VIII - 2011 MexIcan autoMotIVe Industry Reigniting the Engines aerospace INDUsTrY Rising to Maximum Height
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VIII - 2011
VIII - 20
11 •
MexIcan autoMotIVe Industry Reigniting the Engines
aerospaceINDUsTrY
Rising to Maximum
HeightNE0811_Forros.indd 1 8/20/11 12:52 PM
Great investment opportunitiesin the best place to live
Economic Development Secretariat+52 (777) 313 [email protected]
MorelosM E X I C O
• Located only 50 miles south of Mexico City, by far the largest market in Latin America
• Straight in the middle of the inter-oceanic highway; 260 miles from the Seaport of Veracruz on the Gulf of Mexico
L d l 50 il h f M i Ci
Strategic location for global business.
• Highly skilled workforce• Steady supply of engineering and science graduates
Hi hl kill d kf
Highly qualified human capital
• Host to 39 research centers ready to support innovative projects like no other region in Mexico
• More than 1,500 scientists, many of whom are involved in highly relevant topics such as biotechnology, applied physics, energy & fuels, materials, science, water technology and others
An outstanding innovation environment
• Famous worldwide for its ideal climate and natural beauty• Known as the “city of eternal spring,” Cuernavaca — the state Capital —
and its surroundings have become a cosmopolitan metropolis• A wide array of high quality entertainment, cultural and educational options
F
Exceptional life quality
21 cm27 cm
2 Negocios
From the CEO 6
Briefs 7
Business Tips mexico: light years of history in
aerospace development 10
Mexico’s Partner daimler 18
mastretta 20
mazda 22
metalsa 24
dina 26
geiq 32
safran 34
aernnova 37
honeywell 38
28Rising to
maximum height
Contents
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industRyreigniting the engines
Firm ground for growth.�e ������r��� ��r� ���� ����o�� �o����o� � ���r���r����re �� �������� ���� �����or���� Mex�
From Mex: 01(800)025-5580 From USA: 1(877)542-9793���e���or��o��om A Master Planned Community
• PlentyofhighlyqualifiedprofessionalsintheITIndustry.Mexico• istheAmericas’Spanish-speakingcountrywiththehighestratingin
humanresources,accordingtotheA.T. Kearney Global Services Location Index 2009.
• 23ITclustersin20states.Over60%ofMexicanstateshaveproductivecapacityinIT
• Business MonitorestimatesthattheITservicesandBPOsmarketwillgrow10%annuallyduringtheperiod2009-2013,whilethesoftwaremarketwillgrow9%inthesameperiod.
Mexico has everything to becoMe a key supplier for the world’s it Market:
58 MusicSirenS Of THe lyrical landS
61 Architecture cineTeca naciOnal
62 Film IndustrylOcaTiOn: mexicO
4 Negocios
46 DestinationPinacaTe: a lunar
landScaPe On THe greaT divide
54 GastronomyemPellón: liTTle mexicO
in new yOrk
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The lifestyle Contents
PrOméxicO
carlos guzmán Bofillceo
ilse oehler grediagaimage and communications director
sebastián escalantemanaging [email protected]
miguel Ángel samayoa advertising and [email protected]
natalia herrerocopy editing
q-10 cOmunicación
emma lucila lópez valtierra publisher
sergio anaya editor in chief
carlos molinadesign
this is an editorial project for proméxico by q-10 comunicación.
download the PdF version and read the interactive edition of Negocios ProMéxico at: negocios.promexico.gob.mx
Negocios ProMéxico es una publica-ción gratuita, editada mensualmen-te en inglés por proméxico, camino a santa teresa número 1679, colonia Jardines del pedregal, delegación Álvaro obregón, c.p. 01900, méxico,
diana KennedyA Brit with
a Mexican Palate
50
42maría del Pilar lunaUnderwater Time Travel
d.f., teléfono 54477000, página web www.promexico.gob.mx; correo electrónico [email protected] editor responsable: gabriel sebastián esca-lante Bañuelos. reserva de derechos al uso exclusivo no. 04-2009-012714564800-102. licitud de título: 14459; licitud de conteni-do: 12032, ambos otorgados por la comisión calificadora de publicaciones y revistas ilus-tradas de la secretaría de gobernación. issn: 2007-1795.Negocios ProMéxico año 4, número viii, agos-to 2011, se terminó de imprimir el 18 de agosto de 2011, con un tiraje de 15,000 ejemplares. impresa por cía. impresora el Universal, s.a. de c.v. las opiniones expresadas por los au-tores no reflejan necesariamente la postura del editor de la publicación. queda estrictamente prohibida la reproducción total o parcial de los contenidos e imágenes de la publicación, sin previa autorización de proméxico.
