Mexico in Brief
From Mexico in Brief Newsletter
AVANT ENERGY TO BUILD TERMINALS FOR PETROLEUM PRODUCTS.
Mexican company Avant Energy recently announced that it will begin the construction of a network of terminals that will supply refined petroleum products from the Port of Altamira in the Mexican State of Tamaulipas to the Bajío Region. The network is to be named SUPERA, and will initially have one marine terminal and one inland terminal, requiring an investment of approximately U.S.$200 million. Both terminals will begin construction during the third quarter of year 2018 and are set to begin operations before the end of year 2019.
PLACEMENTS ANNOUNCED BY MEXICAN CFE.
The Mexican Federal Electricity Commission, or CFE, recently raised around U.S.$846 million through the Mexican Real Estate Investment Trust Fibra E, specialized in Mexico’s energy sector. The money was raised with the placement of real estate trust certificates (CBFIS) issued through the Mexican Stock Exchange. Additionally, the CFE also placed a new depreciable bond in the Taiwan Formosa Market for an amount of approximately U.S.$727 million with a 30-year term and a 5% yield, and the proceeds will be used to finance projects of electric infrastructure.
VISTA OIL & GAS ACQUIRES ASSETS IN ARGENTINA.
Mexican energy investment firm Vista Oil & Gas will acquire oil assets for an amount of approximately U.S.$860 million from two Argentina companies. The assets include a fully operational oil & gas platform, proved reserves of 55.7 million barrels of fuel oil equivalent, and a daily production of around 27,472 barrels of fuel oil. With the acquisition, Vista Oil & Gas would become the fifth largest oil producer and operator in Argentina.
NEW PLANT FOR MEDLINE INDUSTRIES IN MEXICO.
U.S.-based Medline Industries, a manufacturer and distributor of healthcare products and solutions, announced an investment of more than U.S.$118 million to build a plant in the Mexican State of Baja California. The plant will manufacture surgical kits, medical devices, plastic injections and new products, and is expected to create more than 3,000 direct job positions, becoming the main manufacturing center for the company, and one of their largest worldwide.
BAIC TO BUILD FIRST MEXICAN PLANT IN 2020.
Chinese car manufacturer Beijing Automotive Industry Corporation (BAIC) is planning to build its first plant in Mexico with an investment close to U.S.$1 billion. The company is currently evaluating different locations for their first Mexican plant, which would begin construction in year 2020. BAIC entered the Mexican car sales market in 2016.
MEXICAN MINING COMPANY WINS TENDER FOR PERUVIAN PROJECT.
Southern Copper Corporation, a subsidiary of Mexican mining group Grupo Mexico, was awarded a contract to mine approximately 200,000 tons of copper in the Andean region of Peru. Said project is a result of a public auction for a transfer price of around U.S.$400 million and a royalty of 3% for the value of the annual sales.
SAFRAN KEEPS GROWING IN MEXICO.
French aeronautical company Safran recently opened a plant in the Mexican State of Queretaro that represented an investment of approximately U.S.$100 million. Such plant will manufacture fan blades and jet engines for Boeing planes, creating 230 local job positions, and is aiming to reach a capacity of 20,000 fan blades by year 2020. Safran currently operates 19 plants in Mexico and the company’s CEO expressed their intention to open more plants if the demand continues to grow.
NEW DATA CENTER BY KIO NETWORKS.
Mexican information technology company KIO Networks will invest approximately U.S.$30 million to increase its infrastructure with the purpose of meeting the interconnection demands of the companies located in the Mexican State of Nuevo Leon. With such investment, the company will open a new data center that will provide services to the Monterrey metropolitan area, and to other of its data centers in the Mexican State of Queretaro, Mexico City, Central America and Spain.
MEXICAN RAILWAY COMPANIES TO EXPAND THEIR CAPACITY.
Several railway companies will invest in infrastructure projects in Mexico this year in order to improve and upgrade their railway capacity; Ferromex and Ferrosur, both subsidiaries of Grupo Mexico Transportes, which will invest approximately U.S.$345 million for such purposes. Another investor will be Kansas City Southern de Mexico, with approximately U.S.$113 million, and Ferrovalle, with approximately U.S.$8.6 million.
MEXICAN GOVERNMENT WILL TENDER TWO TRANSMISSION LINES.
The Mexican Ministry of Energy (SENER) announced a tender for a transmission line of 1.5 GW that will connect the Mexican State of Baja California to the National Interconnected system, running for almost 870 miles. The proposals by bidders will be presented in July 2018 and the winner will be announced on September 14 this year. The tender, which has attracted the interest of 45 companies from Brazil, China, Colombia, India, Spain and the United States of America, will require an approximate investment of U.S.$1 billion. The Mexican Federal Electricity Commission, or CFE also recently launched the bidding terms for the first direct current transmission line with a capacity to transport up to 3,000 megawatts in 500 kV, requiring an investment of approximately U.S.$1.7 billion. The transmission line will transport the clean energy generated in the wind farms of the Mexican State of Oaxaca to the center of the country, and is expected to begin operations in year 2021.