Spain’s Iberdrola to Build Cogeneration Plant in Mexico

laht.com

MADRID – Spain’s Iberdrola said on Monday it signed a contract with petrochemical company Dynasol to build a 56 MW cogeneration power plant in the northeastern Mexican state of Tamaulipas.

The cogeneration plant will cost 1.3 billion pesos ($84 million), Iberdrola said in a statement.

Cogeneration is a process that simultaneously produces both electricity and heat from one fuel source, such as natural gas, making use of heat that would otherwise be lost.

The deal is part of an expansion strategy in Mexico, where plans call for investing up to 78 billion pesos ($5 billion) in generation projects over the next few years, the Spanish company said.

Iberdrola, Spain’s largest power company, operates in Britain, the United States, Mexico and Brazil.

AT&T Inc. Completes Acquisition of Nextel Mexico

att.com
go to original
May 4, 2015

banderasnews.com

On the heels of purchasing Iusacell, AT&T has completed its acquisition of Nextel Mexico. AT&T will merge Iusacell and Nextel into a single company to create the first-ever 'North American Mobile Service Area.'

Mexico City — AT&T has completed its acquisition of companies operating under the name Nextel Mexico from NII Holdings, Inc., including spectrum licenses, network assets, retail stores and subscribers in Mexico, for $1.875 billion, less approximately $427 million of net debt and other adjustments.

Earlier this year, AT&T acquired Mexican wireless provider Iusacell. AT&T will integrate Iusacell & Nextel into one company focused on bringing more choices, better service and faster mobile Internet speeds to more locations throughout Mexico.

AT&T plans to create the first-ever 'North American Mobile Service area,' which will cover more than 400 million consumers and businesses in Mexico and the U.S.

Thaddeus Arroyo, Chief Executive Officer for AT&T Mexico, LLC and Iusacell, will lead the combined company.

Mexico is the second-largest economy in Latin America and has a growing middle class. This economic strength, combined with Mexico's close geographic, economic and cultural ties to the U.S., make it an attractive place for AT&T to invest.

AT&T's acquisition of Nextel Mexico was approved by the U.S. Bankruptcy Court for the Southern District of New York, which is overseeing the restructuring of NII Holdings. It was also approved by Mexico's telecom regulator, Instituto Federal de Telecomunicaciones.

Swift action by IFT, aided by recent regulatory reform by the Mexican government, has created a positive climate for AT&T to invest significantly in Mexico.

Original article

Costco Opens in Culiacán: Mazatlán Next?

by Maureen Dietrich
30 Apr 15
mazmessenger.com

Costco inaugurated its 34^th store in Mexico yesterday in Culiacán with an investment of 40 million dollars. The store will employ 300 people directly and 500 indirectly.

At the opening attended by government officials, businessmen and tourist associations, the President of Costco México, Jaime González, said they are talking about future plans to open a store in Mazatlán and with luck it will happen soon.

(from Noroeste)

Carlos Slim Attends Road Inauguration

by Maureen Dietrich
30 Apr 15
mazmessenger.com
 

Carlos Slim went almost unnoticed on the VIP platform.

Not everyone knew he would attend the inauguration yesterday of Mazatlán’s Libramiento bypass road along with the President of Mexico, Governor of Sinaloa and Mayor Carlos Felton.

In fact, he went almost unnoticed on the VIP platform until Governor Mario López Valdez mentioned in his speech that he was proud to be in the company of men such as Carlos Slim.

And suddenly all eyes were on the wealthiest man in Mexico, second richest in the world, dressed in an open neck shirt sitting between the President and Mazatlán Mayor.

Media reported that he did not speak to anyone and kept a low profile.

Slim attended the inauguration most probably because his company Grupo Carso has the concession for the bypass toll road.

Grupo Carso also holds the concession for the Mazatlán-Durango autopista toll road.
Mayor Carlos Felton announced recently a proposal on the part of Acuario Inbursa to acquire Mazatlán´s aquarium. Acuario Inbursa is also owned by Carlos Slim.

(from Noroeste)

BlackRock to invest in Mexico’s Infrastructure

theyucatantimes.com

BlackRock Inc , the world’s largest asset manager, is looking to invest in infrastructure projects in Mexico, according to sources familiar with the situation.

As Mexico has opened up to foreign capital in recent years, BlackRock’s infrastructure investment group sees an opportunity and is setting up a team of specialists to work out of its Mexico City office, said the sources, who wished to remain anonymous because they are not permitted to speak to the media on the record.

A BlackRock spokesman declined to comment.

