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Energy
Unión Fenosa To Invest USD 600 Million Through 2012
March 28, 2006
Spanish power firm Unión Fenosa plans to invest USD 600 million in Mexico through 2012 to increase power generation capacity 500MW. The company has invested USD 1.2 billion to date in the country. It will participate in the upcoming bidding process for the contract to CFE's Manzanillo regasification project.
Pemex Starts Operations Of Minatitlán Hydrogen Plant
March 30, 2006
Pemex has started operations at the USD 14 million hydrogen recovery and purifying plant in its Minatitlán refinery in Veracruz state which will make company facilities self-sufficient in hydrogen. The hydrogen plant is part of a USD 2.3 billion project to revamp Minatitlán to raise processing capacity by 150,000 barrels a day (b/d) of heavy crude to 320,000b/d.
Calpine Agrees To Sell Its Stake In Mexico Power Plant
March 29, 2006
Bankrupt U.S. power company Calpine has agreed to sell its 45% interest in the 525MW Valladolid III power plant, currently under construction on the Yucatan Peninsula. Calpine plans to sell its equity interest to the two remaining partners in the project, Mitsui & Co. and Chubu Electric Power Co. for USD 43 million. The transaction is expected to be completed in the next 30 days.
CFE In Talks With Firms Ahead Of LNG Terminal Tenders
March 29, 2006
CFE said it is in final talks with companies ahead of opening tenders for the construction and supply of a liquefied natural gas terminal at the Pacific port of Manzanillo. Firms interested in the contract to build the USD 430 million terminal reportedly include Royal Dutch Shell and the U.S.'s Sempra Energy, while Peru is said to be the leading candidate for the supply contract.
Ensenada Approves IPWG Waste-To-Energy Project
March 27, 2006
The mayor of Ensenada has initially approved U.S.-based International Power Group's waste-to-energy plant project. The project entails building one plant in the town of La Misión and a second in Vicente Guerrero. The company anticipated the revenues generated from the La Misión plant could exceed USD 300 million in its first full year of operation.
Tanker Goes Down In Gulf Of Mexico
March 29, 2006
A Mexican tanker carrying 950 tons of heavy fuel oil sank in the Gulf of Mexico, but there was no initial spill, officials said. The Orion, which belongs to Empresa Naval Mexicana, went down about 190 miles off Puerto Progreso on the Yucatan Peninsula. Five members of its crew were rescued, while three others are still missing.
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Mining
Chile Steel Maker Cap To Buy Imsa's Chilean Unit
March 31, 2006
Cap, Chile's only integrated steel manufacturer, will acquire Grupo Imsa’s Chilean assets for about USD 39 million. Cap indicated the acquisition is subject to a complete due diligence, which could result in a price adjustment. Imsa Chile, through a subsidiary called Instapanel, produces about 60,000 metric tons of steel panels and other products a year.
Ternium Could Move To Acquire Imsa
March 30, 2006
Steel group Ternium said that if Imsa Acero, a subsidiary of Grupo Imsa, goes up for sale it would consider buying it. In November, Ternium had sought to purchase Grupo Collado, a steel product services and distribution company, but the two sides failed to reach an agreement.
La Caridad Copper Mine Strike Continues
March 30, 2006
A strike at Mexico's second-largest copper mine continued for a seventh day as the National Mining and Metal Workers Union remained in dispute with the government over the union leadership. The union and other labor groups have threatened to carry out a nationwide strike on April 19 in defense of union autonomy. La Caridad owner Grupo Mexico says the walkout is illegal and that it's calling on local authorities to restore access to the mine.
Endeavour Raising USD 19 Million For Projects
March 30, 2006
Endeavour Silver has arranged a private placement of 5 million special warrants at CAD 4.50 each for gross proceeds of USD 19.4 million to fund acquisitions, exploration and development of projects in Mexico. Endeavour believes an expansion underway at its Santa Cruz silver mine in Durango will propel it into the ranks of the top five primary silver producers.
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Trade & Investment
Mexico - Japan Trade Hits Record High In 2005 After FTA
March 30, 2006
The two-way trade between Mexico and Japan hit a record high in terms of value in 2005, helped by a free trade pact which came into effect last April. In 2005, the trade sum between the two countries totaled USD 9.48 billion, up 28.95% from USD 7.35 billion in 2004. The agreement has also helped to accelerate Japanese investment in Mexico, which totaled USD 1.1 billion last year and another USD 950 million in the first two months of this year.
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Banking & Finance
HSBC Buys 20% Share In Financiera Independencia
March 31, 2006
HSBC Mexico said it would pay USD 65 million for a 19.99% stake in Financiera Independencia, one of Mexico's leading companies in the sub-prime consumer loans market. The transaction is subject to a number of conditions, including regulatory approval. Financiera Independencia reported earnings of MXN 209 for the first nine months of 2005.