ProMéxico is not responsible for inaccurate information or omissions that might exist in the information provided by the participant companies nor of their economic solven-cy. The institution might or might not agree with an author’s statements; therefore the re-sponsibility of each text falls on the writers, not on the institution, except when it states otherwise. Although this magazine verifies all the information printed on its pages, it will not accept responsibility derived from any omis-sions, inaccuracies or mistakes. August 2011.
ENERGY
EnergeticAlliance
OFFICES ABROADNorth AmericaRegional DirectorWashington, [email protected]
Offices in: Chicago, Dallas, Houston, Los Angeles, Miami, Montreal, New York, Toronto and Vancouver
Latin Americaand South America Offices in: Bogotá, Buenos Aires, Guatemala, Santiago de Chile and Sao Paulo
Bogotá[email protected]
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Brussels [email protected]
London - Middle [email protected]
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Beijing [email protected]
Singapore / New [email protected]
ProMéxico Headquarters
+ 52 (55) 544 [email protected]
www.promexico.gob.mx
You might be unaware of this fact, but it is likely that your car was assembled or has components made in Mexico. Similarly, a plane in which you recently have flown most likely operates with equipment made in our country. In this month’s issue we will tell you about how Mexico has become a major player in the world’s automotive
and aerospace industries.
Mexico is among the world’s top ten car, truck and auto parts producers and is also the sixth vehicle exporter on the globe. Most of the world’s leading manufacturers operate in Mexico, due to our broad base of world class domestic suppliers. That has resulted in a robust environment for the automotive industry which has been the foundation for a flourishing aerospace sector. Mexico has become a preferred destination of Foreign Direct Investment (FDI) for aerospace businesses. Moreover, this sector has trebled in just five years, and there are currently 232 companies operating in Mexico’s aerospace industry, with over 30,000 employees.
The relevance of the automotive and aerospace industries in Mexico is very clear. Both sectors are important poles for FDI, create thousands of jobs and represent an important source of income for the country. Above all, these two sectors have interesting growth outlooks with promising investment and business opportunities.
Welcome to Negocios!
Carlos GuzmánCEOProMéxico
From the CEO.
briefs.
Honda de México, Honda’s pro-duction and sales company in Mex-ico, will build an automobile plant for production of fuel-efficient sub-compact vehicles for the Mexican and North American markets. At a cost of approximately 800 million usd, the new plant is scheduled to begin operations in 2014.
Expected to employ approxi-mately 3,200 associates at its full annual capacity of 200,000 units, the plant will occupy a 5.66 million square meter site in a suburb of Celaya, Guanajuato, about 210 miles east of the company’s two existing plants in El Salto, Jalisco, where Honda currently builds automo-biles, motorcycles and auto parts.
The facility will be the eighth Honda auto plant in North Amer-ica –and its 10th auto assembly line– and will boost Honda’s capital investment in its North American operations to nearly 21 billion usd. Honda employs more than 33,000 associates in North America. Production operations related to automobiles include four auto plants, two auto engine production facilities and two transmission plants in the US, two auto plants and an auto engine plant in Canada and an auto plant in Mexico.
The new Mexican facility will increase Honda’s automobile pro-duction capacity in North Amer-
ica from the current 1.63 million units to 1.83 in 2014.
The company will make a significant commitment to limit the environmental impact of its new plant in Mexico, which will employ advanced methods of en-ergy and emission reduction with the goal to become a “zero waste-to-landfill” factory. Honda has already 10 zero waste-to-landfill plants in North America, with four more operating with virtual-ly zero waste-to-landfill, including the two existing plants in Mexico.
Honda de México was estab-lished in September 1985 and be-gan sales of motorcycle products in 1987.
In March 1988, the com-pany began producing motor-cycle products and automobile service parts in El Salto, Jalisco.
An adjacent auto manu-facturing plant opened in 1995 with production of the Honda Accord, switching to produc-tion of the Honda CR-V in 2007.
