News, Insights and Best Practices for Manufacturing in Mexico

Nogales and Chihuahua both expanding economically

12 Mar 2014

Category: Manufacturing in Mexico, Politics & Regulations

Avent, a manufacturer of baby bottles and other products, is opening a new plant at Nogales, in order to take advantage of the opportunities to be found from manufacturing in Mexico, according to Mexico Now. Nogales Mayor Roman Guzman Muñoz was there at the opening ceremony along with Avent executives.

The plant cost $6 million and will employ 1,000 people.

The mayor was very happy with the new factory, which will bring jobs and the possibility of further foreign investment to the region.

"This is about more investments, to me it is very rewarding to get up on a Monday and come here, because this speaks about more employment and greater safety for our community. I want you to know that the City Council is there for you, to support you in everything we can and personally you can count on me as a friend," Muñoz said at the event.

Chihuahua also expanding
Nogales is located in Sonora, but another Mexican state that is seeing expansion is Chihuahua. It received $1.893 billion in foreign direct investment in 2013. Including indirect investments, that is about double what it received in the year previous. 

Most of the investments have come from the U.S., which totaled $1.920 billion, but other countries have made investments as well. Canada invested $289.6 million; Taiwan invested $83 million; Japan invested $37.9 million, and the Netherlands invested $14.8 million.

Of the U.S. money, $1.565 billion was related to intercompany accounts, while only $57.8 million were for new capital. The remaining $270 million consisted of reinvestment.

Mexico is expanding at a fast clip, and many companies like Avent are expanding to Mexico to take advantage of the skilled, cost-effective labor and easy supply chain management.


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