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Energy
Pemex Awards USD 68 Million Contract To Key Energy Services
September 4, 2008
Houston-based oil company Key Energy Services announced its Mexican subsidiary, Key Energy Services de Mexico, was awarded a USD 68 million contract to provide field production solutions for final products and services. The contract, which was awarded by Pemex, is for two years.
Pemex Awards KRC USD 40 Million Oil-Drilling Contract
September 1, 2008
Pemex Exploracion y Produccion (PEP) announced that it has awarded Mexican oil company KRC Grupo Petrolero de Mexico a USD 40 million contract to drill oil wells at the Burgos and Veracruz basins. PEP said that KRC was the winning bidder of the international bid to drill the wells, and that works will last 730 days.
Idemitsu Seals Mexico Deal
September 5, 2008
Japanese oil refiner Idemitsu Kosan said it has signed its first contract with the trading arm of Pemex, PMI Trading, to export 200,000 kiloliters a year, or 3,446 barrels per day (b/d) of diesel, and meet the country’s growing demand for oil products. The contract is Idemitsu’s first term oil product export contract with any nation since the number of its refineries shrank to four in 2004. The contract is not up for automatic renewal after the first year. Financial details of the operation were not provided.
Pemex Launches Tender For Oil-Drilling Contract In Mexico
September 3, 2008
Pemex announced that it has launched a tender for a 2½ year contract to supervise exploration and development drilling in Mexico’s southern oil-producing region. The contract involves the design of wells and the oversight of operations at 18 drilling sites in the states of Veracruz, Tabasco, Chiapas, Campeche and Oaxaca. The Mudlogging Company Mexico, Rotenco, International Logging and Geo International Mud Logging have registered to buy bidding rules.
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Mining
U.S. Judge Provides Mixed Ruling For Grupo Mexico In Asarco Dispute
September 2, 2008
A U.S. judge has ruled that Mexican copper miner Grupo Mexico (Gmex) did not commit fraud in 2003, when it transferred a stake in a Peruvian mining company from its bankrupt U.S. unit Asarco. However, the judge ruled that GMex did harm creditors when it transferred the stake. In a complex ruling, the judge said that the directors overseeing the transaction breached their fiduciary duty and knew that some of Asarco’s creditors would be harmed as the company was stripped of one of its most valuable assets. The judge is expected to rule on damages at a hearing later this month.
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Trade & Investment
AmCham Sees Foreign Direct Investment To Mexico Falling In 2008
September 5, 2008
The American Chamber of Commerce of Mexico (AmCham) said it that sees Foreign Direct Investment (FDI) to Mexico falling by USD 5.69 billion, down to USD 19 billion from the USD 24.6 it estimated in 2007. However, AmCham also said that FDI to Mexico will amount to some USD 19.5 billion in 2009, regardless of the increasing violence and the slow economic growth that was predicted for 2008.
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Banking, Insurance & Finance
Banking Industry’s 1H Profit Flat Reach MXN 30.16 Billion
September 3, 2008
According to the Banking and Securities Commission (CNBV), Mexico’s banking industry reported 1H net profit of MXN 30.16 billion, down slightly from the MXN 30.36 billion posted in the first half of last year. The sector’s assets grew 18.5% on the year to MXN 3.238 trillion at the end of June, and performing loans were up 19.1% to MXN 1.754 trillion. BBVA Bancomer, Banamex, Santander, HSBC, Banorte and Scotiabank controlled about 83% of loans and deposits at the end of June, with the rest of the market divided among 35 niche players.
AMIS: Insurers Pay Over MXN 15 Billion In 2007
September 3, 2008
According to an announcement by Mexico’s Insurance Association (AMIS), the 31 insurance companies that have a presence in the country paid over MXN 15 billion in premiums due to accidents in 2007, benefiting more than 450 Mexican families.
Groupo Ixe In Credit-Card JV With JPMorgan
September 5, 2008
Mexican banking group Ixe Grupo Financiero said that it has signed an agreement with a unit of JPMorgan Chase & Co. to set up a credit card joint venture in Mexico. Ixe said its bank subsidiary Ixe Banco and CMC Holding Delaware will each hold a 50% stake in a new company dedicated to the distribution and servicing of credit cards. Ixe said it expects to close the transaction in the next few months, subject to regulatory approval.
