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Energy
Pemex Begins Developing Deepwater Natural Gas Field
March 11, 2008
Pemex announced that it has begun developing a natural gas field under 3,000 feet of water, the deepest it has ventured into the Gulf of Mexico so far. Pemex discovered the Holok-Temoa hydrocarbons complex in 2006 after drilling the Lakach exploratory well. Pemex plans to drill new fields to determine the size of the Holok-Temoa complex and begin building infrastructure to transport the gas from the ocean floor to processing plants along the coast. Since 2004, Pemex has made four discoveries in deep waters of the Gulf, and the company is currently completing the Tamil exploratory well. Pemex plans to spend USD 300 million this year on another two deepwater exploration wells.
Ecoenergy To Invest USD 100 Million In Aeolian Energy Projects
March 12, 2008
U.S. alternative energy producer Ecoenergy said it will invest over USD 100 million in developing new aeolian energy projects in different regions of the country starting in 2009. Econenergy has invested USD 50 million to begin generating aeolian energy in Santa Catarina, in the state of Nuevo Leon, starting next year. Similar amounts of money will be destined for the Loreto Bay project, in the state of Baja California, and other works in the state of Quintana Roo. In addition, Ecoenergy said it will design a plan to position Mexico, alongside Brazil, as the main ethanol producer in Latin America.
Pemex Awards MXN 773 Million Contracts For Modernizing Fire Alarm Systems
Narch 12, 2008
Pemex announced it has awarded contracts worth MXN 773 million for the modernization of its fire alarm systems at the gas processing complexes Nuevo Pemex and Ciudad Pemex, in the state of Tabasco, to Abener Energia, Abengoa Mexico and CONIP Contratistas. The three companies together presented the best offer to Pemex for the rehabilitation of its security networks. Pemex said works are expected to end by 2010. Pemex's two mentioned complexes in Tabasco provide 33% of the total natural gas consumed in Mexico.
Fugro Awarded EUR 27 Million Contract From Pemex
March 10, 2008
The Mexican unit of Dutch geotechnical services firm Fugro, along with associates Constructora Subacuatica Diavaz, has been awarded a large, multi-site high resolution geophysical and geotechnical survey by Pemex. Overall value of the contract is approximately EUR 27 million. Work is expected to begin this month. While the majority of the studies are in shallow water, some do take place in water depths up to 1,600 meters. These will be the first geophysical/geotechnical studies performed in Mexican territorial waters at these depths.
Pemex Intensifies Advertising Efforts On Need For Deep-Sea Exploration
March 13, 2008
Pemex will pay Mexican broadcaster Televisa more than USD 10 million in 2008 to mention the need for deep-sea exploration in its programming. Televisa's chairman and controlling shareholder Emilio Azcarraga told reporters that Pemex was paying for "product placement" spots during Televisa programming. In recent nighttime soap operas aired on Televisa, the main characters have talked about Pemex's need to increase production via the exploration of deep-sea oil fields.
Mexico City Electricity Workers Call Off Strike
March 16, 2008
Mexico City (DF) electricity workers called off a strike after reaching a contract settlement with government-run utility Luz y Fuerza del Centro (LyFC). The Energy Ministry (SENER) said that about 40,000 workers of LyFC agreed to a 4.25% wage increase, plus 1.29% in additional benefits. The Mexican Electricians Union (SME) had originally demanded a 16% wage increase. SENER said the broader contract negotiations also led to an agreement to overhaul LyFC. SME and LyFC agreed to make improvements in operations, administration and customer service at the utility, whose efficiency levels are well below the Federal Electricity Commissions's (CFE's). SME and LyFC also agreed to new productivity goals, including the relocation of workers from areas where improved labor efficiencies are found to be possible.
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Business & Industry
DHL To Invest USD 112 Million In Mexico Between 2008-2012
March 13, 2008
U.S. express courier and logistics services provider DHL said it will invest USD 112 million in Mexico between 2008 and 2012 in various projects, including a new hub located in southern Mexico which will start operations in two months. DHL said it has invested USD 1.3 million so far this year to broaden, remodel and optimize its Mexico City hub, which is also its most important in Latin America. The new investment will allow DHL to process 7,500 packages per hour, which represents an increase of between 20% and 30% in the company's installed capacity.
