Recent and upcoming investment in Mexico

bdp-americas.com

Information collected from media reports over the past month:

• Healthcare: Mexican hospital operator Grupo Oca DH has initiated construction of a new hospital in the northeastern state of Nuevo León, and plans an additional hospital in Mexico City next year.  The US$110 million Nuevo León site will include 17 floors, 32 intensive care units and state-of-the-art medical technology. (El Financiero, December 17, 2013)
• Automotive: U.S. auto parts and accessories retailer AutoZone looks to expand aggressively in the Mexican market via investment of US$160 million.  Plans include construction of a large scale distribution center in central Mexico and the opening of 40 new sales location.  AutoZone currently operates 363 stores in Mexico. (Reforma, December 16, 2013)
• Manufacturing: Mexican kitchen and bathroom fixture manufacturer Helvex plans investment of up to US$7 million in 2014.  Resources will go toward maintenance and equipment upgrades for the company’s manufacturing infrastructure. (Reforma, December 13, 2013)
• Retail: Swiss watchmaker Swatch Group announced it will launch its own stores in the Mexican market.  The company recently opened its first store in Mexico City, and seeks expand to 15 stores in Mexico by the end of 2015. (Reforma, December 9, 2013)
• Livestock: Mexican meat processor SuKarne is currently building the country’s largest integrated livestock and feed production facility.  The US$615 million megasite is planned to include feedlot capacity for 250,000 animals, a large-scale feed production plant and a TIF-certified slaughterhouse. (Sagarpa, December 8, 2013)
• Beverage: Soft drink bottler Coca Cola Mexico will invest US$1 billion in Mexico operations in 2014 despite a new tax on sugary drinks, the company announced.  Resources will go toward distribution infrastructure, fleet upgrades, promotions and product innovations. (El Financiero, December 3, 2013)
• Hotels: Spanish hotel operator Barceló plans to launch its first Mexico City location in 2014 at a cost of approximately US$120 million.  Mexico is the group’s largest market. (El Financiero, December 30, 2013)
• Rail transport: Mexican mining and railroad conglomerate Grupo Mexico plans investment of approximately US$2.8 billion over the next five years in support of its rail subsidiaries Ferromex and Ferrosur.  Projects include security upgrades, new rail lines and possibly participation in passenger rail line development proposed by the current government. (El Financiero, November 29, 2013)
• Infrastructure: Mexican national electricity monopoly Federal Electricity Commission (CFE) seeks to construct a network of 16 gas pipelines over the next four years, the agency reported.  The CFE is seeking private investment of approximately US$23 billion for the projects. (El Financiero, November 29, 2013)