HSBC Calls Off MXN 4 Billion Debt Sale
March 28, 2006
HSBC Mexico called off the sale of USD 364 million in securities due to adverse market conditions. The bank had planned two issuances of securities for up to MXN 3 billion and MXN 1 billion with maturities of seven and 10 years, respectively, under a larger securities program.
Grupo Ángeles Moves Closer To Acquiring Mutual Fund Operator
March 27, 2006
Grupo Ángeles moved a step closer to entering the mutual fund industry by filing a prospectus to acquire up to 100% of financial services group Multivalores Grupo Financiero through a public tender offer. The group said it plans to ask the Finance Ministry for a banking license and authorization to acquire insurance company La Peninsular Seguros, both of which could be merged into a financial group.
Banorte Plans To Double Microfinance Branches In 2006
March 27, 2006
Grupo Financiero Banorte plans to double the number of microlending offices it operates through its Pronegocio subsidiary to 100 by year-end. Banorte launched microfinance subsidiary Pronegocio in three cities last year under a pilot program and today has 48 branches.
IFC Studies Metrofinanciera Warehouse Credit Line
March 27, 2006
The International Finance Corporation (IFC) will on April 24 ask its board for authorization to grant a warehouse credit line to Mexico's fifth largest home finance company, Metrofinanciera. The loan is expected to be split into a USD 200 million revolving warehouse credit line provided by IFC and an investment bank.
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Business & Industry
Alfa To Invest USD 1.2 Billion In 06-08 To Expand Capacity
March 31, 2006
Mexican conglomerate Alfa plans to invest USD 1.2 billion over the next three years to expand capacity in its auto parts, petrochemicals and food operations. Alfa’s CEO Dionisio Garza Medina said the company is also considering the possibility of making acquisitions. Alfa has abundant cash after the sale last year of its steel unit Hylsamex to Techint.
Cemex To Spend USD 50 Million On Dubai Grinding Facility
March 27, 2006
Cemex announced plans to spend about USD 50 million to build a new grinding facility in Dubai to meet rising local demand. The plant, which will boost production capacity in the region to 1.6 million metric tons of cement, should be fully operational by mid-2007. The investment is part of the company's USD 500 million spending program for this year.
Lafarge To Start Up New Plant
March 27, 2006
French construction materials firm Lafarge is preparing to start up operations April 27 at its new USD 121 million gray cement plant in central Mexico's Hidalgo state. The new plant replaces the facilities that Lafarge had on the same site, where it was only able to produce 350,000t/y of cement. The new plant will be capable of manufacturing 600,000t/y.
Indonesia Says Lafarge Interested In Buying Stake In Semen Gresik
March 28, 2006
Lafarge has expressed an interest in buying a 25% stake in Indonesia's largest cement firm PT Semen Gresik from Cemex, Deputy State Minister for State Enterprises Roes Aryawijaya indicated. The newspaper Bisnis Indonesia said Lafarge already held talks with Cemex and its financial advisor JP Morgan on the possible transfer of ownership of the stake.
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Automotive
Russian Automaker GAZ Eyes Daimler's Mexican Unit
March 27, 2006
Russian automaker OAO GAZ is in talks to buy DaimlerChrysler’s Mexican unit, Saltillo Engine Plant, the Kommersant daily reported. The deal, which could total USD 300 million – USD 350 million, is linked to the possible purchase of Daimler's Brazilian production subsidiary Tritec by another Russian carmaker, state-owned OAO AvtoVAZ.
Collado To Open Subsidiary To Build Transport Structures
March 27, 2006
Mexican steel products, services and distribution company Grupo Collado will open a subsidiary during the second quarter to build metal structures for transport vehicles. The subsidiary, to be called Operbus, will build the bodies of passenger transport vehicles as well as trailers and semi-trailers for cargo.
Mexico Factory Blasts Rock Japanese Auto Parts Plant
March 31, 2006
A series of explosions at an assembly plant in the state of Coahuila forced the evacuation of thousands of residents near the industrial city of Monclova. The four blasts rocked a plant operated by Tokyo-based Takata Corp. that makes airbags and other automotive restraint systems. There were no immediate reports of injuries in the explosions.
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Construction, Housing & Mortgaging
Vulcan To Expand Mexican Quarry Production Capacity
March 29, 2006
U.S. producer of construction materials Vulcan said it is expanding and upgrading its processing facility at its Sac Tun quarry on the Yucatan Peninsula. The plant expansion will increase annual production capacity at the quarry to about 12 million tons from 9 million. The plant expansion is expected to be completed by mid-2007.
