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International News From the Field: Mexico and Brazil

Current global challenges could usher in a new era for Brazil and Mexico. What might this mean for their economies? It seems like the answer is nearshoring and heavy investment in various industries. For more industry intel and other tidbits, read on.
Nov 10, 2023

Mexico

For more information, contact Carlos Mortera (cmortera@AMTonline.org).

  • According to Deloitte, in the first half of 2023, Mexico ranked fifth among the G20 countries for GDP growth thanks to nearshoring, public investment in infrastructure, and private consumption. Moving forward, they predict manufacturing production could grow 5% per year and foreign direct investment 10%.

  • Jiaxipera will invest $60 million in its new Coahuila facility. With an annual output of 2 million compressors in its first phase, the company aims to produce 6 million units in its next phase. 

  • Grupo Ferbel, a Mexican company dedicated to the conversion of specialized vehicles, formed a strategic alliance with Singaporean company ST Engineering to establish a manufacturing center for specialized vehicles for civil protection and disaster rescue. In the first stage of the agreement, Ferbel will assemble the ExtremV vehicle's cabin with an investment of more than $100 million. 

  • Chinese company Xiamen Intretech Inc. will invest $210 million to install its new plant in Apodaca. The company specializes in the production of vision systems and flexible automation, among other products.

  • Hesai Technology, a Chinese provider of sensor technology and perception solutions for autonomous vehicles, is making an investment of $260 million in Nuevo Leon.

  • Tuopu, a supplier to Tesla, Volvo, Audi, BMW, Honda, and Volkswagen, will invest $710 million in Salinas Victoria, consolidating the region as an electromobility hub. 

  • Austrian company Gebauer & Griller announced the expansion of its plant in San Juan del Rio to increase its production of cables for light vehicles and high-voltage cable harnesses for electric cars.

  • POSCO International Mexico E-Mobility invested $100 million in its Ramos Arizpe facility to produce cores for electric car motors with an initial capacity of 300,000 units per year.

  • JL Mag, a Chinese company specializing in the production of magnets for electric vehicles, will invest $100 million in Salinas Victoria. The investment is expected to grow to $500 million in the medium term.

  • BALLUF, a company specializing in sensors and automation, is investing $53 million in its new 7,000-square-meter production plant in Aguascalientes. The new plant not only promises more efficient local production but also a positive impact on job creation. Currently, the plant employs 70 people which it projects to increase to 100 by the end of the year and 700 by 2027.

  • TaiwaneseTeco Electric & Machinery will invest $10 million to build a plant in Cienega de Flores, where it will manufacture up to 150,000 low-voltage, high-efficiency engines per year.

Brazil

For more information, contact Achilles Arbex (aarbex@AMTonline.org).

  • Castertech Fundicao e Tecnologia, a Randon company, expanded its partnership with the agricultural machinery and equipment manufacturer John Deere to include the machining and supply of tractor wheels. Production will be carried out on an assembly line implemented at the Castertech manufacturing unit in Caxias do Sul, which will have an annual production capacity of 60,000 units.

  • Atlas Copco will invest $60 million to install its new headquarters in Itu. The company's objective is to bring its factories, offices, and innovation and R&D centers, which are distributed across several locations in the state, together in a single location to maximize their R&D and innovation expertise and expand production capacity.

  • Suspensys, a leading manufacturer of axles and suspension components for commercial vehicles, will install a new factory in Mogi Guacu. The company aims to generate an additional $1.5 billion in revenue in 10 years with this new endeavor.

  • Boeing opened a technology and engineering center in Brazil with an aim to expand its global footprint and take advantage of expertise in a country it sees as leading sustainable aviation fuel production. The move comes more than three years after it pulled out of a billion-dollar deal to buy the commercial division of local aerospace corporation Embraer. Boeing sees both firms aligned in the goal of developing Brazil's aerospace ecosystem.

  • Three months after becoming an independent company from BorgWarner, Phinia – which brings together the Delphi, Delco Remy, and Hartridge brands – will receive an investment worth $10 million at the Piracicaba factory to improve productivity and capacity by adding new machinery and equipment. In 2024, the unit should receive another investment of $20 million.

  • Lwart Solucoes Ambientais will invest $250 million to expand the production park located in Lencois Paulista. The company, which is 100% Brazilian and specializes in waste transformation, is expected to increase the processing capacity of used or contaminated lubricating oils by 50% with the investment, going from the current 240 million liters per year to 360 million liters per year. When the new plant opens in 2025, Lwart will become the second-largest re-refinery in the world.

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Author
Carlos Mortera
Senior Director - Latin America
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