Mexico in Brief
From Mexico in Brief Newsletter
ALPEK TRANSFERS COGENERATION PLANTS.
Mexican petro-chemical company Alpek has sold two cogeneration plants in Mexico for approximately U.S.$801 million to British company ContourGlobal. This transaction represents the biggest sale ever for Alpek, who will use the proceeds from the same to pay an extraordinary dividend and reduce its debt obligations. ContourGlobal has already received the two plants and Alpek will continue to use the electric energy and steam of both plants.
NESTLÉ INCREASES INVESTMENT IN MEXICAN PLANT.
Swiss company Nestlé announced in December 2018 the construction of a new coffee factory in the Mexican State of Veracruz, set to begin operations in the last quarter of year 2020. The company has now recently increased the amount of investment for such plant to U.S.$200 million. In its first stage, the plant will create 250 direct jobs and 2,500 indirect jobs, reaching 1,200 direct jobs and 12,000 indirect jobs at the end of the five stages of the plant’s future expansion.
MEXICAN FINTECHS KEEP RECEIVING INVESTMENTS.
Japanese telecommunications and internet company SoftBank Group Corp. has invested approximately U.S.$100 million in Mexican Fintech company Konfío, which will use the funds to increase its working capital loans and introduce new products. Konfio also received U.S.$250 million in funds back in September, a part of which came from U.S.-based Goldman Sachs Group, which has also recently injected U.S.$125 million into the Mexican unit of Argentinian retailer Mercado Libre. The latter will use the funds to triple its working-capital portfolio in one year for enterprising companies that previously had no access to financing.
CHINESE INVESTMENT COMING TO NUEVO LEON.
Three Chinese companies have recently announced investments in the Mexican State of Nuevo Leon, which jointly sum up to approximately U.S.$160 million. China’s biggest furniture maker Kuka Home will build a sofa manufacturing plant for export to South America, this being its first production plant abroad. Holley Technology, a company that manufactures automation and electrical energy measurement systems, will begin a project that will be spearheading in 4.0 technologies. The third company investing in such State is Sunon, an office furniture manufacturer that holds more than 800 patents.
NEW FUEL STORAGE CENTER ANNOUNCED.
Port operator SSA Mexico will invest approximately U.S.$280 million in the construction of a fuel storage center in the Mexican State of Veracruz. The center is expected to begin operations by the end of year 2020, and will also serve as a distribution point for liquid energizers. The storage capacity of the new center will be over two million barrels.
GRUPO MEXICO INVESTING IN NEW WIND FARM.
Mexican conglomerate Grupo Mexico, through its infrastructure division, will invest approximately U.S.$250 million for the construction of a wind farm in the Mexican State of Nuevo Leon. The project will be developed by Invenergy, North America’s biggest independent company of renewable energy. The wind farm, expected to begin operations in 2021, will supply clean energy to several industries and will have a capacity of 168 megawatts, creating more than 500 direct jobs.
PEMEX INVESTING IN OIL ASSIGNMENTS.
State-owned Pemex will invest over U.S.$3 billion in eight oil assignments defined as priorities to increase national production. The eight assignments contemplate the drilling of 16 exploratory prospects and the performance of activities of seismic information processing and related exploratory studies. Five assignments have already been approved by the Mexican Hydrocarbons Commission, two off the coast of the Mexican State of Tabasco and three off the coast of the Mexican State of Campeche.
MEXICAN AIRPORT OPERATOR JOINS IN ON INFRASTRUCTURE PLAN.
As part of the Mexican government’s infrastructure plan, Mexican airport operator Grupo Aeroportuario del Pacifico, or GAP, announced a record investment of approximately U.S.$1.26 billion within the next five years for the expansion of current buildings and construction of new ones in the airports operated by GAP. A new terminal will be added to the airports of Guadalajara and Puerto Vallarta, and a new building for passenger processing will be developed in the Tijuana airport.
MEXICO LAUNCHES BILLIONAIRE INFRASTRUCTURE PLAN.
The Mexican government announced the first phase of a major infrastructure plan to boost the country’s economy for the next five years, which contemplates 147 highway, railway, airport, port and telecommunication projects. Private investment will be key for this first phase worth approximately U.S.$44 billion, with 72 projects set to begin construction in 2020. A second phase of this plan will be announced within the month of January and will be focused on energy and health projects.