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International News From the Field: Mexico and Brazil

Foreign investments continue to pour into Brazil and Mexico, spearheaded by such automotive companies as Toyota, Stellantis, and more. Semiconductors, HVACs, and steel production also see strong support. For more industry intel and other tidbits, read on.
Jun 18, 2024

Mexico

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

  • Seojin Mobility, a Korean global supplier of electric motors, will invest $160 million in the construction of a plant in Escobedo, Nuevo Leon.

  • Taxan, a Japanese manufacturer of electronic cards for the automotive sector, will invest $40.6 million in its San Luis Potosi facility.

  • South Korean LS Cable & System, one of the world’s largest cable producers, announced a $100 million investment in two new plants in Corregidora, Queretaro.

  • Ryobi Die Casting USA announced plans to invest $50 million in its aluminum die-casting plant in Irapuato, Guanajuato. This investment will add additional capacity to support future demand for the electric vehicle market in North America.

  • In Guanajuato, China’s Sailun and Leon-based Tire Direct reached an agreement to form Aztema with a co-investment of $430 million. The Chinese-Mexican joint venture will manufacture cutting-edge tires in the Castro del Rio industrial park in Irapuato.

  • Deacero will invest $600 million to build a new plant in Ramos, Arizpe. The site, called Ramos II, includes a new steel mill with a capacity of 1 million tons per year and a new high-tech rolling mill for structural profiles of up to 27 inches. Replacing imports will meet the national demand for long-term products.

  • With an investment of $50 million, BorgWarner has inaugurated its third plant in the state of Coahuila.

  • Schneider Electric has inaugurated its fourth plant in Nuevo Leon, with an investment of $29.4 million. The plant, called Monterrey 4, will specialize in serving the United States and Canada with solutions for high energy consumption in the medical sector, data centers, and other industries.

  • Teklas, a company dedicated to designing, developing, and manufacturing fluid systems for heating and cooling lines in the automotive industry, announced an investment of $8 million to expand its plant in Aguascalientes.

  • With an investment of $100 million, Sinbon Electronics laid the first stone of its new operational headquarters in Villa de Reyes, San Luis Potosi. The company will produce electrical components for the automotive and green energy sectors from an 84,000-square-meter plot of land in the Logistik III industrial park.

  • Mexico is in negotiations with more than a dozen companies from Taiwan, a leading country in the global manufacturing of industrial semiconductors, while the United States announced an alliance to strengthen North America’s development of these essential microcomponents for sectors such as the automotive industry.

  • Audi Mexico will invest $1 billion in its factory in Puebla to start producing vehicles with e-tron technology, such as hybrids and electric vehicles.

  • Grupo Lala, one of the largest dairy producers in the country, reported that during the first half of this year, it invested $51.1 million in innovation projects and the expansion of installed capacity, such as high-tech equipment.

  • Chinese company FengMei New Energy Automotive Technology announced an investment of $15.6 million to install a production plant in the Finsa industrial park in Aguascalientes. The new plant will be oriented to the electric vehicle segment, manufacturing high-voltage power distribution products for customers such as BMW, Volvo, Tesla, Nissan, Mazda, Toyota, Honda, Hyundai, Kia, VW, Rivian, and Stellantis.

  • QSM, a chip design company, will invest $12 million in the construction of the first silicon wafer manufacturing plant in Queretaro, seeking to put Mexico on the map for the manufacture of semiconductors used in various industries and to serve the North American market.

  • Evergo, a Dominican Republic-based manufacturing company, reported an investment of $200 million in energy-related manufacturing in Mexico in collaboration with BYD.

  • LT Precision, an industry leader in the design, fabrication, and integration of sheet metal products, announced a $143-million investment in capital equipment in Mexico.

  • Daikin, an HVAC manufacturer, announced an investment of $122 million in Mexico.


Brazil

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

  • Japanese automaker Toyota officially announced a $2.22 billion investment in Brazil, which includes the production of a new vehicle specially designed for the country's customers. Of the $2.22 billion, $1 billion is expected to be invested by 2026, with the remaining $1.22 billion expected to be invested by 2030.

  • Stellantis plans to invest a significant $2.74 billion to expand its Betim hub in Brazil. From 2025 to 2030, the automotive giant will enhance its facilities. An additional $89.09 million will be allocated to increase the production of high-efficiency, low-emission engines. These units will incorporate bio-hybrid technology, raising the output from 200,000 to 1.1 million annually.

  • Brazil’s steel industry has announced an investment of $20 billion to expand its production capacity and enhance the competitiveness of domestic products. This announcement follows several government measures designed to stimulate industrial growth and improve the economic landscape.

  • Imagem Automacao e Usinagem, which is dedicated to machining high- and medium-complexity parts, is investing in high-precision and high-performance CNC machining centers. Designed for highly complex operations, the machines have five simultaneous axes, a double pallet for loading/unloading optimization, and capacity for machining hardened materials. The investment addresses several demands, including new contracts with defense, aerospace, oil and gas, and other sectors.

  • Thyssenkrupp, a global leader in engineering and industrial technology, has announced an investment of approximately $25 million in its automotive operations in Brazil. The primary goal of this significant investment is to enhance the capabilities of the company's local plants to meet the increasing demand from automakers operating in the country. The investment will involve expanding production capacity at the plant in Pocos de Caldas, Minas Gerais, where the company manufactures valve camshafts, as well as increasing local content at the production unit in Sao Jose dos Pinhais, Parana, where the company produces steering systems.

  • Hanna Tools, a Brazilian manufacturer of special tools, continues to achieve good performance in the national and international markets. Over the last four years, the company, which is based in Limeira, Sao Paulo, has recorded constant growth in the double digits, and recently announced investments in new technologies available for the PCD market to increase competitiveness. Investments include laser milling and chip-breaking machines for PCD and CBN inserts, automated vacuum welding equipment, and scanning electron microscopes capable of scanning and making 3D images of the tools, including detailing the contouring, multitasking machines and four-axis vertical centers.

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Author
Carlos Mortera
Senior Director - Latin America
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