Billions of dollars are earmarked for electric vehicles and automotive components in Mexico and Latin America. Medical components, construction, and many more sectors see investments. For more industry intel and other tidbits, read on.
Mexico
For more information, contact Carlos Mortera (cmortera@AMTonline.org).
Nidec, the Japanese electric motor company, announced an investment of $715 million to build a new plant for transmissions for electric cars in Mexico.
Honeywell is investing $3 million toward expanding its operations in Nuevo Leon. The center was inaugurated in 2003 with the initial objective of fully operating the life cycle of the value chain for Honeywell's Aerospace business.
Ireland’s Mergon will double its production of air management systems and vision systems for electric vehicles in Mexico. As phase one of its project, the company is investing $15 million in the production of components for the automotive industry.
American tier-one supplier Lear Corp. will expand its production capacity for car seat covers in Zacatecas. The company announced a new investment of $8.2 million to expand the plant installed in the Morelos I Airport Industrial Park.
Daye, a Chinese company specializing in producing power tools and smart garden products, has begun the construction of its first plant in Salinas, Victoria, Nuevo Leon. The company will invest $120 million, and operations are expected to start in July 2023.
Dayco, a tier-two supplier of belts for light vehicles, announced that it will build its second plant in the state of San Luis Potosi with an investment of $11.5 million.
With an initial investment of $2.5 million, the medical device company Gilero inaugurated its new plant in Tijuana. Gilero is starting as a research and development center dedicated to designing, developing, and contract manufacturing, specializing in medical devices and drug delivery. The company also announced plans to invest an additional $4 million in this facility by 2024.
German company Grupo KOSTAL announced a new investment of $105 million to construct its third production plant in Queretaro to manufacture power electronics components for the EV market.
New automotive companies will arrive in San Luis Potosi by 2023. At least 20 automotive companies will come into the state, with a total investment of over $1 billion.
John Deere announced an investment of $55 million to increase its production in Nuevo Leon.
Costa Rica
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Medtronic announced an investment of $65 million to open its third plant in Costa Rica, which will manufacture surgical components for spine surgeries, including screws, nuts, and washers.
Bridgestone announced an investment of approximately $190 million to renovate and expand its tire manufacturing plant in Belen de Heredia, Costa Rica. This investment is in addition to more than $60 million planned for 2022-2026. The company will invest over $250 million over five years. Thanks to the new capital investment, the company can extend its facilities and increase its production capacity up to 36% by 2026.
Gener8, a company specialized in producing electromechanical instruments, established the first manufacturing factory outside the United States in Costa Rica. The 32,000-square-foot plant is located in the La Lima Corporate Center in Cartago.
Peru
For more information, contact Carlos Mortera (cmortera@AMTonline.org).
Credicorp Capital maintains its projection that Peru's GDP will grow between 2% and 2.5% in 2023. This is due to a lower copper price, accumulated inflation for the 2021-2023 period, a restrictive monetary policy, and the fall of public investment in the first year of new subnational authorities.
Direct investment from Chile in the last 20 years amounts to more than $6 billion through the execution of 134 investment projects in charge of 76 companies.
Guatemala
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Cementros Progreso developed the first prototype of a 430-square-foot house completely built with 3D printing.
Argentina
For more information, contact Carlos Mortera (cmortera@AMTonline.org).
The Australian company Fortescue announced an investment of $8.4 billion in Argentina to produce green hydrogen in the province of Rio Negro.
Neo Rodas, a Brazilian manufacturer of tires, will invest $50 million in a new plant located in Argentina to supply the auto industry in the country.
Colombia
For more information, contact Carlos Mortera (cmortera@AMTonline.org).
At a press conference in Bogota, businessman German Efromovich, known for having been the owner of Avianca, the largest airline in Colombia, announced that he will lead investments of $50 million in Hacienda La Gloria, an agro-industrial project in Colombia’s Cesar Department, to build a palm-based food factory and a biofuel refinery.
Brazil
For more information, contact Achilles Arbex (aarbex@AMTonline.org).
Brazil’s newly installed president, Luiz (Lula) da Silva, reinstated the Ministry of Development, Industry, Commerce and Services, which has the mission of fostering investment in the manufacturing industry and forging policies that facilitate access to resources while creating jobs. The ministry will be headed by Geraldo Alckimin, who indicated that he will emphasize supporting innovation and the Brazilian SMEs.
The Stellantis plant in Goiana, in Pernambuco state, has already produced more than a million vehicles since it started seven years ago. This plant is one of Stellantis’ most modern plants in the world. The manufacturing plant invested in more than 600 robots to produce Jeep’s Commander, Compass, and Renegade lines of vehicles. With a manufacturing capacity of 280,000 vehicles per year, they operate three shifts, producing 48 cars per hour. The plant is supported with parts and services provided by 34 suppliers operating in the automotive cluster’s vicinity.
The Manaus Free Trade Zone closed 2022 with 201 new industrial projects, accounting for a $1.5 billion in investments. Some featured projects are the Tec Toy pad for banking equipment, Digitron’s camera project for surveillance, and other media equipment.
The Brazilian motorcycle industry is moving toward its all-time best year in production. A total of 1,328,105 units were produced through November, the best result recorded since 2014.
Westrock is moving on with its $150-million investment plan by opening a new facility in Itupeva, Sao Paulo. The packaging company has enjoyed a significant increase in volume throughout the years and indicates a positive trend for consumption in the next year.
EagleBurgmann, a Freudenberg company, recently inaugurated its newest facility in Valinhos, Sao Paulo. With a $5 million investment, the company will increase the production capacity of high-precision metallic and sealing components.
John Deere announced $38 million in investments in its plants in Sao Paulo state. Resources will be directed toward the adoption of Industry 4.0, as well as increasing the efficiency and quality of their manufacturing processes. The construction division is one of the drivers for the investment.
