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Mexico the Country with the Largest FDI on Aerospace Sector for the Fourth Year in a Row

Admin | 12.08.2013

While the market value of Commercial Aerospace Industry in the world is nowadays between US$550 billion and US$600 billion, Aerospace Industry in Mexico –which grew to US$5.4 billion last year, posting 24.2% increase over the previous year– consists to date of 287 registered companies, and 24 new investment projects are expected to materialize in coming months throughout Mexico, Carlos Bello, Director of the Mexican Federation of Aerospace Industry, Federacion Mexicana de la Industria Aeroespa

While the market value of Commercial Aerospace Industry in the world is nowadays between US$550 billion and US$600 billion, Aerospace Industry in Mexico –which grew to US$5.4 billion last year, posting 24.2% increase over the previous year– consists to date of 287 registered companies, and 24 new investment projects are expected to materialize in coming months throughout Mexico, Carlos Bello, Director of the Mexican Federation of Aerospace Industry, Federacion Mexicana de la Industria Aeroespacial (FEMIA), informed during the presentation of the third Mexico’s Aerospace Summit, the most important summit of businesses specialized in aerospace manufacturing industry in Mexico, organized by MexicoNow, to be held on September 26th and 27th at Queretaro Congress and Convention Center.

Mr. Bello further pointed-out that Aerospace Industry is strategic for Mexico, since it is an industry that comprises high technology, innovation and competitiveness, design and engineering as well as investigation and research, becoming a development alternative for Mexican professionals. Marcelo Lopez Sanchez, State of Queretaro Minister of Sustainable Development; Alfredo Nolasco, Chief Country Representative Mexico for Bombardier Aerospace Mexico and Sergio Ornelas, MexicoNow Editor were also present at the press conference. Last, Carlos Bello said that Mexico’s growth in the aerospace sector will be very significant in coming years; he spoke about the five clusters Mexico currently has, namely Queretaro, Nuevo Leon, Chihuahua, Sonora and Baja California. He further pointed-out that for the fourth year in a row Mexico was the country which received the largest Foreign Direct Investment on Aerospace Industry in the world. Marcelo Lopez Sanchez, State of Queretaro Minister of Sustainable Development said that in the last few years Queretaro has become a benchmark for Aerospace Industry in Mexico, being the first destination for investments in this sector, the first aeronautics cluster in Mexico and, he further said, they are working on joining the triangle of the main aerospace clusters in the world in the line of Toulouse-Montreal-Seattle-Michigan-Queretaro. To such purpose –he informed– a few weeks ago Governor Jose Calzada announced the investments to be made in coming months on Aeronautics Industry in Queretaro for close to US$160 million. Lopez Sanchez also said that Queretaro became an international benchmark due to its fast and strong evolution in only seven years, and the fact that the first and only Aeronautics University in Mexico is located at the State. Therefore, he said, some strategies are being undertaken to develop a strong Aeronautics Industry in Mexico, which include joint ventures, the development of local suppliers, attracting investments on innovation and technology, as well as support to SMC’s to become part of the chain of supply for the aerospace sector. Last, Queretaro’s Minister of Sustainable Development pointed out that the State he represents has a practically new airport, which allowed the development of an Aeronautics Park, which has been basic for the establishment at the State of international companies such as Bombardier, Eurocopter and Safran. Mexico’s Aerospace Summit is a summit of businesses specialized in aerospace manufacturing industry. “The event includes conferences, B2B meetings, visits to three manufacturing plants and the exhibition of aeronautic products currently manufactured in Mexico. Mexico's Aerospace Summit with gather assemblers and suppliers of parts and services from the global Aerospace Industry”, according to Sergio Ornelas, Editor of MexicoNow, the organization that is organizing the summit. Attendants to Mexico´s Aerospace Summit will have the opportunity to know and compare the benefits of manufacturing their products in Mexico. They will learn about new market trends, intellectual property, labor at the region, logistics and costs, and they will also hear some cases of success from companies already manufacturing in Mexico. Alfredo Nolasco, Chief Country Representative Mexico for Bombardier Aerospace Mexico agreed with the two other speakers on Mexico’s current leadership in Aerospace Industry, and he congratulated MexicoNow and Sergio Ornelas for organizing the Mexico’s Aerospace Summit. Alfredo Nolasco said that Bombardier is the only company in Mexico currently devoted to manufacturing trains and aircraft components. Bombardier’s total investment in Mexico amounts to a little over US$700 million, distributed in US$500 million at their plant in Queretaro and US$200 million at their Ciudad Sahagun Plant. He said that this Canadian company is participating in all the biddings being called under the National Infrastructure Program, because they want to contribute to the development and evolution of mobility in Mexico. Mr. Nolasco also spoke about Bombardier’s plans for an airplane fully assembled in Mexico, but he would not mention any dates since, he cleared-out, there are several factors involved. He also pointed-out that nowadays the important thing in aerospace sector in Mexico is not to have a fully assembled airplane leaving a plant either in Sonora, Chihuahua or Queretaro, but being consolidated as a truly integrated market in North America.

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