Our reporting countries in the Americas south of the United States continue to rebound with exciting new projects in Mexico, Argentina, Colombia, and Chile. The near-shoring phenomenon is helping to drive growth in Mexico and Columbia, and the new USMCA has Mexico focusing on increasing the value add of its manufacturing output. Brazil’s forecast is to have more than 4% industrial GDP growth in 2021, and presently, the PMI remains above 60. Chile expects heavy investments in 2021 in the mining industry. For more industry intel and other tidbits, read on.
Mexico
For more information, contact Carlos Mortera (cmortera@AMTonline.org).
PGI, a supplier of aluminum injection products, precision machining, and finishing, invested over $30 million in San Luis Potosi, Mexico
Two companies in the auto industry announced investments in Coahuila, Mexico. Japoramex, a manufacturer of seat covers, will invest $11 million, and Kyungshin, a manufacturer of automotive cables, is going to invest over $65 million.
The National Auto Parts Industry (INA) projects a growth of 22% in 2021 with annual production surpassing $95 billion.
San Luis Potosi has 10 new investment projects in the automotive sector to be implemented in the first three months of 2021. The projects translate into $250 million of new investments.
Overall, Mexico exports increased 1% in September but increased about 7% for machines and special equipment and 11% for electric and electronic devices and equipment. Annual exports increased 4.3% for manufactured goods but decreased 22% for oil and gas.
The Dutch company AWL begins operations of their new expansion in El Marqués, Querétaro, with an investment of $12.4 million.
The state of Querétaro closed 2020 with 27 projects that translated into $50 million of investments in different industries like automotive, IT, aerospace, appliances, and food & beverage.
Colombia
For more information, contact Carlos Mortera (cmortera@AMTonline.org).
Whirlpool’s washing machine exports from their Colombian facility increased 45% in 2020 compared to 2019. In 2021, the company will add new product lines and investments for the Colombian market.
Chile
For more information, contact Carlos Mortera (cmortera@AMTonline.org).
The Chilean mining industry expects to grow steadily over the next five years. Sixteen specific projects have been identified with a total investment of over $9 billion. These investments are expected to reactivate the regional economy and generate job opportunities.
Argentina
For more information, contact Carlos Mortera (cmortera@AMTonline.org).
AGCO announced a $1 million investment to modernize the manufacturing line of high-powered tractors for their Massey Ferguson and Valtra brands in General Rodríguez, Buenos Aires.
2021 is expected to be a good year for the automotive sector in Argentina. While 2020 had low production numbers, with only 250,000 cars manufactured, production is expected to increase 70% in 2021. Argentina is known as the pickup truck production center for the region.
Brazil
For more information, contact Achilles Arbex (aarbex@AMTonline.org).
The PMI remains very healthy, clocking 61.5 for December.
Brazil’s tooling sector foresees double-digit growth in 2021.
The agricultural equipment sector recorded 20% growth in 2020 amidst shortages of supplies, raw material, and parts. There are very high expectations for this sector in 2021 as both exports and domestic consumption continue to grow. The machinery and equipment sector is very optimistic about 2021 volumes, with the confidence indicator above 66 points.
Brazil’s industrial GDP is forecasted to grow more than 4% in 2021.
VW Trucks and Buses announced a new investment of $500 million to produce truck and bus chasses in their Resende plant.
The Brazilian government is focusing on fiscal reforms for 2021.
