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Mexico, India to Collaborate in Innovative Binational Project

In March 2023, Marcelo Ebrard, Minister of Foreign Affairs, went to New Delhi, India, to advance innovative binational projects in the fields of aerospace, lithium, biotechnology, water and vaccines, before opening a Mexican Consulate in Mumbai. An agreement was signed between the Ministry of Foreign Affairs, represented by Ebrard, and the Council of Scientific and Industrial Research (CSIR), represented by Dr.Jitendra Singh, India’s Minister of Science and Technology.

“Both countries will identify priority projects for development, including hydraulic management, electromobility and production of vaccines at low cost. Once the funding is determined, research institutes will be called upon to implement the project,” said Ebrard. The agreement also considers a fund of US$1 million, financed by both countries of US$500,000 each.

Both Mexico and India are part of the G20, which plays an important role in shaping and strengthening global architecture and governance on all major international economic issues. The collaboration between G20 countries on lithium research is a move in the right direction as lithium can help Mexico with its energy transition due to its role in rechargeable batteries for e-vehicles.

In February 2023, the Geological Survey of India (GSI) stated the discovery of 5.9Mt of Lithium deposits in the Salal-Haimana area of Jammu & Kashmir’s Reasi District. During his visit, Ebrard encouraged Sun Mobility, a company known for building energy infrastructure for electric vehicles, to expand into Mexico. The company tweeted, “We had the pleasure of demonstrating our battery swapping solution to @m_ebrard … during his visit to Delhi. It is highly motivating for us to receive such a positive response for our “Made in India” solutions for the world.”

Regarding vaccines, India has been named the “Pharmacy of the World” for not only successfully carrying out the largest vaccination campaign during the COVID-19 pandemic but also for providing vaccines to over 100 countries under its Vaccine Maitri initiative. Both India and Mexico will benefit from this collaboration, as manufacturing becomes more regionalized.

Source: Anmol Notwani, Mexico Business

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Chihuahua moves forward in electromobility

CHIHUAHUA – Given the current global restructuring of value chains, nearshoring represents a growth opportunity for the coming years, and the state of Chihuahua is looking to diversify and lead in the industry.

Although Chihuahua is making progress to position itself as a pioneer in electromobility, challenges remain, such as the development of public policies, infrastructure, labor force, incentives and greater promotion.

Experts explained that given the current global restructuring of value chains, nearshoring represents an opportunity for growth in the coming years, which is why the state seeks to diversify and lead in the electromobility industry.

For Francisco González, president of the National Auto Parts Industry, the generation of talent and the development of infrastructure at a national and local level to detonate this type of projects are priorities that states must keep in mind, because with the arrival of new companies and future requirements (such as charging stations) they will be necessary.

“The concrete challenges are to have a clear idea of the development of people, the development of talent for electromobility. To have good universities, good preparation. What we require at the state level is the facilitation of charging stations, having the possibility of infrastructure and greater accessibility,” he said.

In an interview with El Economista, María Angélica Granados Trespalacios, head of Chihuahua’s Department of Innovation and Economic Development, explained that the local government is developing short, medium and long-term plans for infrastructure.

In energy matters, she recalled, the State Agency for Energy Development was recently created to work with the private sector to develop the infrastructure required by new companies; Chihuahua is the city with the highest demand.

 

Source: Mexico Now

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Harán crecer a 12 empresas juarenses

Con la participación de 12 empresas de distintos rubros arrancó ayer la octava generación de The Bridge Accelerator, programa que tiene por objetivo el desarrollo de proveeduría regional.

En la inauguración del evento se contó con la ponencia de Eduardo Rodríguez Dávalos, fundador de Grupo La Nogalera, empresa juarense dedicada a la rama de la agroindustria en Jiménez, quien compartió a los cursantes que tratar al factor humano con paciencia y con convicción asegurará el éxito de sus compañías.

“Siempre hay que tener un enfoque humano y el trato a las personas por convicción, no por conveniencia; ése el motivo por el cual hemos logrado tener el éxito que tenemos hasta ahorita”, expresó.

Sin embargo, agregó que después de 23 años ha pasado por muchas adversidades y retos, como es satisfacer a todos los colaboradores, que incluye tanto al equipo de trabajo, los clientes y los proveedores, que son los productores de nueces.

Otros de los desafíos son tener acceso a los recursos para operar, por lo que invitó a los participantes a aprovechar las herramientas que les ofrece The Bridge Accelerator.