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Business & Industry
Tenaris To Invest USD 1.6 Billion In Rolling Mill In Veracruz
September 2, 2008
Luxembourg-based steelmaker Tenaris announced that it plans to increase its production capacity by installing a state-of-the-art small diameter rolling mill with an annual production capacity of 450,000 tons of seamless pipes at its industrial facilities located in the state of Veracruz. The mill is expected to begin operations by 2011. Tenaris is controlled by Italian-Argentinean conglomerate Techint.
SCA To Build New USD 240 Million Tissue Plant In Mexico
September 5, 2008
Swedish hygiene and paper product maker SCA announced that it will invest USD 240 million in a new tissue plant in Mexico, which will be located near the key markets in and around Mexico City. SCA said it has scheduled the plant to start production by the end of 2010. The tissue market in Mexico is well consolidated and SCA is currently second, with a market share of 18%.
Mexican E-commerce To Grow 70% In 2008
September 2, 2008
Experts have predicted that Mexican firms will likely sell 70% more goods and services over the Internet this year, mostly to people purchasing plane tickets and computers. Mexico’s Internet association said that this year’s expected brisk growth follows a 78% surge in Mexican e-commerce sales in 2007 to USD 955 million.
Grupo Industrial Saltillo Acquires Hesa
September 2, 2008
Mexican conglomerate Grupo Industrial Saltillo announced that its water heater business has acquired a stake in Mexican water heating company Hesa. Hesa has two heater manufacturing plants with a capacity to produce 1.3 million units. Financial details of the operation were not disclosed.
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Automotive
Deere To Close Canadian Plant, Shift Work To U.S., Mexico
September 3, 2008
U.S. farming equipment supplier Deere & Co. plans to close its manufacturing facility in Welland, Ontario, and transfer production to its operations in Wisconsin and Mexico. Production of Gator utility vehicles made at Welland will move to Horicon, Wisconsin. Production of cutting and loading attachments will be transferred to Deere installations in Monterrey and Saltillo, in the Mexican states of Nuevo Leon and Coahuila, respectively.
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Housing & Mortgaging
Hipotecaria Su Casita To Adopt Broader Financial Services Operations
September 2, 2008
Mexican home finance company Hipotecaria Su Casita said that it plans to change its concession in a move that will allow it to offer a broader range of financial services. Su Casita said it will switch to a multiple purpose finance company license from its current limited purpose license. As a multiple purpose financial company, Su Casita will be able to provide financial products, such as credit cards and personal loans, outside of its core mortgage business.
Su Casita, Liverpool Sign Credit Agreement
September 5, 2008
Mexican home finance company Hipotecaria Su Casita and Mexican department store chain Liverpool have signed an agreement which allows Liverpool to provide credit amounting to between MXN 10,000 and MXN 100,000 to Su Casita’s clients. Credits are for furnishing Su Casita’s clients’ homes with items provided by Liverpool.
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Retail
Wal-Mart De Mexico Executive Sees Store Growth Moderating
September 3, 2008
A top executive from the Mexican arm of U.S. retailer Wal-Mart said the company expects its rate of store expansion to moderate in coming years after expected 12% growth in 2008. The firm expects average growth to be about 10% over five years. Wal-Mart de Mexico’s (Walmex) expansion plan for this year calls for opening 205 establishments, including 60 smaller neighborhood stores as the company develops a format aimed at low-income sectors of the population.
SCJN Rules Against Walmex Worker Vouchers
September 5, 2008
The Supreme Court (SCJN) ruled that Walmex, the Mexican arm of U.S. retailer Wal-Mart, violated the constitution with a coupon program for its employees because the money can only be spent at Wal-Mart’s stores. For now, the ruling only applies to the one worker that sued the retailer and will not oblige Walmex to scrap the card scheme. But if enough employees group together to bring a similar case to court it could ensure all future rulings on the card scheme would go the same way.
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Transportation
Avolar Takes New Court Action To Keep Flying
September 3, 2008
Mexican low-cost airline Avolar has obtained court protection for “at least two or three years” against an attempt by the Communications and Transport Ministry (SCT) to suspend it. SCT grounded Avolar for several days last month after the airline failed to meet a deadline to pay MXN 131.2 million in fees to use Mexican airspace dating back to 2005. Avolar obtained a provisional injunction allowing it to resume flying immediately, but the SCT vowed to continue pursuing legal means against the airline.