BlackRock Chief Executive Larry Fink has declared his affinity for Mexico before. In a blog post on BlackRock’s blog last June, he wrote that Mexico City was one of his favorite cities and encouraged millennials to live there.

“Mexico is finally beginning to unlock its true potential as an economic powerhouse,” he wrote. “Over the next few decades, capital is going to flow more effectively in Mexico, the workforce will become better trained, and it will be easier and easier to do business.”





The Mexican government last year said it planned to raise 7.7 trillion Mexican pesos ($515.46 billion) in infrastructure investment through 2018, but in late January cut its 2015 budget by nearly 3 percent and shelved a $3.75 billion high-speed train tender as part of its austerity measures.

Earlier this month, Mexico’s Finance Minister Luis Videgaray urged the private sector to take a bigger role in billions of dollars worth of planned public works and the opening of the country’s energy sector, weeks after scaling back its own spending plans due to slumping oil prices.

BlackRock has an office with about 30 people in Mexico City as part of its iShares exchange-traded fund business, and is looking to hire investment specialists in Mexico’s infrastructure, the sources said.

The challenge for BlackRock is that many institutional investors, including private equity firm, KKR, are also looking to invest in infrastructure projects in Mexico.

A KKR spokeswoman declined to comment on Wednesday March 25th, 2015.

The sources would not comment on any specific infrastructure projects that BlackRock’s infrastructure investment group is considering. Most recently it has been focused on renewable energy projects in the United States.

BlackRock has an office with about 30 people in Mexico City as part of its iShares exchange-traded fund business (Photo: Yahoo)

 

In February 2015, the New York-based firm announced that a fund managed by its infrastructure investment group had purchased a 50 percent interest in a Deaf Smith County, Texas-based wind farm from EDF Renewable Energy, a power producer that has developed projects in Canada, Mexico and the United States.

BlackRock’s infrastructure investment group has $6 billion in invested and committed assets, $1.5 billion of which is in renewable energy, according to the firm.

Source: http://news.yahoo.com/

(REUTERS Reporting by Jessica Toonkel; editing by Linda Stern and Richard Chang)

México: A Preferred Place for Investors

by Murry Page
28 Apr 15
mazmessenger.com

According to a recent survey of 25 countries by the international consulting firm A.T. Kearney, México ranks number 9 of the countries in which investors want to put their money. México moved up from the 12^th position it held in last year’s survey. The survey revealed that México’s approval of major structural reforms boosted the confidence of investors.

The sectors of the Mexican economy that attracts more interest from foreign investors are mainly those related to structural reforms in the energy sector and telecommunications.

The advance in the rate of foreign capital entering the country is due to several circumstances, such as the strong industrial and manufacturing integration with the United States, as well as the monetary policy implemented in México for years.

Ricardo Haneine, partner at A.T. Kearney, said, “Monetary discipline is what has distinguished México and that has given stability and has enabled it to maintain and reduce the volatility that has been in currency markets by the strengthening dollar.”

The confidence index of foreign direct investment for 2015 from A.T. Kearney puts the United States in the lead, followed by China, United Kingdom, Canada,Germany, Brazil, Japan and France.
In the Americas, México is ranked fourth, after the United States, Canada and Brazil.

(from Televisa News)

Tata’s Jaguar Sees Mexico as Strong Option for Land Rover Plant

bloomberg.com

by Nacha Cattan

Jaguar Land Rover is considering building a plant in Mexico, following other luxury car makers lured by cheap labor and free trade agreements.

Mexico is a “very strong option” for Jaguar Land Rover to invest in, possibly more than $500 million, said Joseph ChamaSrour, Jaguar director general for the brand in Mexico.

“Three years from now it could be interesting to have a plant in North America, and Mexico would definitely be a very strong candidate because of the cost of labor, the logistics and the expertise of the whole supply network,” he said in an interview in Mexico City.

Jaguar, owned by India’s Tata Motors Ltd., would tread a well-worn path to Mexico, Latin America’s top vehicle producer, which has already wooed Germany’s premier luxury brands. Last year, BMW AG committed $1 billion to start turning out 150,000 cars in 2019, following Volkswagen AG’s Audi and Daimler AG’s Mercedes-Benz in deciding since 2012 to build cars in Mexico.

Earlier this month Toyota Motor Corp., the world’s best-selling automaker, said it will spend about $1 billion to begin producing Corollas in 2019 in Mexico, its first car factory in the country as it ends a self-imposed freeze on new plants following the financial crisis. Hyundai Motor Co. may also build a factory in the country, its managing director in Mexico said earlier this month, joining a roster of other Asian manufacturers including Nissan Motor Co. and Honda Motor Co.