“La evolución de La Nogalera, empresa local e internacional, sirve como inspiración a los empresarios de nuestra región para buscar mejorar sus modelos de negocios y trascender fronteras”, comentó Omar Saucedo, gerente de Microsoft TechSpark, una de las compañías que hacen posible este programa binacional.

IPS Techology, IMTECH Software, Grupo AG Tech Solutions, GlezCo Express, Paso del Norte Reciclado, Coplasco, Laser Innovation, Magenta Registro, Servicio Médico Empresarial de la Frontera, NAI México, Acces Group y Recilogic son las empresas que durante 12 semanas serán capacitadas para hacer crecer sus negocios.

“Ésta es la octava generación, llevamos ya 78 Pymes que han pasado por este programa, con ventas por 61 millones de dólares y la creación de más de 500 nuevos empleos”, dijo Saucedo.

 

Source: El Diario

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CFE will invest US$24 million in Aguascalientes

AGUASCALIENTES – In a meeting with the Aguascalientes State Business Council (CEEA), the Federal Electricity Commission (CFE) assured that the electricity supply is guaranteed in the state, and this year and next year alone, an investment of US$24 million in electricity infrastructure is planned.

The investment will be focused on areas with less power, which will be equipped with substations, transmission lines, capacitor banks and high voltage lines.

In the meantime, there is sufficient load capacity in the State, but investment in new infrastructure will continue.

It was explained that in view of the expected arrival of new investments in the State, the CFE has feasibility studies to grant the required load capacity, as explained.

It was also agreed to maintain a direct line of communication between the members of the CEEA and the CFE for the timely attention of any report of power supply failure.

During the meeting attended by the members of the Council headed by Antonio Robledo Sánchez and the CFE Superintendent, José Francisco Medina Lucio, it was informed that in Aguascalientes there are more than 600,000 users of the electric energy service; 90 percent are domestic users and the rest are industrial users.

The businessmen were also informed of the willingness to attend to supply failures, 90 percent of which are attributed to road accidents -crashes against poles and transformers- especially on weekends.

For their part, the businessmen expressed the importance of attending to the failures in a timely manner, since every minute that a blackout lasts generates a great economic impact on the production lines.

 

Source: Mexico Now

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Mexico seeks to build lithium battery industrial park

NUEVO LEON – The Mexican government seeks to create an industrial park for electric batteries (Lithium), alongside Tesla’s gigafactory in Nuevo Leon.

According to Martha Delgado, Undersecretary for Multilateral Affairs and Human Rights of the Ministry of Foreign Affairs (SRE), the park will house different manufacturers, including Elon Musk’s firm.

“The government plan estimates that the battery industrial park will be built in the center of the country, since it is a strategic location,” she added.

This location was chosen to supply the automotive industry plants located in Puebla, Queretaro, State of Mexico and the Bajio region.

The undersecretary highlighted the state of Hidalgo as one of the entities that would benefit from the project. However, according to the Mexican Association of the Automotive Industry (AMIA), Hidalgo does not have any light vehicle manufacturing plants.

It is worth mentioning that recently President Andres Manuel Lopez Obrador noted the possibility of investments in Sonora or Hidalgo related to lithium.

Regarding this, Martha Delgado said that there is an incentive issue that is being discussed with Tesla and that Mexico is reviewing with the Treasury.

“The United States has high subsidies for electric battery factories. For this reason, the Foreign Ministry and the Treasury are working on putting together an “interesting” incentive package in order to allow Tesla to establish itself in the country,” added Martha Delgado.

For his part, Mexico’s Secretary of Finance, Rogelio Ramírez de la O, said that Tesla’s proposal consists of matching U.S. tax incentives under the Inflation Reduction Act (IRA), estimated at US$369 billion for the climate change and electromobility sector.

However, the Mexican government refused to match the tax incentives.

 

Source: Mexico Now

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JPMorgan Says Bright Mexico Outlook Contrasts With Brazil Gloom

Tesla plant, high demand boost optimism on Mexican economy
Bank says high interest rates will drag down Brazilian economy

 

Latin America’s top two economies are moving in opposite directions, with export and investment growth propelling Mexico while Brazil is set to fall into recession, according to JPMorgan Chase & Co.

“Mexico is the silver lining in Latin America as it remains on a strong footing, on the back of resilient external demand, domestic consumption, and the catching up in fixed investment,” JPMorgan economists including Cassiana Fernandez and Gabriel Lozano wrote in a report published Monday.

In contrast, “Brazil, which was one of the first economies to tighten policy, will also be among the first to see a recession,” the economists wrote.