Honda’s current annual auto production capacity in Mexico is 60,000 units. In 2010, sales of the Honda and Acura brand automobiles totaled ap-proximately 40,000 units in the country –an increase of 7% from the previous year.
www.honda.com
honda and mexico a productive partnership
autOMOtivE
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8 Negocios8 Negocios
Born in Italy, Made in Mexico, Sold in China
autOMOtivE
briefs.
After becoming the first Mexican-developed and manufactured med-icine to be approved by the US Food and Drug Administration (FDA), Anascorp –an anti venom pro-duced in Mexico by Instituto Bio-clon of Grupo Silanes– will be sold in the US market for use in treating patients suffering from the effects of
scorpion sting To that end, Instituto Bioclon will invest 20 million usd to build a new plant in Toluca, Estado de México, dedicated to the manu-facture of antidotes for scorpion, spider and snake bites.
www.bioclon.com.mx
www.silanes.com.mx
Bound from Mexicoto the US Market
Photos archive
PharMaCEutiCal industry
Mexico Power Group, a subsid-iary of Cannon Power Group, will invest 2.5 billion usd in a five-year period in three wind park projects that will generate a total of 1,500 MW on a surface area of more than 35,000 hectares, where ap-proximately 700 air generators will be installed.
The wind parks will be located in the cities of Tecate, Baja Califor-nia; Zacatecas, Zacatecas; and Co-zumel, Quintana Roo. The com-pany will invest one billion usd in each of the first two projects, while the third wind park in Quintana Roo will require a 500 million usd investment. Combined, the three projects will create approximately 900 direct jobs.
The wind farm in Baja Cali-fornia, known as Aubanel, will be located near the town of La Ru-morosa, approximately 60 miles East of San Diego and 15 miles South of the US-Mexico.
The Aubanel Wind Project is expected to be one of North America’s largest wind farms with potential capacity of 1,000 MW at various stages of development. The first phase of the project calls for the installation of 72 MW of wind turbines, supplied by Span-ish Gamesa.
Power produced from the first phase is expected to be sold to cus-tomers in Mexico, with subsequent project phases selling power to both Mexico and US customers.
According to the company’s es-timates, production in its Mexican facilities during the first phase will reach 312 mega Watts (MW) –of which 72 MW will be generated in Baja California, 180 MW in Za-catecas and 60 MW in Quintana Roo. This potential is equivalent to the power requirements of close to 100,000 homes in the three states.
www.mexicopowergroup.com
Cannon Power Group to Harvest Wind in Mexico
rEnEwablE EnErGy
Chrysler’s Toluca plant in Mexico will soon be shipping Fiat 500s to China. The plant, on which the automaker spent 550 million usd, is poised to pro-duce 120,000 vehicles a year; half are earmarked for the US market and the other half will be sent to Brazil and China. Sales in China are expected to begin on September 2011.
Anticipating the official launch of the standard 500 in the Chinese mar-ket, the automaker unveiled the Fiat 500 First Edition at Shanghai, a special version and limited to 100 units.
This edition of the small city-car displays several custom graphics on its sides, created by five Chinese designers –Leilei, Mee Wong, Benny Luk, Yan Wei and Nod Young–, to represent the link between Italy and the Asian country. The Fiat 500 First Edition is produced in Toluca, Mexico.
www.fiat.com
briefs.
The Japan-based corporation Mitsui & Co. will build a steel-processing plant in Mexico togeth-er with leading US electric fur-nace steelmaker Nucor Corp. as steel demand soars in that market.
Steel Technologies, a 50-50 steel-processing joint venture in the US between Mitsui and Nu-cor, will construct the new facility in Monterrey, Nuevo León.
Built at a cost of almost 78 mil-lion usd and scheduled to come online at the end of 2012, the facto-
The Tlaxcala 2011 Automotive Forum will take place on Sep-tember 1 and 2, 2011, at Tlaxcala’s Convention Center, to promote automotive businesses interested in developing suppliers, selling in-put or transferring operations to the central Mexican state.
Key note conferences to dis-cuss the advantages Tlaxcala offers to the consolidation of an automotive cluster, have been
programmed. Additionally, busi-ness meetings among Mexican and international companies will be held to consolidate strategic alliances. Tlaxcala 2011 Automo-tive Forum will also support the creation of small and medium businesses to supply large assem-bly companies and, in turn, drive the creation of jobs.
foroautomotriztlaxcala.mx
A Platform for Global Automotive Businesses
autOMOtivE
ry will feature cutting machines for steel sheets and state-of-the-art equipment for surface treat-ments. It will be able to process 800,000 tons of steel a year.