CICSA To Expand In Latin America
March 27, 2006
Mexican construction company CICSA has no plans to move into the booming home building market but does want to expand in Latin America, owner Carlos Slim said. He also indicated that CICSA was interested in energy and hydroelectric projects across the region.
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Retail
Femsa Plans Rapid Oxxo Retail Expansion
March 30, 2006
Femsa, Latin America's top soft drink and beer maker, plans to expand its Oxxo retail chain by almost two stores a day for up to six years to help drive sales of its Sol beer and Coke products. The company will also look to export the Oxxo format to other countries in the medium term. Last year, Femsa opened 675 Oxxo stores and this year's target is 650 new stores.
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Transportation
Authorities Shut Down Aerocalifornia Over Safety
April 2, 2006
Mexican aviation officials have suspended operations at Aerocalifornia after determining that the low-cost carrier failed to meet safety standards. The suspension follows several inspections by federal authorities beginning more than a year ago, when the airline was instructed to make a series of changes to improve operations. Authorities have given the airline an unspecified amount of time to correct problems in order to restart operations.
Toluca Airport Capacity Climbing To 4.1 Million Passengers
March 28, 2006
The federal government is investing USD 54.8 million in the second and third stages of the extension to Toluca international airport. The two stages of works, due to be completed in June, involve increasing the size of the terminal buildings to provide the capacity to handle 3.2 million passengers per year. A fourth phase of works is due to begin at the end of this year and will give it the capacity to handle up to 4.1 million aircraft passengers each year.
Private Sector Interest Growing In Tehuantepec Dry Canal
March 28, 2006
The Mexican government's project to develop a multi-modal dry canal across the Tehuantepec isthmus to compete with transoceanic traffic using the Panama Canal is progressing and Spanish firms OHL, ACS and FCC have expressed an interest in participating in the project. The federal government and state authorities in Veracruz and Oaxaca have outlined a plan involving USD 3.28 billion in investments in the rail and road corridor across the isthmus.
Fox To Launch New Port Development Model
March 31, 2006
President Fox is to launch a new model to develop port operations with pilot schemes applied in Coatzacoalcos, Tecolutla, Cozumel and Guaymas ports. The basic idea of the new scheme, called sustainable integrated coastal administration (ACIS), is to decentralize the administration of these port facilities and coastal areas to allow them greater powers to attract funds themselves and achieve the sustainable development of their operations.
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Telecommunications & Technology
América Móvil Loses Ruling On SMS Exchange With Nextel
March 29, 2006
América Móvil engaged in anticompetitive practices by preventing subscribers from exchanging text messages with NII Holdings customers, the antitrust commission said in an unpublished ruling that follows a complaint by NII Holdings’ Nextel that América Móvil’s refusal to connect to their network for text messaging kept a competitor from profiting from a growing market.
Slim Views Canada As Possible América Móvil Market
March 27, 2006
Carlos Slim said Canada is a suitable market for his mobile unit América Móvil. "Penetration is still low and there is significant range for growth," Slim said of both Canada and the U.S., adding that he "personally would love to [move into the Canadian market]." América Móvil currently operates in the U.S. with Tracfone, a prepaid phone card business.
Standard Register To Set Up Operations In Monterrey
March 29, 2006
U.S. printing and e-business solutions provider Standard Register plans to set up operations in Monterrey during the second quarter of 2006. SR sees the investment as a way to increase customer support to the 12 customers it has with manufacturing operations in Mexico. The company previously had operations in Mexico through a joint venture, which ended in late 2005.
Intel, Telmex Kick Off Low-Cost PC Effort
March 31, 2006
Intel has partnered with Telmex to sell an affordable PC designed for first-time computer users in developing countries. Intel said the PC would be a small, energy efficient system with full-featured PC technologies. The system being distributed by Telmex may be priced at around USD 300 including a monitor, about 20% less than low-end PCs now available.
Avantel, WebEx Ally To Offer Web Collaboration Applications
March 28, 2006
Avantel and California-based WebEx have partnered to offer a suite of business-process specific web applications to the Mexican market. The suite, called Net Conference, includes applications for web-based sales, support, training, marketing and meetings and is designed to help companies improve communications and efficiency.
Laird Technologies To Set Up A Plant In Reynosa
March 29, 2006
U.S. cell phone antenna manufacturer Laird Technologies will open a plant in Reynosa in April or May, its first in Latin America. The multipurpose facility will provide support for customers in Mexico and Central and South America. It will initially support handset antenna manufacturing and later address the manufacturing, conversion and distribution of EMI shielding.