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Telecommunications & Technology
Telecomm Sector Grows 34.7% In 2Q
September 2, 2008
According to a study by the Federal Telecommunications Commission (Cofetel), the Telecommunications Sector Production Index (ITEL) indicated that Mexico’s telecoms grew 34.7% during 2Q, boosting the country’s economy and multiplying its growth by 12 during the period. Cofetel’s report also showed that mobile telephony was the most dynamic branch in the sector and grew 55.7%. Cofetel said that 72.85 million people had a cell phone at the end of June.
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Farming & Agriculture
Mexico Suspends Beef, Poultry Shipments To U.S.
September 4, 2008
The Agriculture, Livestock and Rural Development Ministry (SAGARPA) said that the government has voluntarily suspended shipments of meat and processed poultry to the United States after U.S. officials raised concerns about the quality of Mexican food processing and inspections. SAGARPA’s Food Safety and Inspection Service identified systemic problems with sanitation controls and recordkeeping during an annual audit that took place in Mexico between June 24 and July 31. The voluntary suspension began August 29. Producers are currently checking conditions at their plants to comply with U.S. sanitary regulations.
Seaboard Farms: Mexico Puts Oklahoma Pork Plant On Hold
September 5, 2008
U.S. pork processing plant Seaboard Farms in Guymon, Oklahoma, had been delisted by the Mexican government but was recently upgraded to “hold.” There has been widespread talk in the U.S. meat markets that Mexico could retaliate after the U.S. bars meat imports from a number of Mexican plants.
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Economy
Banxico: Remittances Down 6.9% In July To USD 2.02 Billion
September 1, 2008
According to the central bank (Banxico), remittances from Mexicans living abroad fell 6.9% in July from the same month a year ago to USD 2.02 billion. July’s remittances brought the total for the first seven months of the year to USD 13.62 billion, down 2.9% from USD 14.02 billion in the January–July period of 2007. After reaching a record USD 24 billion last year, remittances are dropping this year largely as a result of tighter labor conditions in the U.S.
INEGI: Mexico Consumer Confidence Edges Up In August
September 4, 2008
The National Statistics Institute (INEGI) said that Mexico’s consumer confidence index edged up to 89.6 points in August from a record low of 88.4 in July. Mexicans were slightly more optimistic about both their current and future economic situations, but less hopeful about the country’s current economic situation. In July, the consumer confidence index was at its lowest since it was launched in 2001. Mexican inflation, at 5.37% in early August, is running at a more than five-year high, due mostly to high global food prices.
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Border & Migration
U.S.-Mexico To Discuss Efforts To Green Border
September 2, 2008
Officials from the U.S. and Mexico will meet in Ciudad Juarez, in the state of Chihuahua, to discuss environmental issues along the border, recognize environmental accomplishments to date, and commemorate the 25th anniversary of the La Paz Agreement. The fifth Border 2012 National Coordinators Meeting will be hosted by Mexico’s Environment Ministry (SEMARNAT) and the U.S. Environmental Protection Agency (EPA). Participants include the 10 Border States, county and local governments, representatives from U.S. tribes and Mexican indigenous communities, and non-governmental organizations.
Mexico Agrees To Pay Ex-”Braceros” In U.S.
September 6, 2008
The Mexican government agreed recently to reimburse thousands of ex-braceros now living in the U.S. who maintained the Nation’s farms and railroads decades ago through a labor agreement between both countries. The Mexican workers filled a labor shortage in the U.S. that came about at the start of World War II, as U.S. workers headed to serve in the military. But so far, only braceros living in Mexico have been paid. Braceros residing in the U.S. will have to wait to register for payment until the end of September, the deadline placed on Mexican officials to draw up the reform.
Police Detains 44 Undocumented Central Americans
September 1, 2008
The National Migration Institute (INM) said that police detained 44 undocumented Central Americans who were heading to the state of Chiapas and were traveling in the false bottom of two trucks. The detainees, who were dehydrated, included 38 Salvadorans and 6 Guatemalans.
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Politics
Calderon: Migrants Support Obama, But McCain Knows Mexico Better
September 3, 2008
President Calderon said he has been evaluating the possible advantages that would be offered to Mexico by the two U.S. presidential candidates, and without showing clear support for any of them, said that although Mexican migrants in the U.S. prefer Obama, McCain has a more accurate knowledge of Mexico’s reality. Calderon also noted that the Republican platform has a much more conservative approach on migration than the Democrats.