Automakers are flocking to Mexico to take advantage of a low-wage yet highly experienced labor base, and export access to the U.S. and other countries through the North American Free Trade Agreement.

Land Rover’s Range Rover Vogue and Range Rover Sport are top sellers in the U.S. and could possibly be produced at a new Mexico factory because it would be tied to the U.S. market, ChamaSrour said. He didn’t rule out producing Jaguars at the plant.

How the nature of real estate in Mexico is changing

inman.com

by Vera Makarov

Apr 20, 2015

It is estimated that Mexico will reach 65 million Internet users this year. This is having a significant effect on the local real estate market. According to Lamudi’s own research, 82 percent of consumers now use the Internet in their real estate search process, as they move away from traditional methods and turn to desktops and laptops, as well as mobile devices, to search for properties.

In the last quarter of 2014, the number of online real estate queries in Mexico grew by 25 percent from 2013, according to Google Analytics. Although the desktop is still the preferred method for accessing the Internet, mobile is getting stronger.

In fact, 24 percent of real estate searches were carried out via mobile devices in the last quarter of 2013, increasing to 38 in the same period of 2014. As a result of the growing Internet penetration, people have more access to information, through websites and social media.

From my experience of the Mexican real estate market, this access is causing house hunters to become more specific and analytical in their search for property. The ability to reduce time and optimize each search through the filtration of location, property type and price, is encouraging consumers to move online.

Over half (55 percent) of the country’s population is 30 years old or younger, and it is this age bracket that presents the greatest opportunity for the local buying and rental markets.

Our research showed that Mexicans between 18 and 35 years old represent 52 percent of online real estate searches on the Lamudi website. Young Mexicans without the capacity to purchase property, but who want to move out of their childhood home, are driving the rental market, while those recently married or looking to settle down are taking the steps to buy their first property.

This young age group is embracing new technology as it becomes increasingly accessible, and they are encouraging the shift online for the ease and speed of finding a suitable property.

This shift does bring some challenges for the real estate industry. For agents, the difficulty is keeping up with the speed of the Internet. With an increasing number of people turning to classified sites, there is more pressure to provide real-time answers to the leads delivered by online service suppliers, such as websites and CRMs, via telephone and email.

According to the Asociación Mexicana de Internet, nearly half (46 percent) of Mexican Internet users have bought a product after seeing online advertising. This statistic highlights how imperative it now is for local real estate agents to have an online presence and to make use of digital media and mobile marketing to promote their services.

In my opinion, the future of the real estate industry in Mexico will be positively affected by this move online. However, the different players in the local real estate game — namely, agents, agencies, developers and portals — need to adjust quickly.

By ignoring the opportunities for online real estate, we’re immediately allowing our competitors to get ahead of the curve. Although the nature of Mexican real estate is changing, it is an exciting time to develop strategies to ensure a positive user experience online and educate the industry — both businesses and consumers — on the benefits of the combination of technology and real estate.

Vera is a tech and investment management expert with a keen interest in both emerging and developed markets. She is a Harvard Business School alumnus and also studied art history at Cambridge University, where she was a recipient of the prestigious Gates Scholarship. Prior to becoming general director for Lamudi LATAM, she worked for nearly three years as an investment manager for private equity fund Bamboo Finance, which specializes in low-income markets. Currently based in Mexico City, Vera leads the Latin American team, bringing her expertise in investing in developing markets to Lamudi Mexico. Visit Lamudi Mexico on Facebook.
Email Vera Markov.

Approval for eight Mexico solar projects

pv-tech.org

By Tom Kenning - 20 April 2015

  
The 220MW of projects will be constructed in Coahuila, Baja California Norte and Chiapas States in Mexico. Image: Esparta.

Joint ventures involving Spain-based energy company Aljaval have received electric energy generation approval for eight solar power projects with a combined capacity of 220MW.

In March and April, a joint venture between Aljaval and Mexico-based energy company Tecnoambiente received a generation permit from the Energy Regulatory Commission (CRE) as ‘small producer’ for six new solar power projects totalling 160MW in Coahuila and Baja California Norte States.

Another Aljaval joint venture with Spanish company TW Solar and Mexico-based Redes Diseno y Construccion S.A DE C.V. also received approval from the CRE in March and April as a ‘small producer’ for two new solar projects totalling 60MW in Chiapas State.

The projects have started with the Environmental and Natural Resources Entity (SEMARNAT) process to obtain impact assessment permits and grid interconnection agreements.

