
• AIFA – 300ha, Tula: aerospace, agribusiness, pharmaceuticals and medical devices, textiles and footwear, energy, chemicals, and petrochemicals
• Center – 462ha, Puebla: automotive and electromobility, agribusiness, textiles and footwear, energy, aerospace, chemicals and petrochemicals, and consumer goods
• Gulf – 935ha, dry port in Tamaulipas: energy, agribusiness, consumer goods, and aerospace
• Isthmus – 12 development hubs: energy, agribusiness, and consumer goods
• Maya – 223ha, Merida and Progreso: energy, agribusiness, and aerospace

Public Investment in Infrastructure:

A MX$115 billion (US$5.55 billion) investment for 1,980km of road interventions, including critical highways and regional connectors is also considered in the plan. Projects include over 5,600km of passenger rail projects, creating 3.6 million jobs and boosting connectivity across 24 states. Investment is divided as such:

1. Cuautla-Tlapa-Marquelia: MX$13.5 billion - 264km
2. Pachuca-Huejutla-Tamazunchale: MX$6.6 billion - 97km
3. Bavispe-Nuevo Casas Grandes: MX$ 1.8 billion - 69km
4. Tierra y Libertad Circuit: MX$124 million - 7km
5. Toluca-Zihuatanejo: MX$18.5 billion - 317km
6. Salina Cruz-Zihuatanejo: MX$28.2 billion - 478km
7. Macuspana-Escarcega: MX$11.1 billion - 130km
8. Ciudad Valles-Tampico: MX$6.3 billion - 68km
9. Transpeninsular: Tijuana-Ensenada, By-Pass: MX$3.5 billion - 24km
10. Saltillo-Monclova: MX$7.7 billion - 179km
11. Guaymas-Esperanza-Yecora-Chihuahua: MX$18.1 billion - 347km

The main goal is to develop these enhancements during the 2025-2030 period, creating 347,972 jobs, 44,800km of conservation and 3,000km of rural roads.

Investment Plan:

Sheinbaum highlights that there is going to be a mixed investment plan to share risks and benefits between the public and private sectors in terms of passenger trains.

Passenger Train Plan Projects:

• 5,647km of railway
• MX$1.24 trillion investment
• 24 states covered
• 3.6 million jobs created

Key Routes:

• Mexico City – Nuevo Laredo
• Mexico City – Nogales
• Mexico City – Pachuca
• Mexico City – Queretaro
• Queretaro – Irapuato
• Saltillo – Nuevo Laredo
• Interoceanic Train, Line K
• Mayan Train (cargo)

Sheinbaum had previously confirmed ongoing progress in passenger rail projects, including the Interoceanic Train and new routes such as Mexico–Nuevo Laredo and Mexico–Pachuca. Key road expansions, including the San Cristobal–Tuxtla Gutierrez and Mitla–Tehuantepec highways, are also set for completion. On the other hand, Mexicana de Aviación will receive new aircraft to enhance connectivity.

Water Project

In terms of water, Sheinbaum mentions that the main goal is to modernize irrigation systems in at least 50% of districts, securing water for increased food production and, primarily, for human consumption as a basic human right.

The main goals to be achieved include:

• 17 infrastructure projects benefiting 31 million people
• Sanitation of water bodies, particularly the Lerma-Santiago, Atoyac, and Tula rivers
• National Irrigation Modernization Program: modernization of 200,000ha of irrigated land, benefiting 225,000 producers
• US$20 billion public investment in water projects by 2025
• National Agreement for the Human Right to Water and Sustainability
• Over MX$21 billion in private investment

A decree will be issued to regularize concessions and allow the population access to subsidies, credits, and programs.

Strengthening Regional Markets and Innovation

The plan also prioritizes enhancing scientific and technological capabilities, with an emphasis on:

• Advanced biopharmaceutical manufacturing and vaccine production in Mexico
• Sustainable practices in energy, water reuse, and waste management
• Expanding access to financing for SMEs through innovative banking collaborations

Claudia Sheinbaum Unveils Plan México for Economic Growth

Claudia Sheinbaum unveils Plan México, a national initiative to strengthen regional markets, attract investment, and drive industrial growth.

mexicobusiness.news