France is bolstering its economic ties with Mexico by increasing investments in the energy, automotive and health industries, according to French Ambassador to Mexico Delphine Borione.
Speaking at the “France and Mexico: Allies Toward Sustainable Nearshoring” event, hosted by the Franco-Mexican Chamber of Commerce and Industry (CCI France Mexico), Borione highlighted recent announcements from French companies as evidence of France’s growing commitment to the Mexican market.
In the automotive sector, Paris-based Valeo has plans to spend US $800 million over the next five years to expand and modernize its operations in Mexico.
In the energy sector, green hydrogen giant Hydrogène de France announced an investment of US $2.5 billion in December 2023.
In the health sector, Sanofi recently confirmed an investment of US $50 million to expand its plant in Ocoyoacac, México state, where the company manufactures the probiotic Enterogermina.
“These investments reflect not only the commitment of French companies to the development of Mexico, but also their fundamental role in job creation, infrastructure development and technology transfer,” Borione continued.
Me congratulo por el anuncio de inversión de #Opella del grupo @SanofiMX 🇨🇵 con miras a crear un centro de producción de #Enterogermina en Ocoyoacac: un proyecto con impacto social y ambiental ++, junto con Secretarios @Edomex @delfinagomeza. ¡Otra cooperación de salud 🇫🇷❤️🇲🇽! pic.twitter.com/TOnnKk70JU
— Delphine Borione (@delphborione) October 4, 2024
While the ambassador acknowledged that Mexico brings great nearshoring opportunities, she said the country must address challenges including access to clean energy, appropriate infrastructure, sufficient water and human resources for the industries of the future.
Still, Borione said that Mexico is an “ideal candidate” for the relocation of multinational companies thanks to its strategic geographic position, its preferential access to the North American market, its robust industrial sector and the quality of its workforce.
Hajer Najjar, general director of the CCI, said that French companies are cautiously watching the political landscape in the United States and Mexico.
“Naturally, it is a challenging period as we do not know the impact that the elections in the United States and the situation of the reform of the judiciary will have on investments, but the companies that are already here are continuing their activities and growing,” Najjar said, adding that Mexico continues to provide the stability that investors are looking for.
Najjar also stressed that Mexico needs to support the development of sustainable finance. “We need investments that support innovative and sustainable projects. The creation of a financial framework that encourages responsible practices and collaboration between the public and private sectors is essential,” she said.
Finally, Brione said that France is the eighth-largest source of investment projects in Mexico, and that the embassy is fully committed to facilitating exchanges between Mexican and French stakeholders to strengthen bilateral economic relations.
This effort aligns with President Claudia Sheinbaum’s vision for nearshoring as a key driver of economic growth for Mexico.
With reports from T21 and Top Management
I am a retire employee of Sanofi R&D, actually Merial Animal Health. What a wonderful company and great partnership between Mexico and France.