Construction for all the projects is expected to start at the end of the year and commisioning to begin in mid-2016.

Javier Mas Abad, Aljaval deputy director, told PV Tech that the PV projects being developed are part of a big pipeline in Mexico.

He said: “It is important to take advantage of the natural resources of the country that will provide energy at a competitive price and sustainably. We trust that Mexico it is going to be a big market for all these types of projects in the next years.”

Abad said the company is waiting to clear the last market regulations including clean energy certificates and operation of the spot market.

He said: “It would also be important to analyse the financing for all these projects in Mexico, because with the current price of energy, influenced by the low oil price and the good water year, it is complicated to obtain competitive financing.

“It is important to understand that the price of the energy will continue increasing over the next years and the PV projects are going to be competitive, as is happening in other countries without any subsidy.”
Abad added that Mexico is a big country with a high power demand that it is increasing year by year. This means solar will be a necessary part of the energy mix to fulfil the country’s requirements.

You May Say 'Hola' to Your New Car as Mexico Ramps Up Auto Production

nbcnews.com
By Paul A. Eisenstein

American motorists are used to driving imports. Brands like Toyota, Volkswagen and Hyundai account for a solid majority of the U.S. market. But before you say "konnichiwa," (hello) to that new Honda Fit you might want to take a closer look.

       

Most of the models sold by Japanese brands these days are actually built in North America — and a growing number of those are coming from plants south of the border. When it comes to automotive manufacturing, Mexico's production base is growing nearly as fast as China's. Most of that is earmarked for export, notably to the U.S.

Toyota this month announced plans to build its first major assembly plant in Mexico, at a cost of $1 billion. The company's North American CEO Jim Lentz said the new plant is part of a "strategic re-thinking of how and where we build our products."

       

Just last month, Volkswagen AG said it would invest $1 billion to expand its sprawling assembly complex in Puebla, a couple hours from Mexico City. And Ford Motor Co. is expected to soon announce a $2.5 billion investment to boost the capacity of its various Mexican operations, including two assembly lines and an engine plant.

       

A quick rundown of the list of major global makers reveals that few have not already begun investing in Mexico. Those who have yet to set up shop are racing to open up their first plants - a list including Toyota, Kia, Audi and Mercedes-Benz.
       

'Spectacular growth'

 

Even before the latest plans were revealed, automakers from around the world had committed to investing $20 billion in the Mexican automotive production base over the last five years, according to the Mexican Automobile Industry Association, or AMIA.

       

"The growth in production and in exports has been spectacular," Eduardo Solis, the trade group's president, said earlier this year. "The growth reflects the confidence the industry has in our country."

 

There are a variety of reasons why Mexico's auto industry is booming. Sales are on fire; local demand is increasing at almost double the rate of the U.S. automotive recovery. That said, Mexicans are expected to purchase less than 1.5 million vehicles this year, hardly enough to justify the huge spate of investments.
       

"The growth in production and in exports has been spectacular."

The bulk of the rapidly growing production base is targeted for export -- about 2.9 million of them this year, AMIA forecasts, with 70 percent headed for the U.S.   

        

Manufacturers benefit from extremely low labor costs, generally about $10 an hour for wages and benefits, or 20 percent of U.S. costs. But they also take advantage of the fact that Mexico has negotiated free trade agreements with 54 countries, more than any other nation except Israel.        

 

"Mexico is a great place to make a reliable investment," said President Enrique Pena Nieto as he helped Nissan dedicate its third assembly complex, in Aguascalientes, in November 2013.

 

Like the majority of the Mexican auto plants, it focuses on small vehicles which can become much more competitive thanks to low labor rates. Along with the Nissan Sentra, Mexican plants roll out models like the Honda Fit, the Volkswagen Golf, Chevrolet Cruz and, in a couple of years, the compact Toyota Corolla which is currently being assembled in Canada.
       

Change coming

 

But that is about to change. As part of a growing partnership between Daimler AG and the Renault-Nissan Alliance, the German automaker will help set up a second assembly line at Nissan's Aguascalientes plant. It eventually will produce both Mercedes-Benz and Infiniti models.

 

"Our biggest project yet, it takes our partnership to the next level," noted Dieter Zetsche, the Daimler CEO and head of the Mercedes brand, during a joint news conference held with Nissan's chief executive Carlos Ghosn.

       

Audi, meanwhile, is setting up a plant of its own an hour away from its mainstream sibling Volkswagen's facility in Puebla. The luxury maker is optimistic: "We may even double production" in the near-future, suggested Audi AG Board Member Berndt Martens during a tour of the partially completed site.

