Last year’s G20 summit was held in Los Cabos, Mexico.

By Bill Trüb
From the January/February 2013 issue

Despite being hard hit by the 2008-2009 worldwide economic recession, which contracted the country’s GDP by 6.5 percent, Mexico remains the second largest economy in Latin America and 13th in the world. Last June, the proud nation hosted the G20 summit in Los Cabos, an undeniable vote of international confidence for Mexico, which boasts a 78-million strong workforce (2012) ranked by the World Trade Organization as the hardest working in the world in terms of profitability and number of hours. While income disparity is still being addressed, Mexico is widely classified as an upper middle-income country.

A global trade leader, more than 90% of Mexico’s exports thrive under free trade agreements with more than 40 countries. Positioned advantageously between the United States and Central America, and with large maritime borders on both the Pacific and Atlantic Oceans, Mexico has access to vast land- and sea-based trade routes that keep its commerce coming and going at remarkable rates. Its reach even extends further afield to the European Union, Japan and Israel.

The service sector accounts for roughly 70% of Mexico’s GDP, with the industrial sector occupying 25 percent and agriculture representing 4 percent. The country’s electronics industry continues to boom and currently ranks as the world’s sixth largest behind China, the United States, Japan, South Korea and Taiwan. Roughly 20 million foreigners visit Mexico each year thanks to a well-oiled tourism infrastructure, rich cultural events and famous stretches of beach.

In September, Pennsylvania-based Emerson and its InterMetro Industries business unit, a global leader in storage and productivity enhancing systems, opened a new manufacturing and assembly facility in Ciudad Acuña in the Mexican state of Coahuila. The site will produce a wide range of polymer storage and technology products designed for the food service, commercial and healthcare markets.

Emerson invested $22 million to construct the 220,000-square-foot facility in Amistad Business Park. Approximately 200 people are expected to be employed once the facility reaches full capacity at the end of 2013. “Emerson made this investment because we believe Ciudad Acuña has a bright future ahead as a manufacturing location that enables us to meet global demand for our Metro storage products in a cost-competitive manner,” says Edward Monser, president and COO of Emerson.

Amistad Global Developers, the full-service real estate company which runs the business park now home to Emerson and InterMetro, has developed more than 18 million square feet of industrial and corporate space throughout Mexico, including the states of Chihuahua, Guanajuato and Sonora, among others.

Luvata, a world leader in metal solution manufacturing, broke ground in 2012 on a coatings plant in Ramos Arizpe, Mexico. The multi-million dollar lease and construction project will occupy 57,000 square feet. Luvata CEO John Peter Leesi says, “Our new location in Amistad’s Ramos Arizpe park complements its sister facilities in Monterrey and Juarez in meeting the growing needs of our customers in Mexico.”

Last summer, Amistad welcomed automotive manufacturer Yorozu to central Mexico. The Japanese company purchased 70,500 square meters of land and has invested more than $70 million at the industrial site. Yorozu will produce shock absorbers for Honda vehicles.

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Honda Big Red SxS (Photo: powersports.honda.com)

Honda of South Carolina Mfg. Inc. (HSC) has announced that it will add production of Honda’s next generation of side-by-side (multi-utility vehicle) products in mid-2013 at its Florence County plant. The $27 million investment is expected to generate more than 65 new jobs.

“Adding the new side-by-side production demonstrates the confidence Honda top management has in our associates and their capabilities to produce these new vehicles,” said HSC Plant Manager Scott McKenzie.
Honda side-by-side production will transfer from Honda de Mexico S.A. de C.V. (HDM) to HSC. Based on the potential for increased production and future expansion at HSC, along with plans to expand the side-by-side dealer network throughout the U.S. in 2013, the company determined that HSC was the right location. Following the move of side-by-side production, HDM will increase capacity for the production of additional two-wheel products to meet growing market demand in Mexico.
“We are excited that Honda has chosen to invest $27 million and create more than 65 new jobs in Timmonsville. When a world-class company like Honda increases its footprint here, it shows that South Carolina is the right place to do business,” said Gov. Nikki Haley.

Since January 2011, South Carolina has recruited more than $7 billion in capital investment and more than 18,000 jobs in the manufacturing sector.

“We’re very fortunate to have another flagship industry decide to expand here,” said state Sen. Hugh K. Leatherman Sr. “It is evident that Florence County continues to be a competitive and desirable location for manufacturers.”

Florence County Economic Development Partnership Chairman Dr. Charles Gould said, “Honda’s presence in Florence County has been and will remain incredibly significant. They have been one of our largest employers for quite some time and the epitome of an outstanding corporate citizen.”