Mexico’s Dec. Fixed Investment Rises Up Most in 15 Months

Analysts became more optimistic about the Mexican economy after Tesla Inc. announced the construction of a new factory in Monterrey, an industrial city near the border with Texas, that’s likely to bring in billions of dollars of investment. Meanwhile, Brazil’s worse-than-expected end to 2022, when the economy shrank 0.2% during the final quarter, raised concerns that high interest rates will be a big drag on growth this year.

The economists don’t see Brazil’s central bank cutting rates “anytime soon,” unless there’s a deeper fall in economic activity.

“Looking ahead, we expect some economic recovery during the year – aided by a more solid external outlook particularly with China re-opening strength – but with growth remaining below potential up until the end of 2024,” they wrote.

On Monday, Mexico’s statistics institute reported that gross fixed investment grew 9.4% in December compared to the previous year, the fastest expansion since Sept. 2021. Shipments of vehicles, one of Mexico’s main exporting products, grew over 14% in February to 230,484 units, the institute said.

Source: Andrew Rosati, Bloomberg 

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Giving Guadalajara Its Due as a Hotbed for Innovation

The need for world-class manufacturing and engineering talent in the automotive sector has reached a fever pitch as automakers, along with Tier 1 and 2 suppliers, gain velocity in delivering on the many promises of electrification. Success requires careful maneuvering around seemingly endless technology, supply chain and production speed bumps.

For that reason, among others, Molex recently opened a factory in Guadalajara, Mexico, to accelerate innovation on behalf of automotive, transportation and industrial customers in North America and globally. While the company’s manufacturing presence in Mexico has grown steadily for more than a half-century, this move is aimed at alleviating complex challenges in vehicle connectivity, electrification, battery management, functional safety and zonal architectures.

By doubling down on a new facility nearly twice as large as its existing Guadalajara footprint, Molex attains ready access to advanced manufacturing capabilities and a diversified pool of highly experienced engineers. This enables us to extend and complement our engineering resources throughout North America, Asia and Europe.

According to the International Trade Administration (ITA), Mexico produces approximately 3 million vehicles annually, with 76% destined for the United States. A long list of automakers has factories throughout the country, including Audi, BMW, Ford, General Motors, Honda, Hyundai, Kia, Mazda, Mercedes Benz, Nissan, Stellantis, Toyota and Volkswagen. Additionally, over 1,100 Tier 1 and several thousand Tier 2 and Tier 3 auto-parts manufacturers and suppliers have operations in Mexico.

Anyone prioritizing Mexico as a labor-arbitrage solution is missing the point. This country clearly has so much to offer. Mexico’s emphasis on STEM education is contributing to a rapid rise in engineering talent. In metro Guadalajara alone, more than 20 universities offer engineering programs focused on electronics, software, renewable-energy technologies and artificial intelligence.

Mexico also offers excellent opportunities for “nearshoring,” which relocates manufacturing closer to final delivery destinations. Trade agreements, such as the U.S.-Mexico-Canada Agreement (USMCA), provide incentives that can lower production costs while strengthening a company’s North American presence.

What stands out, however, is Mexico’s budding reputation as the “Silicon Valley of the South.” In particular, Guadalajara has become a hotbed for innovation, encouraging leading-edge product development and entrepreneurial thinking, along with increased foreign and venture-capital investments. According to Credit Suisse’s Mexico Nearshoring Tracker Second Edition released in October, Volkswagen, Flex Americas, Continental, Bosch and Molex contributed the most to the $2 billion invested during the quarter.

Molex’s decision to expand south of the U.S. border took place well before the pandemic and massive supply chain disruptions that caught many companies off guard. The company’s strategy to invest $130 million in a second factory in Guadalajara emerged from ongoing discussions about broadening supply chains, shortening lead times, localizing production and accessing specialized expertise to spur electrification.

These goals aligned with Molex’s plan to embrace factory-of-the-future capabilities, including production-line automation, advanced materials handling, robotics, cutting-edge molding and assembly, digital twins, artificial intelligence, predictive analytics, machine learning and other data-driven, digital technologies, tools and processes.

Expansion in Guadalajara also enabled the company to apply expertise from working with makers of sophisticated medical devices, high-speed networks and powerful data-center solutions — all critical to developing tomorrow’s electric vehicles, advanced driver-assistance systems (ADAS) and vehicle-to-everything (V2X) communications. We now can readily tap into a region rich with relevant customer experiences, proven engineering talent and overarching commitments to R&D.

Guadalajara has a strong foothold in electronics, medical devices and automotive manufacturing. The biggest EMS players — including Jabil, Flex and Sanmina, among others — have world-class factories here. Many tech titans in software, hardware and digital technologies also have a growing presence, which bodes well for the automotive industry because cars of the future will function more like data centers on wheels.