       

The launch of new luxury models has raised concerns about whether Mexican assembly plants can match the quality of lines in the U.S., Europe or Asia. But data from the likes of J.D. Power and other research firms has shown little to no quality gap.

 

And that means that the growth of Mexican auto imports will likely only to continue expand in the years ahead.

U.S. company plans 1st Mexico-built plane

 

Russian helicopters are among the aircraft on display at this week's fair.

factory in Mexicali

 

 

Mexico News Daily | Friday, April 24, 2015

mexiconewsdaily.com

 

 

Mexico’s first Aerospace Fair this week was the site for the announcement of another first: an airplane to be built entirely in Mexico.

 

United States aircraft manufacturer Spectrum Aeronautical announced it will invest US $300 million in a factory to build one of its executive jets. Construction will begin in two and a half years on the Mexicali, Baja California, plant, whose production is expected to be 200 aircraft per year, said Spectrum CEO Linden Blue.
 
The plane will be an executive model with up to eight seats and a maximum speed of 815 km/h.

During the fair’s opening ceremony on Wednesday, President Enrique Peña Nieto announced that Mexico’s goal is to be in the top 10 in aerospace investment by 2020. The country is currently No. 14 in terms of production and last year the industry generated exports valued at $6.4 billion. The 2020 target is $12.5 billion.

The president observed that aerospace export revenues have increased by 26% compared with 2012, making Mexico the sixth largest aircraft parts supplier to the United States, the world’s largest market, surpassing Brazil, China, Israel and Italy.

Peña Nieto noted there are over 300 aerospace companies in 18 states in Mexico, nearly five times more than there were 10 years ago.

To help meet the country’s growth target, Mexico’s state development bank had an announcement of its own.

Bancomext CEO Enrique de la Madrid said in a statement the bank plans be a part of the aerospace expansion through a financing program to help the industry take off. The new program will be similar to ProAuto, a joint project of the bank and several federal government agencies that provides credit to domestic auto parts firms that supply the auto makers.

De la Madrid said the automotive and aerospace sectors are priorities for the bank although it remains committed to expanding funding and support to all companies involved in manufacturing regardless of sectors.

More firms will be looking to grow because the bank expects a migration of production and investment from China to Mexico in the next few years.

“The reality that exists in Mexico is that the manufacturing sector remains the engine of exports and is an increasingly important player in the supply chain of North America, the world’s largest economic zone,” said the banker.

The Aerospace Fair wraps up tomorrow with an air show. It is being held at the air force base in Tecámac, State of México.
Source: Milenio (sp)
 

- See more at: http://mexiconewsdaily.com/news/u-s-company-plans-1st-mexico-built-plane/#sthash.42XJuW4N.dpuf

Mazatlan: The good times are back

www.examiner.com
Bob Shulman
April 13, 2015

Cruise ships will make 110 stops at Mazatlan this winter.

Mazatlan Tourism

 

Mazatlan is on a roll. A double-digit roll, actually.

 

That’s amazing, because just a few years ago, this veteran Mexican vacationland was in a slump. Too many beds, for instance, were going guest-less in the tropical palaces lining the city’s Pacific beaches. Bars and restaurants were feeling the pinch, too, as fewer and fewer jets were delivering passengers to Mazatlan’s international airport. Even worse, the only people on the city’s cruise docks were dockworkers, there being no cruise ships – that’s right, none – docking there.

 

So what happened to turn Mazatlan’s tourism business around? Like close to a 20 percent upturn in airport passenger arrivals. And a jump in hotel occupancy rates of better than 17 percent. What’s more, a whopping 110 cruise stops are on the books for the winter of 2015/2016, each expected to put an average of 3,400 shore-going passengers in Mazatlan’s shops, bars and restaurants for a day.

 

“We didn't just sit around hoping business would get better,” said the state’s Secretary of Tourism Frank Cordova. “We made a lot of changes to upgrade security and to dramatically improve the visitor experience.”

 

Officials have pumped more than US$50 million into tourism-related projects around Mazatlan over the past few years. You’ll see the results just as soon as you step off the plane at the city’s spruced up international airport – they spent US$8 million there alone -- or off the gangplanks on its renovated cruise docks.

 

Later, as you check out the 180 blocks of the town’s Historic District, you’ll see more of the investment at work as you mosey around hundreds of facelifted mansions, art galleries, sidewalk cafes, museums, jazz clubs, boutique hotels and even a restored neo-classical opera house.