As with other Honda plants in North America, the Timmonsville plant has undergone continuous innovation over the years to maintain flexibility and efficiency.  In the second half of 2013, HSC will be ready to begin production for a new generation of Honda side-by-side.

“The Timmonsville plant has established a strong foundation in South Carolina by continually improving our plant operations in order to exceed the expectations of our customers,” said Brian Newman, president of Honda South Carolina. “The addition of this new product will allow the Timmonsville plant to grow its commitment to the great state of South Carolina by investing in new expansion, tooling and new jobs for this area. Production of the side-by-side also will benefit the region by increasing the volume and range of parts purchasing from domestic suppliers.”

Honda South Carolina Mfg. employs more than 850 associates. The plant began production of the four-wheeled Honda FourTrax ATV model line in 1998. In fall 2000, operations expanded to add engine production to the plant. The Timmonsville plant’s production line has the capacity to manufacture a quarter of million vehicles and310,000 engines per year.

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The Amistad Group has developed projects in Mexico for more than 100 industry leaders.From the July/August 2012 issue

If you’ve looked across the industrial landscape of Mexico in recent months, you’ve found a bevy of successful and productive new facilities in several key manufacturing sectors. Here are just a few examples:

• Metaldyne’s Sintered Products business unit in Ramos Arizpe received a Certificate of Excellence from General Motors, awarding the plant the highest honor of gold supplier status. GM cited Metaldyne’s “outstanding on-time shipping performance” and “dedication and commitment to consistently perform about expectations.”
• Leoni, the specialist in wire, cable and wiring systems, has a production facility in the Mexican state of Durango which employs close to 1,000 people. The plant supplies cable harnesses to US commercial vehicle manufacturers.
• La-Z-Boy, maker of iconic armchair recliners, is ramping up its manufacturing facility in Ramos Arizpe, near Saltillo in the northern Mexican state of Coahila.
• Magna International produces world-class sheet molding compounds (SMC) at its plant  in Saltillo. Magna’s SMC manufacturing process is fully automated to ensure the measurement of raw materials for each batch is consistent.
• There is a common thread in all of this new facility activity—a powerhouse known as Amistad Industrial Developers, based in Acuna, Mexico.

Amistad took form in 1978 in Ciudad Acuña, Coahuila. Now, less than 30 years later, the company has constructed more than 15 million square feet of industrial space for a client family that includes over 100 world-class companies that have generated, both directly and indirectly, a total of 255,000 jobs.
Mexico’s manufacturing industry has changed during that time; accordingly, Amistad has changed—in all the right ways. Amistad, still family owned and operated, has grown to enjoy a presence throughout much of Mexico, and it is poised for further expansion, nationally and internationally.

Amistad calls itself “Your One Source to Mexico,” and with good reason. The concern offers a full slate of services in real estate, construction and manufacturing.

The Amistad Group has been successfully participating in the establishment of multi-national companies for the past 33 years. Amistad’s parks and sites are located in major business points in Mexico.  Its success goes along with one gratifying statistic: 72% of Amistad’s business is generated by repeat business.

Amistad’s parks and sites are located in the states of Coahuila, Nuevo Leon, Sonora, Chihuahua, Texas, Queretaro and Guanajuato with additional on–going developments elsewhere in the country. The company’s impressive portfolio includes Our Portfolio includes:  Emerson, Yachiyo, Michelin, Honeywell, Lear, Howmet, Alcoa Fastenings, Parkway-Hamilton Sundstrand, La-Z-Boy, Lennox, Saint Gobain, Johnson Controls, Alcoa, Leoni, Magna and Martinrea.

Amistad’s Real Estate Division offers its clients a full range of real estate services, including:

• World class industrial parks
• Site selection evaluation
• Green site acquisition and developments
• Built-to-suit facilities for Lease or Sale
• Lease Buy Back Options
• Complete service package

Amistad’s Construction Division has built more than 18 million square feet of industrial buildings over the last 30 years throughout the Republic of Mexico. The company’s complete turn-key package of services includes:

• Site Selection
• Design & Architecture
• Engineering
• General Contractor For Total Project Management
• HVAC
• Mechanical
• Full Time on site Project Leaders

Amistad’s Manufacturing Services allow the customer to start up and operate a production facility in a shorter period of time, and its different programs provide the flexibility to choose how you want to operate. A staff of bilingual professionals can help you evaluate your options and assist your decision-making team with extensive demographic data from all regions of the country. The company provides legal services, human resources, accounting, Import/Export expertise and administration.

Amistad can be contacted at United States: 1-800-994-9596 or in Mexico: 01-800-849-7909 www.amistadmexico.com, and Info@amistadmexico.com.

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