Sara Lee To Sell Stake In Mexican JV To Partner Xignux
March 13, 2008
U.S. food maker Sara Lee announced it has agreed to sell its 49.9% stake in the Qualtia Alimentos meat and cheese business in Mexico to Mexican conglomerate and joint venture partner Xignux for an undisclosed amount. Completion of the transaction is subject to customary conditions and is expected to occur within a month. The move was part of Sara Lee's effort to streamline its business and focus on core brands. Currently, Qualtia Alimentos sells meats and cheeses under brand names Zwan, Kir, Duby, Riojano, Alpino, Donfer, Caperucita and Buen Pastor.
AHMSA Unionized Work Force Approves Pay Raise
March 10, 2008
Approximately 5,000 Mexican steel maker Altos Hornos Mexicanos (AHMSA) unionized workers accepted a 6% pay raise along with a 2% productivity bonus. The workers will also receive a cash payment that equals 1% of their current annual wage. With the agreement, AHMSA's negotiations with national mining union sections 147 and 205 are concluded.
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Automotive
INA Expects 4.7% Increase In Auto Parts Production
March 13, 2008
The National Auto Parts Industry (INA) said auto parts production in Mexico in 2007 was worth USD 28.6 billion, a 9.8% increase compared to 2006. INA said it expects a 4.7% increase in auto parts production in 2008, which would be worth USD 29.9 billion and would be boosted by the arrival of new platforms to the country and by the opening of a new vehicle assembly plant by 1H.
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Housing & Mortgaging
Homex Sets Aside USD 250 Million To Buy Back Shares
March 12, 2008
Mexican housing company Desarrolladora Homex announced that its shareholders approved USD 250 million to buy back its own shares. According to Homex, share repurchases will take place on the open market, from time to time, based on market conditions. The repurchase program has no time limit and may be suspended for periods or discontinued by the Homex board of directors at any time.
Su Casita Issues USD 122 Million In Notes Backed By Construction Bridge Loans
March 14, 2008
Mexican mortgage lender Hipotecaria Su Casita successfully issued USD 122 million in six-year notes backed by construction bridge loans made to Mexican homebuilders. The bridge loans are originated in Mexico by Su Casita; the underlying asset is a first lien on the land and anything built on it. Mexican homebuilders, clients of Su Casita, include Homex, Urbi and Demet.
BBVA Places USD 100 Million In Housing Loans
March 12, 2008
The Mexican arm of Spanish bank BBVA placed USD 100 million worth of home loans with investors, its second issue in the country's small but fast-growing mortgage-backed debt market. BBVA said it sold almost 1,600 mortgages in the USD 100 million 20-year issue, rated "AAA" by Fitch Ratings. Mexico's mortgage industry is expanding quickly amid economic stability and a government drive to see 1 million homes built and sold per year.
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Construction & Infrastructure
Holcim To Invest USD 800 Million In Mexico Over Three Years
March 12, 2008
President Calderon met with Swiss-based cement company Holcim's CEO and said that the company plans to invest about USD 800 million in Mexico between 2008 and 2010. The investment over the next three years includes USD 400 million for a new 1.6 million ton-a-year cement plant under construction in the northwestern state of Sonora. Holcim's Mexican unit Holcim Apasco operates six cement plants with an annual capacity of 11.3 million metric tons. Holcim is among the world's three biggest building materials companies, along with France's Lafarge and Mexico's Cemex.
Grupo Cementos De Chihuahua To Spend MXN 2 Billion In U.S. Acquisitions
March 12, 2008
Mexican cement maker Grupo Cementos de Chihuahua (GCC) said it has spent MXN 2 billion in acquiring U.S. cement producers this year. GCC's CEO said that the company acquired U.S. peers in 2007 as the U.S. economy slowed down and that GCC plans to continue profiting from the current U.S. economic environment. GCC said that 57% of its income is generated in the U.S. market and it aims to increase that figure to 60%.