Inter-American Court Of Human Rights Rules Against Mexican Politician
September 3, 2008
The Costa Rica-based Inter-American Court of Human Rights has ruled against a one-time Mexican Cabinet minister who was blocked from running for president as an independent candidate in 2006. The court ruled that Jorge Castañeda’s political and equality rights were not violated, as he had argued. Last year, Congress passed a measure allowing candidates with no party affiliation to run for public office.
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Justice, Safety & Crime
SSP: Drug-Trafficking, A USD 10 Billion Business
September 4, 2008
According to the Public Security Ministry (SSP), Mexican drug traffickers are fighting over an illicit business that generates USD 10 billion a year. SSP told Congress that the figure came from a new study on drug trafficking. SSP also said that drug trafficking would continue and grow unless a comprehensive strategy was developed to fight it. The wave of drug-related violence in Mexico has left some 3,000 people dead this year, or 300 more than in all of 2007, according to unofficial figures.
Mexico Tops 3,000 Organized Crime Deaths In 2008
September 5, 2008
According to various media tallies, organized crime in Mexico has claimed 3,000 lives so far in 2008, setting a record for bloodshed with still almost four months left in the year. Milenio newspaper had the highest toll, counting some 3,200 organized crime victims through August 31. Grupo Reforma, on August 29, registered 2,954 deaths in the year. El Universal topped 3,000 in the first days of September. The tolls are annual records and are perhaps the most telling sign that narco-violence is steadily worsening in spite of almost two years of military-backed crackdown on gangs.
Calderon: Mexico Requires A National Police
September 2, 2008
President Calderon said that he considers a national police needs to be created in Mexico in order to fight crime effectively and efficiently. However, Calderon said that before such a unit is formally proposed, federal agents should have a better performance. Mexico’s police force amounts to 375,000 policemen, of which 203,000 are state police, 152,000 are municipal officers and only 20,000 are federal agents.
Mexico, France To Sign Security Agreement
September 5, 2008
France’s new Ambassador to Mexico, Daniel Parfait, said that his country and Mexico will soon sign a security agreement that includes training of Mexican policemen by French counterparts, training of scientific police officers and information exchange. Parfait noted that security must be guaranteed in order to avoid scaring investors away.
SHCP: Insecurity Slowing Economic Growth
September 4, 2008
The Finance and Public Credit Ministry (SHCP) said that the government estimates that growing drug-related violence in the country has slowed economic growth by as much as 1%. SHCP said the country’s security woes increase business costs by between 5% and 10%, hurting sales, job creation and development.
Top Police Brass In Tabasco Arrested For Drug Ties
September 6, 2008
Authorities have arrested 16 top police brass in the southern state of Tabasco for presumed ties to drug traffickers. Army soldiers took part in the operation, of which initial reports had only indicated the detention of the head of the municipal police in the city of Cardenas and five other top police officials. The Federal Attorney General’s Office (PGR) said that another 10 top police officers were arrested, among them the head of Tabasco’s Federal Preventive Police force and the chief of the state police force in Villahermosa.
Authorities Find Deluxe Drug Tunnel On Mexico-U.S. Border, Arrest Eight
September 3, 2008
Authorities arrested eight people after finding an underground tunnel designed for smuggling drugs into the U.S. The tunnel originated in the city of Mexicali and measured 1.5 meters (4.9 feet) in diameter and 60 meters (197 feet) in length, but did not yet stretch into U.S. territory at the time of its discovery. The tunnel’s destination apparently was a residential neighborhood in the adjacent city of Calexico, California. The tunnel had a rail-and-cart system, ventilation, lighting and an electric lift.
Police Detains Three Allegedly Linked To 12 Decapitated Bodies In Yucatan
September 1, 2008
The Public Security Ministry (SSP) said that police has detained three men that are alleged members of the Gulf Cartel’s hit-men group Zetas and who could be linked to last month’s discovery of 12 decapitated bodies in the state of Yucatan. The detained men were caught with fire arms and a blood-stained axe. Most of the decapitated victims had criminal records and were tied to drug trafficking.
Seven Cops Killed In Western Mexico
September 7, 2008
Seven municipal police officers were killed and another wounded in an apparent ambush at the entrance to Pareo, a town in the western Mexican state of Michoacan. The Michoacan Attorney General’s Office sent a rapid reaction team to the crime scene, and a bullet-riddled SUV was found abandoned near where the shootout occurred.
