Mexico in Brief
From Mexico in Brief Newsletter
INVESTMENT IN VIRTUAL BANKS.
Citigroup’s primary U.S. banking subsidiary of financial services, Citi, has invested a total of approximately U.S.$466 million into Mercado Pago’s operations in Mexico and Brazil. The investment in the virtual banking platform has been earmarked to facilitate credit access for SMEs. The funding aims to enhance Mercado Pago’s lending capabilities, benefiting both countries' consumers, entrepreneurs, and small businesses.
DOUBLING ITS PRODUCTION.
Siemens Mexico, the Mexican operation of the German multinational technology conglomerate, is set to invest approximately U.S.$53 million over the next five years to expand production at its plant in the Mexican state of Queretaro. The primary goal of the project is to double the production of electrical technology to meet the growing demand of industries, cities, and infrastructure. This investment will be part of the company's commitment to sustainable growth and digital transformation.
WOODSIDE ENERGY: RECORD-BREAKING INVESTMENT.
The Mexican state of Tamaulipas has secured its largest investment in the oil and gas sector to date, with Australian petroleum company, Woodside Energy, finalizing its development plan for the Trion field, located off the coast of the state in the Gulf of Mexico. The project is estimated to have a value of approximately U.S.$11 billion. This region also boasts another of the top 10 agreements with the highest capital approved by the Mexican National Hydrocarbons Commission (CNH).
A NEW EXCITING TURN FOR FIBRA DANHOS.
The Mexican REIT, Fibra Danhos, which was traditionally focused on the shopping center construction sector, announced that it has an investment plan of approximately U.S.$421 million for its foray into the tourism industry and industrial parks. The vehicle has already made investments in Cancun, Quintana Roo for approximately U.S.$157 million, and has plans on opening more establishments in the south of the country.
DHL’S EXPANSION PLANS.
The German firm, DHL Supply Chain, debuted its new logistics center in Nuevo Leon, GAIA II, which is part of three stages of the company's expansion. GAIA II is part of an investment of approximately U.S.$547 million announced for the next five years for Latin America, of which a third corresponds to several states in Mexico, including Nuevo Leon. In the first stage of the expansion, the company will generate 1,000 jobs directly and indirectly and when the three expansions are ready, they will generate more than 2,000 jobs.
LOGISTICS GIANTS INJECT MILLIONS.
Logistics companies such as APM Terminals, Contecon Manzanillo, and SSA Mexico will invest approximately U.S.$361 million to expand and update their operations in various parts of Mexico. From said amount APM Terminals Mexico will invest approximately U.S.$140 million in the expansion of their maritime operations in Lazaro Cárdenas located in the Mexican state of Michoacan. Specifically, the port in Michoacan will increase its capacity to become the first semi-automatic terminal in Latin America, aiming to become a hub port for Latin America.
MILLIONS TOWARDS SUSTAINABLE MOBILITY.
The Colombian company specializing in sustainable mobility solutions, Auteco, will channel investments to Mexico for approximately U.S.$103 million for the marketing and production of electrical units in the country, during the next four years. From the total investment plan, half of the amount has already been allocated to market research and development, and approximately U.S.$2 million will be channeled for the opening of four points of sale and service, with plans to open between January and June of 2024.
STARLINK’S NEW BILLION-DOLLAR CONTRACT.
Starlink, the U.S.-based connectivity company, won a new contract with the Mexican state-owned electricity company, CFE, to enable satellite internet in remote parts of the country where these services have not yet been available. The satellite internet services agreement has a minimum value of approximately U.S.$40 billion and a maximum amount of approximately U.S.$90 billion. Starlink’s services service began on October 30 of this year and will be effective until December 31, 2026.
THE ONGOING FRUITS OF NEARSHORING.
More than approximately U.S.$3 billion have been invested in the construction of 50 areas for the installation of factories and distribution and storage centers for companies attracted by nearshoring in the state of Nuevo Leon. During the first three quarters of 2023, there have been approximately 5 million square meters destined for companies brought by nearshoring, and the 50 new industrial parks will add more than approximately 8 million square meters in the coming years. It is expected that by 2027 the state of Nuevo Leon will have a demand that supersedes approximately 6 million square meters for industrial parks.