 

Chances are you’ll wind up at the historic area’s crown jewel, the painstakingly restored Plaza Machado. Lined by trees and iron benches and on three sides by outdoor restaurants, the block-long plaza is the cultural center of the town, enjoyed by Mazatlecos and tourists alike – as it’s been for close to 200 years.

 

Hotel developers have been busy, too. Overnight visitors can now bunk down in some 13,000 rooms around town, just a shade less than the inventory of Mexico’s super-resort at Los Cabos and nearly twice the count of the Riviera Nayarit in the next state down the coast. What’s more, there’s talk of six new hotel-resorts on Mazatlan’s drawing boards, expected to be announced shortly.

 

Cordova noted it’s now a lot easier to get to Mazatlan, whether on newly opened highways from other parts of the country or on increasing numbers of jetliners landing at the airport. And in yet another project, a new road from the airport will shortly make it much faster to get to the main hotel zone.

 

Among other jaw-droppers awaiting future tourists will be a US$9 million “Sports City” planned to feature a professional football stadium with bleachers for 8,000 fans, an Olympic-size swimming pool and a skating rink. Rounding out the sports attractions will be three volleyball courts, a racquetball court and four multipurpose courts.

Goodyear expected to announce new factory

 

The company is nearly as famous for its Blimp as it is for tires.

 

Mexico News Daily | Thursday, April 23, 2015

mexiconewsdaily.com

 

A new US $550-million tire factory will be announced tomorrow in Mexico City, Reuters reported this morning.
 
Goodyear Tire & Rubber Company said last May it was planning a new consumer tire plant for North America to serve replacement and original equipment markets in North and Latin America. Initial production capacity was to be six million passenger and light truck/SUV tires per year.
The company declined to comment on the report of tomorrow’s announcement, which came from two sources familiar with the plans, Reuters said.

The factory is expected to be built in the state of San Luis Potosí and begin operating in 2017. It would be the company’s first in North America in 25 years, since it opened a factory in Napanee, Canada, in 1990.

Headquartered in Akron, Ohio, Goodyear has facilities in more than a dozen countries.
Tomorrow’s announcement would be the third in just over one week. Toyota Motor Corp. and Ford Motor Company last week announced assembly plants worth $1 billion and $2.5 billion, respectively.

Source: Reuters (en)
 

- See more at: http://mexiconewsdaily.com/news/goodyear-expected-to-announce-new-factory/#sthash.1ADaPlcc.dpuf

And now, Carlos Slim is in the Oil Business

theyucatantimes.com

Mexican telecom tycoon Carlos Slim, who is ranked by Forbes as the world’s second-richest man, reportedly established his own oil company, named Carso Oil & Gas, Mexican media reports said on Wednesday April 15.

The company was formed after shareholders of the subsidiaries of Slim’s industrial conglomerate, Grupo Carso, voted in February 2015 to merge Carso Infraestructura, Construccion y Perforacion and Condumex Perforaciones into Carso Oil & Gas.

According to a report released by the new company, its assets amount to 3.5 billion pesos (approximately 230 million dollars), which are placed in 17.7 million shares.

Mexican Billionaire Carlos Slim Forming Own Oil Company. (Photo: Google)

Earlier in an interview with Reuters, Slim said that he remains upbeat about the energy reform in Mexico, adding that up to 50 billion dollars should be injected into the sector.

Last year, Mexico completed a major overhaul of its energy sector, effectively ending the state monopoly held by state-owned oil company Pemex and opening the sector for private investors.
Right now, Slim’s core business is related to telecommunication markets in Mexico and Latin America.

Apart from the companies America Movil, Telcel and Telmex, Slim’s main assets include Grupo Carso, which currently controls a number of large-sized Mexican companies.

In January 2015, Slim became the largest shareholder in the parent company of the New York Times newspaper.

Source: http://sputniknews.com

Spanish consortium to build $477 mn power plant in Mexico

foxnews.com

April 16, 2015

EFE

A consortium formed by Spain's OHL Industrial and the SENER engineering group won a $477 million contract to build a combined-cycle power plant in the Mexican city of Empalme.

The power plant, which will use natural gas and have a generating capacity of 770 MW, is expected to go online in 2017, supplying electricity to northern Mexico, the companies said.
OHL Industrial and SENER will do the engineering work and provide equipment and materials, spare parts and special tools for the project.

The contract calls for the consortium to provide construction and testing services, as well as to put the plant into service.

An estimated 1,500 jobs will be created during the construction phase, the consortium said.
The Mexican Federal Electricity Commission, or CFE, awarded the contract for the power project.

