Mexico in Brief
From Mexico in Brief Newsletter
ANOTHER MILLIONAIRE AWARD FOR DIAVAZ.
The Mexican natural gas and petroleum-focused company, Diavaz, has recently been awarded the bidding of an agreement of approximately U.S.$265 million with PEMEX, the Mexican state-owned petroleum company. The agreement regarding the operations of PEMEX’s offshore pipelines represents the second multi-million-dollar agreement awarded to Diavaz in less than two years. Furthermore, the company announced plans to install power plants in the Mexican State of Tabasco, which will reuse waste gas from nearby PEMEX facilities to reduce environmental pollution.
DIDI MEXICO INVESTING IN SAFETY AND DRIVER REWARDS.
One of the largest private transportation operators in Mexico, Didi Mexico, announced the investment of approximately U.S.$149 million in the country through 2022. The investment will help to improve the service to users -with an emphasis on safety-, as well as the development of reward programs for their more than 350,000 drivers. This will be the Chinese company’s largest investment since their arrival to Mexico in 2018.
ARCA CONTINENTAL INVESTING IN INNOVATION.
Arca Continental, the Mexican Coca-Cola producer and distributor, recently announced an investment of approximately U.S.$600 million for this year. From said investment, 50% will be destined to its operations in Mexico and the other 50% to its operations in the United States and South America. The fourth largest bottler by volume worldwide assures that the investment in Mexico will be destined to strengthen and innovate its production, distribution, and execution capacities.
NEW PLANT FOR ELECTRIC VEHICLES.
LG Magna e-Powertrain, the joint venture formed by LG Electronics and Magna International Inc., who is responsible for the manufacture of various electric vehicle parts, has begun the construction of their new plant in the Mexican State of Coahuila. This facility will have an investment of approximately U.S.$100 million, and will produce inverters, motors, and electric vehicles chargers. The plant is set to be finished by 2023 and is expected to create approximately 400 new jobs in its first stage.
AMAZON GROWS IN MEXICO.
The American multinational company focused on e-commerce, Amazon, will open three more delivery stations in the Mexican State of Nuevo Leon, as well as their first Recruitment Center. With these three new stations, the company will have a total of five delivery sites and will generate 1,500 new jobs. The new installations will have a space of approximately 3,000 to 10,000 square meters. Up to this date and since beginning operations in Mexico in 2015, Amazon has invested approximately U.S.$650 million.
FURNITURE INDUSTRY EXPANDING.
Chinese furniture manufacturer, Kuka Home, announced the extension of its facilities located in the Mexican State of Nuevo Leon, which will have an investment of approximately U.S.$150 million and will create 3,500 new jobs. On the subject regarding the furniture industry, the Swedish-founded, ready-to-assemble furniture company IKEA announced their plans to expand their online website and in-store sales, investing approximately U.S.$100 million in their second store in the Mexican State of Jalisco. Because of the global logistics supply problems, IKEA also announced that it will source from local suppliers, which will help to oversee their company’s transactions in South America in the near future.
RICOLINO’S BILLIONAIRE ACQUISITION.
The American chocolate and candy manufacturer, Mondelez International, has recently purchased Ricolino, a candy manufacturer subsidiary of the Mexican company Grupo Bimbo, for approximately U.S.$1 billion. This acquisition is an opportunity for Mondelez International to double its business size in Mexico, as in 2021 alone Ricolino had registered approximately U.S.$500 million in net sales. The American company will take over a business that currently employs 6,000 workers, has four distribution plants, and commercializes products in Mexico and 17 other countries.
NEW OPPORTUNITIES IN THE INTEROCEANIC CORRIDOR.
The Mexican Ministry of the Navy will oversee the tendering of four public work projects for the rehabilitation of the 787 kilometers of railway and the conditioning of 613 bridges in two railway lines linked with the Istmo of Tehuantepec Interoceanic Corridor. The two railway lines are already granted to the majority state-owned company, Ferrocarril del Istmo de Tehuantepec. However, the development of the 787 kilometers that surround the two railway lines will be tendered to at least three companies out of the nine companies that were suggested.