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Retail
Advent International To Invest USD 20 Million In Milano/Melody Stores
March 13, 2008
Private equity concern and main shareholder of Mexican retailer Milano/Melody Advent International said it will invest USD 20 million in 2008 to open 26 new stores and update its computers. The expansion will be financed with both inner resources and with resources form Scotiabank Inverlat, HSBC and Banorte banks. Executives from Melody/Milano have said that they will open 18 Melody stores and 8 Milano stores throughout the country in communities of less than 40,000 people in 2008, and they are expecting to enter the Mexico City (DF) market in 2009.
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Transportation
Siemens Plans Active Role In Mexican Infrastructure Tenders
March 12, 2008
German conglomerate Siemens said it is planning to participate actively in a major port project in Mexico in 2008, as well as other transport, energy and water treatment works. Siemens said that it is preparing proposals to provide technology for the automation of the Punta Colonet port, in the state of Baja California, and is also interested in a railway that is planned to connect the port to the U.S. The government plans to start seeking bids for the Punta Colonet project between 2Q and 3Q 2008. Siemens said it is interested in providing automation technology for suburban passenger rails to be built in and around Mexico City (DF) – "regardless of who wins the tenders" – while also planning to present its own bids for the two suburban lines and a new line to be added to the DF Metro system. Siemens said it will bid on projects for the Federal Electricity Commission (CFE), and that it will invest at least USD 30 million this year in water treatment projects.
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Telecommunications & Technology
Telmex Sues Telefonica Chile On Monopoly Charge
March 12, 2008
The Chilean unit of Telmex said it has started a lawsuit against the Chilean affiliate of Spain's Telefonica alleging monopolistic practices. Telmex said it is suing Telefonica CTC Chile in Santiago's Court of Free Competition, saying the Spanish parent tried to block a 2004 government auction of wireless spectrum. Telmex said that the aim was to get the court to fine Telefonica, not for Telmex to win compensation. If the court rules Telefonica is guilty, then it could be fined up to USD 1.6 million. In January 2007, Telmex won the WiMAX tender and now offers the service, which includes telephone service and wireless broadband Internet, to about 98% of the country's population.
Axtel-Avantel, Maxcom Support Winner Of Number Portability Administrator
March 13, 2008
Mexican telecommunications companies Axtel-Avantel and Maxcom voted for U.S. number portability solutions provider Telcordia, the company selected by the Federal Telecommunications Commission (Cofetel) to administer Mexico's new number portability regime. Alestra and Iusacell-Unefon had voted for an alternate company called Syniverse. Telcordia has won similar contracts to manage national number portability regimes in Canada, Egypt, Greece, Saudi Arabia and South Africa, among other countries. Cofetel has said that Mexico's new number portability regime – which will allow people and businesses to change their service provider while keeping their number – will be implemented in July 2008.
Cofetel Targets Maxcom; Firm To Increase Number Of Public Phones It Operates
March 11, 2008
The Federal Telecommunications Commission (Cofetel) is considering levying a fine on Mexican telecommunications company Maxcom for the way it charges for its public telephony services. Nevertheless, a spokesperson from Maxcom said that the company had not been informed that it was being targeted by Cofetel for a possible fine. Competitors have submitted complaints to authorities saying that Maxcom offers services in such a way that precludes them from being able to offer similar services cheaply. Maxcom will increase the number of public phones it operates by 10,000 in 2008. The total number of pay phones operated by Maxcom by year-end 2008 will be 35,000.
PSD Global To Represent Mexican Technology Incubator
March 12, 2008
International business and economic development consulting firm PSD Global announced that they have agreed to support the Government's technology incubator TechBA with the U.S. sales and business developments of a selection of its IT firms. Terms of the agreement call for PSD Global to represent those Mexican IT firms that are working with TechBA's Silicon Valley Accelerator to build a successful sales and marketing presence in the U.S. The TechBA Program, created by the Economy Ministry (SE) and the U.S.-Mexico Foundation for Science (FUMEC), has the purpose of supporting top-tier Mexican companies in bringing their innovative technology, products and services to global markets.