OHL Industrial and SENER are working on other projects in Mexico, including two cogeneration plants for Cydsa and the TG-8 project at state-owned oil giant Pemex's Madero refinery.

EFE
 

Toyota is reportedly planning a massive, $1-billion investment in Mexico

businessinsider.com
Joanna Zuckerman Bernstein and Alexandra Alper, Reuters
Apr. 14, 2015, 6:59 AM


Toyota Motor Corp will spend $1 billion to build a car factory in the central Mexican state of Guanajuato, with plans to announce the investment on Wednesday, two sources with direct knowledge of the matter said.

The 200,000-cars-a-year factory will create about 2,400 direct jobs, one of the people told Reuters, declining to be identified because the plan is not yet public.

Reuters reported earlier that the factory – Toyota's first to build passenger cars in Mexico - would produce the Corolla compact car from the summer of 2019, ending a self-imposed three-year freeze on new investments.

President Enrique Pena Nieto will attend the announcement to be held in Mexico on Wednesday, the people said.

A Toyota spokeswoman in Tokyo said nothing had been decided.

Read more: http://www.businessinsider.com/r-toyota-to-invest-1-billion-for-new-mexico-plant-create-2400-jobs-source-2015-4#ixzz3XId6i35H

Analyst: Scotiabank Possible Buyer of HSBC Mexico Unit

Doug Alexander - Bloomberg
go to original
April 9, 2015

Scotiabank, with operations in more than 55 countries in Latin America, the Caribbean and Asia, is targeting Mexico, Peru, Chile and Colombia as countries offering the best growth potential.

Bank of Nova Scotia, Canada's third-largest lender, could be a potential buyer if HSBC Holdings Plc sells its Mexico operations, according to Gabriel Dechaine, a Canaccord Genuity Group Inc. analyst.

"Despite challenges associated with this business, we believe BNS would be an interested bidder," Dechaine said Tuesday in a note to clients, referring to Scotiabank by its ticker symbol. "Failing a turnaround of this business over the next 12 to 24 months, we believe senior executives at HSBC could consider selling."
HSBC Chief Executive Officer Stuart Gulliver is under pressure to break up Europe’s largest bank amid rising capital demands and a sluggish global economy. In a Feb. 23 earnings call, he cited Mexico as one of four potential markets the lender may exit.
Scotiabank, with operations in more than 55 countries in Latin America, the Caribbean and Asia, is targeting Mexico, Peru, Chile and Colombia as countries offering the best growth potential. Chief Executive Officer Brian Porter said in January that he's preparing the Toronto-based bank's Mexico unit to be a player in that country's "next round of consolidation."

Integration Risks

Scotiabank is the seventh-largest lender in Mexico with a 6 percent market share, Dechaine said in his note. He estimates HSBC Mexico could be worth about C$11.5 billion ($9.2 billion), based on 2.2 times price to tangible book value and a 20 percent takeover premium. That valuation would be 6 percent dilutive to Scotiabank's estimated per-share earnings for 2016, Dechaine said.

Buying the HSBC unit would increase Scotiabank's market share in Mexico to 13 percent, propelling it to a fifth-place ranking in the country, Dechaine said. A 10 percent-plus share is the "magic number" for improved efficiency and scale benefits, he said.

"Integration risks are a key consideration," Dechaine said. "The situation with HSBC Mexico may be even more worrisome, given issues the business has encountered in recent years."

Those issues include money-laundering fines, "troublesome" loans and deteriorating efficiency ratios, he said.

'Priority Markets'

Sharon Wilks, HSBC's Canadian spokeswoman, said the firm doesn't comment on analysts' speculation, as did Scotiabank's Diane Flanagan.

"We are focused on investing in our priority markets, including the countries of the Pacific Alliance," Flanagan said in an e-mailed statement. "This includes Mexico, where we recently announced a C$300 million internal investment."

Scotiabank's Mexico had 179.1 billion pesos ($12 billion) in loans at the end of January, according to data from Mexico's bank regulator. It's the fifth-biggest foreign-owned bank, trailing local units of Banco Bilbao Vizcaya Argentaria SA, Citigroup Inc., Banco Santander SA and HSBC.

HSBC's Gulliver said in the earnings call that Mexico, Brazil, the U.S. and Turkey represent "the biggest problems" in terms of underperforming operations.

"There are parts of the group that aren't offering a return that's anywhere near their cost of equity, and we're working on restructuring those," Gulliver said. "And there are no options in terms of that restructuring that we would not consider."