Call-Center Industry Grows 19% In 2005
March 29, 2006
The call-center industry showed the largest growth in the technology sector with an 18.7% increase in 2005. Investment in call-centers in 2005 rose to USD 2.906 billion, up 17.3% from USD 2.478 billion in the previous year. The number of people working in the industry grew 19.9%.
Altiris To Launch New Distribution Partner Program
March 27, 2006
U.S. software company Altiris plans to launch a pilot program to fine tune the activities of its distributors in Mexico. Mexico is the first Latin American market where Altiris is launching the program, which is designed to refine Altiris' business focus to the education, government, energy and industry verticals.
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Media & Entertainment
Senate Approves TV Law Said To Favor Big Broadcasters
March 30, 2006
The Senate approved a new radio and television law that critics say will benefit the handful of big broadcasters that already dominate Mexican media. The legislation, which sailed through the lower house in December, ends government awards of broadcast spectrum by fiat and requires companies to bid for spectrum in a public auction. But critics say the measure provides Televisa and TV Azteca new spectrum for high-definition broadcasts free of charge, while rivals would be forced to bid for it.
Televisa’s Spanish Unit Clinches TV Rights For Football World Cup
March 27, 2006
Spanish network La Sexta, a unit of Grupo Televisa, has won Spain's television rights to this year's Football World Cup. The network won the rights in an auction organized by Telefonica. La Sexta didn't disclose financial details, although earlier this month, it said its bid for the rights was worth around EUR 100 million.
Telemundo President Criticizes Televisa as Anti-Competitive
March 31, 2006
U.S. Spanish-language broadcaster Telemundo criticized Televisa as anticompetitive and said it would be better if the company did not increase its stake in U.S. rival Univision. Telemundo president Don Browne said that the company has been frozen out of the Mexican market.
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Hospitality & Tourism
Minister Forges Partnership With UN Foundation To Protect World Heritage Sites
March 28, 2006
The Tourism Minister and the Mexican Tourism Board signed a letter of intent with the founding partners of the World Heritage Alliance, Expedia and the United Nations Foundation, to jointly promote and preserve World Heritage sites throughout Mexico. Together, the partners will educate travelers and the travel industry about the importance of responsible tourism.
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Economy
Mexico Posts MXN 13 Billion Public Surplus In February
March 30, 2006
Mexico posted a public sector surplus of MXN 13.1 billion in February, thanks to continued high oil prices. Budget income rose 27.3% in February compared with the same month last year, led by a 36.3% real increase in revenues from oil. Net public spending rose 19.7% over the year-ago period.
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Border & Migration
U.S. Senate Panel Approves Broad Immigration Reform
March 28, 2006
An immigration reform bill that would create a guest worker program pushed by President Bush and give millions of illegal immigrants a chance to earn citizenship was approved by a U.S. Senate panel. The first step toward comprehensive legislation was passed by the Senate Judiciary Committee and now goes to the full Senate for debate. Including the contested guest worker program, which would allow future temporary workers a chance to become permanent residents, sets the stage for a bruising battle over immigration.
Mexico, U.S., Canada To Form Competitiveness Council
April 1, 2006
Mexico, the U.S. and Canada formed a competitiveness council that’s designed to integrate the three countries’ economies beyond NAFTA. Groups of 10 government officials and business executives from each country will meet in Canada in June to discuss issues surrounding agriculture, automobiles, energy, corporate governance and improving border crossings.
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Politics
Authorities Probe Ads Comparing Lopez Obrador, Venezuela President
March 28, 2006
The Federal Electoral Institute agreed to investigate whether ads that appear to compare Lopez Obrador to Venezuelan President Hugo Chavez violated election rules that forbid slandering a rival. The ads aired by the PAN featured clips of Chavez and Lopez Obrador, implying both were intolerant. That stirred an angry response from Chavez and condemnation from the PRD.
Lopez Obrador's Lead Narrows in Election Poll
March 28, 2006
Andres Manuel Lopez Obrador's lead slipped slightly in a new poll by Consulta Mitofsky, after widening in other recent polls. Consulta Mitofsky gave Lopez Obrador 38% of the vote expected – seven points more than his nearest rival Felipe Calderon. The survey showed Calderon and Madrazo gaining one point each to 31 and 29 percent, respectively.
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Justice, Safety & Crime
Mexico To Extradite Drug Traffickers
March 31, 2006
President Fox said his government is preparing to extradite at least 24 drug traffickers to the U.S. He said he couldn't release the names of the traffickers facing extradition and warned they might react violently to the prospect of being sent abroad. The first dozen will be turned over in the coming weeks and at least another 12 will soon follow.
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