Mexico continues to attract investors, though slightly behind the pace it set in 2023.
On Monday, the Economy Ministry (SE) reported US $48.3 billion in announced investments from foreign and domestic companies through July. Though significant, this figure represents a slowdown after companies made 52 investment announcements totaling US $25.84 billion between Jan. 1 and Feb. 29.
Still, when added to the US $110.7 billion in announced investment last year, Mexico is on pace to exceed US $190 billion in expected investment for the 2023 and 2024 calendar years.
The 166 investment announcements through July are expected to generate more than 75,000 jobs, according to the SE.
Approximately 53% of total announced investments (US $25.4 billion) are destined for the manufacturing sector, particularly the production of drinks (41%), automobiles (15%), auto parts (15%), iron and steel (10%) and electric components (2%).
Latest investment announcements in Mexico
On Monday, Artistic Milliners (AM) announced it would be investing 700 million pesos (US $36.7 million) to build a factory in the state of Coahuila.
This comes just one week after AM — established in Pakistan in 1949 and now one of the top denim manufacturers in the world — acquired a 10-acre, two-building complex from Dickies in Parras, Coahuila. The twin investments will allow AM to rapidly build out its Mexico operations over the next six months.
AM says it will hire 700 employees once the factories are operational, and expects to hire 1,500 people within a year while projecting that 3,000 jobs could eventually be created.
Coahuila Governor Manolo Jiménez Salinas reminded reporters that the textile industry has had a foothold in Parras for more than 100 years. “It is guaranteed that the products made here will be the best quality,” he said, adding that new investment announcements would be forthcoming.
Last week in the state of Guanajuato, Sinoboom formally launched its new US $150 million manufacturing project with a groundbreaking ceremony in the city of Silao.
Sinoboom — based in Changsha, China — makes a wide variety of boom lifts and heavy construction machinery. The company anticipates hiring 700 employees once production starts in the middle of 2025.
The Silao facility will produce slab and rough-terrain scissor lifts, articulating and telescopic boom lifts, as well as other products from the Sinoboom range. It is estimated that by 2028 the annual output will reach 20,000 units.
Chinese automaker reiterates plans to manufacture in Mexico
Auto manufacturer Chirey is one of four Chinese car manufacturers to announce plans to manufacture automobiles in Mexico, doing so in July 2022. On Sunday, the newspaper El Economista reported that company executives continue to visit potential sites for the plant, though a decision is unlikely before January 2025.
Stiff competition and U.S. threats to prevent Chinese-made vehicles from entering its market have not deterred Chinese manufacturers from making promises in Mexico.
Expansión magazine has pointed out that MG Motor, BYD, Great Wall Motors and Chirey have each announced plans to manufacture cars in Mexico, but have yet to build any plants.
When questioned by El Economista this week, Chirey officials declared they remain 100% committed to building a factory in Mexico.
With reports from Mexico Industry, La Jornada, El Economista, Expansión and Business Recorder
