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International News From the Field: Mexico, Brazil, and Latin America

Are inflationary pressures and the world’s challenges harming the economic growth of Brazil and Mexico? All signs point to no. It looks like a bright future is ahead for the two Latin American engines. For more industry intel and other tidbits, read on.
Oct 11, 2023

Brazil

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

  • WEG acquires the industrial electric motors and generators business from Regal Rexnord. With this acquisition, WEG will integrate a team of approximately 2,800 employees operating in 10 factories in seven countries (the United States, Mexico, China, India, Italy, the Netherlands, and Canada) and commercial subsidiaries in 11 countries. The net operating revenue of these businesses in 2022 was approximately $541.5 million, with an adjusted EBITDA margin of 9.5%. The acquisition aims to support WEG's growth in the global markets of motors and generators.

  • WEG and Petrobras have signed a strategic partnership for the joint development of a 7-megawatt (MW) onshore wind turbine, the first of its kind - and the largest - to be manufactured in Brazil. This project represents a significant milestone for Petrobras. It will not only enhance Petrobras’ knowledge of wind energy technology, but also contribute to the energy transition in Brazil in collaboration with a company renowned for its innovation in energy efficiency, renewable energies, and electric mobility. Petrobras will invest $26 million in the project, already underway by WEG. The agreement covers developing technologies for manufacturing wind turbine components – suitable for the country's wind conditions – as well as constructing and testing a prototype with technical and commercial counterparts for Petrobras. WEG predicts that the equipment will be able to be mass-produced starting in 2025.

  • The largest private industrial port complex in Latin America, Acu Port, will receive a $4.5 billion investment to strengthen operations, increase efficiency, and develop ESG solutions and innovations. Acu Port has the 3rd largest iron ore private terminal in Brazil, is responsible for 30% of Brazil’s oil exports, and is building the largest thermoelectric power park in Latin America, housing the largest offshore support base in the world.

  • The Gilbarco Group elevated the Gilbarco Veeder-Root Brasil Barueri plant to the status of a global brand manufacturer. In addition to continuing to supply the country and Latin America, the unit will also be able to export its products to other countries, such as the United States, Canada, and Puerto Rico. Driver for the decision was the proximity to Europe and the United States as well as its high scores in management aspects such as quality, safety, inventory control, and on-time delivery.

  • Caoa group began a new cycle of investments in the municipality of Anapolis. Over the next four years, $600 million will be invested to increase the capacity of its manufacturing plant.

  • Stellantis will invest $508 million in its Rio de Janeiro state plant within the next two years. The funds are earmarked for developing new products, research and development, and upgrading the plant's facilities, systems, and equipment.

  • Andritz Hydro will invest $60 million to install a manufacturing plant in Governador Valadares. The company aims to integrate the supply chain of electromechanical equipment and services for hydroelectric power plants and reduce environmental impact.

  • Sao Paulo state consolidated its position as the leading state in direct investments, receiving over $10 billion in the first two quarters of 2023.

  • Brazil unveils a $350 billion 'growth acceleration' plan in investments that will rely increasingly on public-private partnerships while driving a new ecological transition plan.

Mexico

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

  • Helvex announced a $15 million investment in machinery and new industrial processes for its plant in Guanajuato. The company expects to conclude this new investment cycle in 18 months.

  • Deacero announced an investment of $1 billion in the next three years to build a new plant. The investment includes acquiring new machinery and equipment to strengthen its Saltillo operations.

  • Matro announced an investment of $21 million to expand its current operation dedicated to designing and building dies, fixtures, and assembly devices.

  • Governor Miguel Ángel Riquelme Solís announced the arrival of Sunstrong International in Torreón, marking the 57th project so far this year in Coahuila. This $20 million investment will generate 500 new jobs for the La Laguna region.

  • Taiwanese Eco Electric & Machinery will invest $10 million in a new plant in Ciénega de Flores, where it will manufacture up to 150,000 low-voltage, high-efficiency engines annually. 

  • ELRAD Electronics Mexico inaugurated its new plant in Guanajuato. The plant will focus on manufacturing PCB assemblies for all electronic industries. ELRAD initially committed to an investment of $8 million. So far, they have invested $12.5 million in the operation.

  • Martinrea inaugurated its seventh plant in Coahuila and the second dedicated to stampings in the state, with an investment of $85 million.

  • Sunstrong, a global company with over 40 years of experience manufacturing electrical products and plants in China, Japan, Hong Kong, Singapore, and Vietnam, announced investments of around $20 million in its Torreon plant. Its investment will be a joint venture with Milwaukee Tool Torreon.

  • S-Riko recently hosted the grand opening of its plant expansion in the O'Donnell industrial park, Querétaro. An investment of $17.8 million has been made in the plant.

  • Brose announced a plan to build its fourth plant in Querétaro, which focused on producing automotive window systems. This investment will create between 600 and 700 jobs, with operations scheduled to begin in 2025.

  • Xusheng will invest $350 million and generate 1,200 jobs in its die-casting plant. It will be dedicated to producing precision aluminum alloy auto parts for the automotive and electromobility sectors. The plant is committed to being one of North America's largest aluminum components manufacturing plants.

  • Before Governor Samuel Alejandro García Sepúlveda, directors of Schneider Electric announced an investment of $40 million in Nuevo León. This investment will expand Schneider Electric’s Development & Innovation Center, adding experimental solar fields and electromechanical testing laboratories, as well as three-dimensional prototype design spaces and capabilities.

  • HNI Corporation Mexico in Saltillo will expand its Arteaga plant by investing $106 million and generating 1,300 jobs for the Southeast Region of Coahuila.

PicturePicture
Author
Achilles Arbex
Director, Global Services
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