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International News From the Field: Mexico and Brazil

The automotive and aerospace industries in Mexico and Brazil increase activity. While automotive drives growth in the two major economies of Latin America, agriculture, energy, and others see investments. For more industry intel and other tidbits, read on.
May 03, 2024

Brazil

For more information, contact Achilles Arbex (aarbex@AMTonline.org).

  • Brazilian-based aircraft manufacturer Embraer has announced an ambitious plan to invest approximately $390 million and hire 900 additional employees in 2024 as the firm seeks to capitalize on soaring demand for its product range. According to a company statement, the sizeable investment includes funding targeted at research and development activities for new technologies, such as those that will be used in eVTOLs (electric vertical take-off and landing vehicles) and the expansion of aeronautical services, including the conversion of passenger aircraft into cargo aircraft. The investment will also benefit Embraer’s defense and security product lines, efficiency improvement projects, and the expansion of “industrial activities” at the manufacturer.

  • Brazilian energy storage system manufacturer UCB Power has announced an investment of $80 million through 2028 to expand its activity at their factory in Extrema, Minas Gerais, with an aim to locally produce energy storage solutions.

  • The industry in Rio Grande do Sul recorded an increase of 13.5% in investments in capital between March 2023 and February 2024, implying an increase of $320 million in the acquisition of machinery and equipment. During the period analyzed, the industrial sector invested $3 billion in the purchase of goods used in the production line.

  • Agricultural machinery manufacturer John Deere announced Monday that it will invest more than $140 million to expand the infrastructure of its agricultural machinery factory in Catalao, Goias. The company makes sugar-cane harvesters and sprayers at the unit.

  • Honda plans to invest $840 million in Brazil between 2024 and 2030 to introduce new hybrid vehicle technology and develop a chain of key suppliers.

  • Netzsch Bombas & Sistemas officially opened a screw pump factory in Pomerode, Santa Catarina. The new factory will be dedicated to the production of NOTOS screw pumps, which will put Netzsch on the path to becoming the global expert in complex fluid management.

Mexico

For more information, contact Carlos Mortera (cmortera@AMTonline.org)

  • Japanese tire manufacturer Yokohama is planning to build its first manufacturing plant in Mexico with an investment of $380 million.

  • Japanese electronics company Taxan Kaga recently opened a new $40 million plant in San Luis Potosi’s Millennium Industrial Park.

  • Kirchoff Automotive will open a new plant in North America to meet growing demand. This new plant will join the recent plant in San Jose Iturbide, Guanajuato, which began construction in February.

  • Industrias Ochoa will invest $12.8 million to expand its plant in Queretaro and reinforce its presence in Mexico and North America. The company is a leader in manufacturing metal stampings, welding, and automotive assemblies.

  • UTAS-NOVA Automotive Lighting, a Chinese supplier of automotive lighting components, has announced an investment of $35 million in Aguascalientes. The company will set up its plant in the Vesta Industrial Park and begin construction in September 2024. The production lines will manufacture exterior lighting components for vehicles, including headlights, turn signal lights, fog lights, side lighting, brake lights, integrated cameras, and license plate lights, among other lighting elements.

  • Automotive technology supplier ZF has opened an R&D center in its $200 million multifunctional, multidivisional campus in Monterrey. The campus covers an area of 43,000 square meters and consists of a manufacturing plant, corporate building, and laboratories. At present, the center employs 700 people, and it is expected to employ 1,000 people by 2026.

  • The Volvo Group has invested over $73 million in the last five years for the expansion and upgrading of the Mack LVO plant. Currently, they are investing an additional $80 million to prepare for future production. The NRV plant has completed a six-year, $400 million expansion and upgrade to prepare for the production of the new Volvo VNL model.

  • China-based Eaglerise Net Electric has announced a new investment of $197 million in Coahuila. As a supplier of electrical and electronic components of Chinese origin, the company will establish a new plant in Ramos Arizpe and generate around 700 new job opportunities. The total application of resources to create these jobs will be $53 million.

  • Regal Rexnord invests $13.8 million to establish itself in Bafar Industrial Park, Chihuahua, creating 190 jobs. It will manufacture industrial propulsion systems, electric motors, bearings, and more.

  • Chihuahua's aerospace sector now includes 45 companies and exports products worth $1.8 billion annually.

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Author
Achilles Arbex
Director, Global Services
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