Police Free Woman, Arrest Eight Kidnappers
September 7, 2008
Police rescued a woman and arrested eight suspected kidnappers – three of them former soldiers – in the southern state of Tabasco. Ana Altunar Rodriguez was abducted nearly two weeks ago and the kidnappers were demanding MXN 500,000 in ransom. The suspects were arrested when they went to pick up the ransom on the outskirts of Tenosique, a city near the Guatemalan border. The woman was found by police after the suspects were arrested.
Five Dead In Rescue Operation
September 2, 2008
The Public Security Ministry (SSP) said that a successful operation to rescue two kidnapping victims left five people dead – one of them a police officer – and 20 under arrest. Federal police traded fire with the kidnappers in Villa Nicolas Romero, a town in the central State of Mexico (Edomex). Rescued were a 49-year-old woman and her adult son who were abducted from their family’s home. The captors were demanding a ransom of MXN 2 million. An anonymous caller tipped off police to the location where the captives were being held and a special operations team went to the site.
Kidnappers Collect Ransom Right During Anti-Crime March
September 2, 2008
A boy’s kidnappers forced his family to pay some MXN 70,000 in ransom during last month’s huge march against crime in Mexico City. The 12-year-old boy, who has not been identified, was kidnapped August 28 while playing in a downtown Mexico City street and released the day of the march after the ransom was paid.
U.S. Citizen Dies In Mexico Jail; Officers Investigated
September 1, 2008
Six Mexican officers have been placed under house arrest on suspicion of homicide after a U.S. citizen died while in police custody in the resort city of San Jose del Cabo, in the state of Baja California Sur. The victim was identified as a 38-year-old man from Oregon, but the U.S. Embassy could not confirm his name or hometown. The man was arrested after he was involved in a fight at an apartment complex and died in jail hours later.
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Sports
Conade Presents Sports Plan To Improve Results In London 2012
September 2, 2008
Sports authorities hailed Mexico’s fourth best performance in the Olympic Games and said they will launch the National System of High Performance, a new sports plan aimed at obtaining better results at the London 2012 Olympics. The Director of the National Committee of Physical Culture and Sports (Conade) presented the report of the Mexican delegation at the Beijing 2008 Olympic Games and said they will focus on the training of athletes by hiring some of the best coaches in the world for some disciplines.
President Calderon Congratulates Paralympics Gold Winner
September 7, 2008
President Calderon congratulated Mexican swimmer Nelly Miranda, who won a gold medal during the Beijing Paralympics. Miranda, 36, obtained the first medal of the Mexican delegation at the Paralympics. Miranda won the medal at 100m free on the category S4 with a time of 1:45.89 minutes.
Mexico Beats Jamaica 3-0 In Qualifier
September 6, 2008
Mexico eased past Jamaica 3-0 for its second win in matches in CONCACAF, qualifying for the World Cup. The venue was changed to rain-soaked Mexico City after Hurricane Gustav caused problems in Jamaica.
Lorena Ochoa Criticizes LPGA English Rule
September 2, 2008
Mexican golfer Lorena Ochoa says a new U.S. LPGA Tour policy requiring players to be effective in English starting in 2009 is a “little drastic.” Ochoa, world’s number one player in women’s golf, says golfers are better judged by their performance. She was asked at a charity event if she thought the new policy discriminated against international players. “That is a very strong word. I wouldn’t want to use it,” said Ochoa, who speaks English. “But I do think it is a little drastic.”
Mexican Olympic Medal Winners Awarded With Houses
September 2, 2008
Mexican medal winners at the Beijing Olympic Games received the first recognition to their triumph when receiving a letter from Mexican house construction company Homex, which has promised to award each of them a house. Homex will ask the four athletes to decide where they want it.
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Other
Rains Leave Five Dead In Chihuahua
September 4, 2008
Authorities announced that five people have died so far and hundreds have been evacuated from their homes in the northern state of Chihuahua due to heavy rains. Officials from the National Water Commission (Conagua) said that in an unusual situation, heavy rains are happening more often and in certain spots, leaving hundreds without communication and forcing those living near rivers to be sent to shelters.
Mexico Produces 1.5% Of World’s Carbon Emissions
September 5, 2008
The Environment Ministry (SEMARNAT) said, at the Forestall Expo 2008, which was held at Guadalajara, in the state of Jalisco, and themed “climate Change and Environment,” Mexico produces 1.5% of the world’s carbon emissions. SEMARNAT urged efforts from all public and private sectors to curb carbon emissions.
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