Equally important is the increase in on-site testing capabilities, such as the reliability and metrology lab Molex is implementing in Guadalajara. The goal is to empower local engineers to improve product designs and speed development cycles using testing, simulations and analyses that reduce rework costs and time. In collaboration with customers and colleagues, Molex is committed to Mexico for the long haul — and excited about discovering new and creative ways to continually add customer value.

 

SOURCE: EE | TIMES

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Mexico, U.S. and Canada agree to promote electromobility

MEXICO – Mexico, the United States and Canada will seek to create stronger regional supply chains and promote targeted investment in key industries of the future, such as semiconductors and electric vehicle batteries, which will be key to advancing the development and infrastructure of electric vehicle technology.

This during the North American Leaders’ Summit (NALS) where U.S. President Joseph Biden, Canadian Prime Minister Justin Trudeau and Mexican President Andrés Manuel López Obrador participated.

“We seek to deepen our regional capacity to attract high-quality investment, drive innovation and strengthen the resilience of our economies, recognizing the benefits brought by the Mexico-U.S.-Canada Agreement (T-MEC),” they reported in a joint statement.

On job creation, the three governments pledged to work with the private sector, civil society, labor and academia across North America to foster high-tech entrepreneurship, promote small and medium-sized enterprises, as well as strengthen technical education.

Leaders also agreed to strengthen the security, prosperity, sustainability and integration of our region through commitments around six pillars: diversity, equity and inclusion; climate change and environment; competitiveness; migration and development; health; and regional security.

 

Source: Mexico Now

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US and Mexico strategize to lure ‘nearshoring’ business relocation from Asia

Mexico and the United States will work together to lure companies to North America from Asia, the Economy Ministry (SE) said Friday.

After a meeting between Economy Minister Raquel Buenrostro and U.S. Secretary of Commerce Gina Raimondo, the SE said that those two officials will collaborate to put together a “joint presentation” to the private sector “to disseminate the opportunities and economic and fiscal benefits that both countries offer for the relocation of companies.”

The presentation will be put forward in the first two months of 2023, the ministry said in a statement.

Buenrostro said last month that over 400 North American companies already “have the intention to carry out a relocation process from Asia to Mexico.”

The ongoing United States-China trade war, proximity to the U.S., USMCA free trade pact-associated benefits and affordable labor costs are among the reasons why many companies are looking to shift operations to Mexico.

The SE said Buenrostro and Raimondo discussed a range of issues at their meeting in Washington, “among which the relocation of companies from Asia to North America and the strengthening of supply chains stand out.”

They particularly focused on issues related to the printed circuit board and semiconductor sector, the ministry said.

The United States earlier this year invited Mexico to take advantage of massive U.S. investment in the semiconductor industry. The U.S. Department of Commerce released a strategy in September outlining how it would implement US $50 billion from the CHIPS and Science Act of 2022, an executive order that U.S. President Joe Biden signed in August.

According to the SE statement, Buenrostro and Raimondo agreed that “the relocation of companies is a historic opportunity for the strengthening and economic integration of North America,” where the USMCA has been in effect since the middle of 2020.

“Through [the U.S.-Mexico] High-Level Economic Dialogue, both governments agreed to strengthen coordination to create better [economic] conditions and accelerate the arrival of new investment to Mexico,” the ministry said.

It noted that Buenrostro highlighted that Mexico has the workers companies that relocate here will need, and that she and Raimondo “emphasized the importance of the Economy Ministry acting as a one-stop shop for the attraction of capital.”

In other words, the SE should issue all “permits and authorizations required for the establishment of new companies” in Mexico.

The ministry also said that Buenrostro and Raimondo agreed that energy security, food security and national security are “the main pillars on which the region’s economic development rests.”

In a brief press release, the U.S. Department of Commerce said that the two officials discussed “how Mexico and the United States can collaborate to develop more resilient supply chains.”

“They also discussed areas of mutual interest such as renewable energy,” it added.

Buenrostro’s talks with Raimondo came a day after she met United States Trade Representative Katherine Tai. At that meeting, the economy minister proposed establishing “trinational working groups” that would meet in December and early January to “deal with the different aspects of” the energy dispute between Mexico and its two North American trade partners.

In July, both the U.S. and Canada requested dispute settlement consultations with Mexico, arguing that the Mexican government is violating the USMCA with policies that favor state-owned energy companies over private and foreign ones, including many that generate renewable energy.

 

Source: Mexico News Daily 

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