Original article

Mexico, First Reserve strike $1 billion energy investment deal

economictimes.indiatimes.com

MEXICO CITY: Mexico's state-run oil company and U.S.-based First Reserve are announcing a $1 billion deal to invest in the energy sector.

Petroleos Mexicanos says in a statement that the agreement covers potential projects including infrastructure, sea transport, cogeneration and processing.

First Reserve is a global private equity and energy infrastructure investment firm headquartered in Greenwich, Connecticut.

It said in a statement Tuesday that the two companies will invest in infrastructure projects throughout Mexico.

Last month, Pemex announced a $900 million deal with First Reserve and BlackRock in return for a 45 percent stake in a pipeline that will transport natural gas from Texas to Mexico.

Mexico passed a landmark energy reform last year opening up the sector to private investment for the first time in decades.


Read more at: http://economictimes.indiatimes.com/articleshow/46842562.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Toyota to build new Plant in Guanajuato, Mexico

theyucatantimes.com

Toyota Motor is planning new Chinese and Mexican factories, ending a freeze on plant construction to better compete against Volkswagen and other global rivals.

The Japanese automaker will make an announcement later this month.

It expects to spend some 150 billion yen ($1.25 billion) on the new facilities, opening them in 2018 in China and 2019 in Mexico. Together, they will boost Toyota’s annual production capacity by up to 300,000 vehicles.

These will mark the first new Toyota factories since a Thai facility that opened in 2013, when the company halted plant construction to focus on honing profitability.

The Chinese plant will be built in the city of Guangzhou, where Toyota has a joint venture with Guangzhou Automobile Group, and make the Yaris subcompact. It will churn out up to 100,000 cars a year. Eyeing the growing demand for autos among the middle class in China, Toyota aims to raise its market share there from 4% by offering more small cars.

Toyota will make the Yaris subcompact at the new Chinese plant (Photo: nikkei)

In Mexico, Toyota’s factory in the state of Guanajuato will have a maximum output capacity of 200,000 cars a year. The plant will operate around the clock, building a new version of the Corolla sedan for North America. A Canadian factory that now builds Corollas will instead make bigger vehicles. Toyota sees low Mexican production costs helping it achieve more competitive pricing in the U.S., where it holds a 14% market share.

The new factories will require 40% smaller initial investments compared with 2008 outlays. Toyota has cut setup costs by reducing assembly line steps and using stripped-down production equipment. The new plants will be able to retool for different models in a few days, as opposed to nearly a month at older facilities. Such cost-saving adaptations should help them maintain profitability even when output drops sharply.

Until around 2008, Toyota had added 200,000 to 300,000 vehicles of new capacity a year, propelling its global expansion. But this buildup created fixed costs that left it exposed to the crash in automobile demand that followed the global financial crisis. Stung by a full-year operating loss, Toyota announced a three-year freeze on plant construction starting in fiscal 2013. It has since concentrated on boosting earnings capacity and has something to show for it: group operating profit for the just-ended fiscal 2014 is seen coming in at an all-time high.

Once the new factories are up and running, Toyota’s worldwide production capacity will reach 11 million vehicles.

Source: http://asia.nikkei.com/

Aeroméxico and Delta seek $1.5bn venture

 

A closer relationship. fotosdigitalesgratis.com

 

 

Mexico News Daily | Wednesday, April 1, 2015

   

The relationship between Mexican airline Aeroméxico and U.S. carrier Delta Air Lines will be significantly stronger if regulators approve a US $1.5 billion venture between the two.

Aeroméxico CEO Andrés Conesa said passengers will be able to reserve, buy and fly interchangeably between the two airlines under the new agreement. “The potential to combine and align our networks and scheduling will offer our clients a better product than what they’d get individually.”

 

Talks about a new partnership began in December but the two already have agreements for sharing lounges and check-in counters and swapping frequent-flier points.

The Mexican regulator Cofece signaled in November it would have a positive view for proposals for alliances because benefits for consumers in terms of fares and service have resulted from other such international accords.

However, Cofece chief Alejandra Palacios recognized the potential for detrimental effects on free competition and that its analyses will be detailed.

Conesa said both airlines would be able to operate more efficiently on their Mexico and U.S. routes for the benefit of customers. Mexican travelers should have better access to U.S. destinations, with the same for American travelers going south.

The two could also co-locate in airports and collaborate on marketing and sales.

Delta president Ed Bastian said Mexico is the most popular destination for its customers, who will have more schedule and destination choices.

The two airlines have been codesharing for some time on several routes, they have a maintenance, repair and operations agreement and Delta holds equity in Aeroméxico.

Sources: El Economista (sp), Bloomberg (en)
 

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