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Media & Entertainment
Televisa, Telemundo Reach Content Sharing Agreement
March 17, 2008
Mexican broadcaster Televisa and General Electric's Spanish-language broadcaster Telemundo have reached a content-sharing deal in Mexico. Televisa said that starting in April its Channel 9 will transmit more than 1,000 hours of original Telemundo programming annually. In addition, Telemundo this year will launch a channel with entertainment and news programming and will use the satellite transmission platforms of Televisa and Cablevision. Televisa said the agreement will be valid for 10 years and it will initially reach two million homes. The firm added that it expects to sign other agreements to include Telemundo programming via other technologies like the Internet, mobile telephony, DVD and video on demand. Financial terms of the deal were not disclosed.
TV Azteca Sues IFE Over Political Ads
March 14, 2008
Mexican broadcaster TV Azteca said it is taking legal action against the Federal Electoral Institute (IFE) for imposing political advertising schedules on the company. TV Azteca has made the decision to file for an injunction against measures by IFE's television and radio committee, which in its opinion, violate individual guarantees. Last year Congress passed an electoral reform that, among other measures, bans parties or candidates from buying air time on radio and television for election campaigns. Instead of paid spots, parties are allotted "official time" – free air time reserved by law for the government – regulated by IFE. TV Azteca said the action it is taking is against a decision by the IFE radio and television committee that fixes dates and times for political spots without first consulting the broadcaster.
CIE To Revamp Existing Gaming Sites; 22 Permits To Remain Unused
March 11, 2008
Mexican out-of-home entertainment company CIE will focus between USD 25 million and USD 30 million of its 2008 Capex budget of USD 52 million on maintenance and revamping existing gaming sites. CIE was issued a total of 65 gaming venue permits, of which 43 are in use; its remaining 22 gaming venue permits will remain unused for the time being. Experts have said that a possible sale of CIE's remaining stake in its gaming business to Mexican broadcaster Televisa, a current competitor in that sector, could be positive for all participants in it in terms of investor awareness and valuations.
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Hospitality & Tourism
New Record Of Foreign Visitors To The U.S. In 2007; 15.1 Million Were Mexicans
March 10, 2008
The U.S. Commerce Department said that the number of foreign visitors to the U.S. set a record in 2007 for the first time since before the September 11 attacks. Foreign visitor numbers totaled 56.7 million, surpassing the previous record of 51.2 million set in 2000. Foreign visitors also spent a record USD 122.7 billion in the U.S. last year, a rise of more than 50% from a low set in 2003 in the aftermath of the September 11 attacks. The 56.7 million foreigners who visited the U.S. last year included 17.7 million from Canada, 15.1 million from Mexico and 23.9 million from overseas countries.
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Economy
Remittances To Latin American And Caribbean Countries Slacken
March 12, 2008
According to the President of the Multilateral Investment Fund (MIF), Latin American and Caribbean migrants sent a record USD 66 billion to relatives back home last year, but the remittances grew by the lowest rate ever, with Mexico and Brazil showing significant slowdowns. Remittances, which are now considered a critical part of many Latin American and Caribbean economies, rose 7% in 2007, the first year that the growth rate has been in single digits. Some of the causes of the problem are harder anti-immigration measures and the U.S. economic slowdown. The MIF is the unit of the Inter-American Development Bank (IDB) that has been looking at remittance trends since 2001.
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Border & Migration
U.S. Coast Guard Rescues 15 In Apparent Human Smuggling Attempt
March 13, 2008
Fifteen people were rescued from a boat off the U.S. Pacific coast after they were stranded for three days in an apparent human smuggling attempt gone bad. Officials of the U.S. Coast Guard and the Customs and Border Protection agency found the small vessel several nautical miles offshore north of the Mexican border. There was no food or water onboard, and some people were dehydrated and sunburned, but noone required medical treatment. Fourteen passengers were Mexican and one was Salvadoran.
Mexican Embassy, UNAM, Fundacion Azteca, Grupo Salinas To Offer ESL Classrooms In The U.S.
March 10, 2008
The Mexican Embassy in Washington and the Foreign Affairs Ministry (SRE) announced the nationwide launch of English as a Second Language (ESL) courses throughout Mexico's network of 48 consular offices in the U.S. The project is being developed in conjunction with the National Autonomous University of Mexico (UNAM), Fundacion Azteca America and Grupo Salinas. The first phase of the program includes courses offered by UNAM-appointed ESL teachers with a proven "Survival English" 60-hour course plan, in the Mexican consular offices of Chicago, Detroit, Houston, Los Angeles, New York and Santa Ana.
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Politics
Cuba, Mexico Say Relations Back To Normal After Tensions
March 13, 2008
Cuba and Mexico declared their once-chilly relations fully restored, and Cuban President Raul Castro invited President Calderon to visit the island. President Calderon has said he wants warmer ties with Cuba, which historically have been good but soured under his predecessor, Vicente Fox, who feuded publicly with Fidel Castro. Under Fox, Mexico also backed a 2002 U.N. Human Rights Commission resolution condemning Cuba. The two nations temporarily withdrew their ambassadors in May 2004.
About 50 Mexican Students Protest At Colombian Embassy
March 12, 2008
More than 50 university students protested peacefully before the Colombian Embassy in Mexico City (DF) to repudiate the Colombian army's attack on a Revolutionary Armed Forces of Colombia (FARC) base in Ecuador that killed 27 people, among whom four were confirmed as Mexicans and three have died. Shouting "comrade student, your death will be avenged!" members of the student assembly of the Philosophy and Letters Faculty at the National Autonomous University of Mexico (UNAM) protested for more than an hour in front of the diplomatic mission.
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Justice, Safety & Crime
Authorities Capture Key Tijuana Drug Cartel Operative
March 12, 2008
Authorities have captured a high-level drug suspect working for the powerful Tijuana-based Arellano-Felix cartel and could deport him to face smuggling charges in the U.S. Gustavo Rivera Martinez, a U.S. citizen wanted by the FBI and the Drug Enforcement Agency (DEA) on drug charges, was arrested in the state of Baja California Sur along with three other men, one of whom was a Canadian citizen identified as Pavel Kulisek of Vancouver. Nevertheless, authorities said that the deportation of Rivera Martinez was in limbo after he said he also has Mexican citizenship. Under Mexican law, Mexican citizens cannot be deported to another country. Foreign governments that wish to try a Mexican citizen must submit an extradition request, and the process can take months or even years. A resolution on Rivera's citizenship is expected to be issued soon.
Prosecutors In U.S., Mexico Agree To Combat Money Laundering
March 13, 2008
Prosecutors from Mexico and the U.S. pledged to focus more aggressively on combating money laundering by drug and immigrant smugglers who wire their illegal proceeds into Mexico from the U.S. The prosecutors, who completed a conference in Phoenix on fighting border crime, agreed that Mexican authorities will use investigative techniques developed in Arizona to try to disrupt the flow of smuggling money into Mexico. Arizona Attorney General Terry Goddard, leader of the prosecutors groups that held the conference, said his state will advise Mexican authorities on separating legitimate money transfers from those by made by smugglers and on responding to the methods that traffickers use to evade investigators.
Attorney General: U.S., Mexico Need Comprehensive Strategy
March 12, 2008
Attorney General Eduardo Medina Mora told officials at the U.S.-Mexico Congressional Border Issues conference at a gathering in the Library of Congress that the U.S. and Mexico need to hammer out a sweeping strategic vision for the future of the two countries. Medina Mora said that "security, drug trafficking, immigration, trade and economic intervention are components of that comprehensive vision." "We cannot organize just one aspect of that." Mora emphasized the links and connections between many of the issues facing both countries, and Mexico's successes in targeting drug cartels.
Police Seize Guns, Grenades In Cancun Resort
March 11, 2008
Police found an arsenal containing firearms of different calibers, hand grenades and more than 1,500 rounds of ammunition inside an apartment in the hotel zone of the Caribbean resort of Cancun, in the state of Quintana Roo, but no arrests were made. Federal police officers seized the arms in an apartment on Kukulkan Boulevard thanks to intelligence reports. Authorities seized 22 firearms, including 20 M-16, AR-15 and AK-47 assault rifles, 14 grenades, 67 ammunition clips and more than 1,500 rounds of ammunition of different calibers. Also found in the apartment were 25 radios and 12 adhesive labels for vehicles with lettering, insignias and shields of police departments, a vehicle, cell phones, caps, handcuffs, license plates, rolls of tape and remnants of what appeared to be marijuana.
Authorities Say 36 Is Final Tally Of Bodies Found In Border City Backyard
March 15, 2008
Officials said that 36 bodies were found buried in the backyard of a house in Ciudad Juarez, in the state of Chihuahua, and believe that the number represents the final tally. Federal agents began digging behind a house allegedly used by the Juarez drug cartel two weeks ago after receiving an anonymous tip. In the raid, investigators found 3,740 pounds (1,700 kilograms) of marijuana in the house. They initially found six dismembered bodies but as excavations proceeded the tally rose.
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Other
U.S., Mexico Seek To Cut Mexican Breast Cancer Deaths
March 14, 2008
U.S. First Lady Laura Bush and Mexico's First Lady Margarita Zavala launched a joint effort to try to reduce breast cancer deaths in Mexico and improve early detection of the disease. The First Ladies announced the U.S.-Mexican Partnership for Breast Cancer Awareness and Research. The partnership with Mexico – similar to others launched in the Middle East – offers medical resources from the University of Texas' M.D. Anderson Cancer Center with the grassroots and educational resources of Susan G. Komen for the Cure. Breast cancer is the second leading cause of cancer-related deaths among women in Mexico and throughout Latin America. According to official figures, 4,200 Mexican women die from the disease each year and breast cancer incidence has been on the rise in recent years.
Indians Gather To Save The Planet
March 12, 2008
North American Indians assembled in the shadow of ancient Mayan pyramids discussed how their tradition and wisdom could help save the planet, and were told that even indigenous cultures have struggled with environmental abuse. More than 200 leaders from 71 American Indian nations in Mexico, the U.S. and Canada came together in the Mexican Lacandona jungle to find indigenous solutions to pollution and ecological problems threatening the planet.
Mexico Eliminated From CONCACAF Olympic Qualifying
March 17, 2008
Mexico missed out on qualifying for the Beijing Olympics despite trouncing Haiti 5-1. Mexico tied Canada for second place in Group B with four points apiece in the CONCACAF men's Olympic qualifying tournament, but Canada advances – the group winner – to the March 20 semifinals in Nashville, Tennessee, based on goal differential after downing Guatemala 5-0.
5.7 Magnitude Earthquake Rattles Southern Mexico
March 13, 2008
A moderate earthquake shook southern Mexico without immediate reports of significant damage or injuries. The 5.7-magnitude quake was centered offshore, 48 miles (78 kilometers) southwest of the city of Mapastepec in the state of Chiapas. Civil Protection in Chiapas said that police in 118 towns and cities said everything was normal throughout the affected area. About 70 tremors have shaken the state since January.
Nine Mexican School Children Killed As SUV Falls Into Canal
March 10, 2008
A sports utility vehicle (SUV) fell into a canal in central Mexico killing nine small children but leaving their teacher unharmed. The eight girls and one boy, ages 3 to 7, were heading to their teacher's house for lunch and to celebrate her 20th birthday when the SUV they were traveling in fell into a canal outside the town of Cardenas, in the state of Guanajuato. The teacher is currently under arrest and authorities are investigating causes of the accident.
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