The joint venture will seek to supply top Japanese elec-tronics makers and automak-ers operating in Mexico, such as Toyota, Nissan and Honda.
www.mitsui.com
www.nucor.com
infrastruCturE
Stevedoring Services of America (SSA), won a 20-year concession to develop and operate a dock for containers and general cargo in the port of Tuxpan, Veracruz on the Gulf of Mexico.
Construction of the 300 million usd port –from where containers, steel and cars will be shipped to Europe, the US and South America– will begin by the end of 2011.
The new port will start operations by 2013 and it will be connected to a new highway being built by Mexican construction company ICA to give it access to central Mexico.
SSA already operates five container and cruise ports in Mexico on both the Gulf of Mexico and the Pacific coast: Acapulco, Cozumel, Manzanillo, Progreso and Veracruz.
www.ssamarine.com
Building a New Mexican Port
MEtallurGiCal industry
Steel Bet on Mexico
10 Negocios illustRation oldemar
In 1968, as Mexico was preparing to host the 19th Olympic Games, the country was launched into the satel-lite era on the wings of NASA’s ATS-3, which enabled it to capture Intelsat
III and IV signals. That same year, a satellite station was developed in Tulancingo, Hidalgo, while Mexico’s participation in the Intelsat consortium made it possible to transmit the 1968 Olympic Games and the 1970 World Cup to audiences worldwide. The earth stations that were set up at this time would serve as basic infrastructure for the develop-ment of the country’s own satellite system later on in the 1980s.
In the mid-1980s, Mexico’s agreement with Intelsat expired and it acquired its own satellite system. The putting into orbit of the Morelos I and Morelos II satellites on June 17 and December 17, 1985, respectively, became a landmark in the development of the coun-try’s satellite capabilities, although the latter didn’t come into operation until 1989.
The Morelos satellites were followed
by the Solidaridad system. Solidaridad I was launched on November 13, 1993 to replace Morelos I. Like the first generation of Mexican satellites, the Solidaridad ones were built by the US firm Hughes Aircraft Co. (today Boeing Satellite Systems International). Solidaridad II was launched into space shortly afterwards in 1994.
Solidaridad II operates on an inclined or-bit, which will help prolong its useful lifespan until 2013. This satellite is used exclusively for national security purposes.
The following generation of satellites was produced by Satélites Mexicanos (Satmex). Satmex V was put into orbit on December 1998, while Satmex VI was launched in 2006.
Initially, Mexico purchased satellites from foreign manufacturers and gained wide expe-rience in this area, but the efforts of academic institutions like the National Autonomous Uni-versity of Mexico (UNAM, for its acronym in Spanish) and the Autonomous University of Puebla (BuAP, for its acronym in Spanish) also deserve to be mentioned. These institutions,
together with research centers throughout the country, were pioneers in the development of Mexican satellites and are among the few academic bodies engaged in such programs worldwide. Their focus is on small or micro-satellites weighing between three and 50 kilos. Designed and manufactured to perform tasks and missions formerly reserved for their larg-er predecessors, these lightweight versions are cheaper to put into orbit if we consider that it costs 10,000 usd to put one kilo of material into space, plus 85 kilos of fuel.
In 1945, the UNAM put together a team of researchers from the Physics and Geophysics institutes. Their activities were formalized in 1962 with the creation of the Department of Outer Space at the Geophysics Institute, which coincided with the setting up of the National Commission for Outer Space at the initiative of the Mexican government. For 14 years, this commission was entrusted with coordinating and promoting Mexico’s space activities.
The Department of Outer Space was re-named the Department of Space Studies
MexicoLight Years of historY in aerospace deveLopment from the first mexican satellites pUt into orBit in the mid 1980s to the creation of the mexican space agency in 2010, mexico has set Up the conditions for the development of an aerospace indUstry, via scientific research programs, technological innovation and highly-qUalified hUman resoUrces.
by maría cristina rosas*
in 1976. However, it wasn’t until 1985, when the Morelos satellites were launched, that the Space Activities Interdisciplinary Group (GIAE) was established. The government sub-sequently began to take a greater interest in the development of satellites and the Universi-ty Space Research and Development Program (PUIDE) was created in 1990.
Five years of work went into the UNAM-SAT-1 project. The goal was to build a satel-lite capable of collecting data on meteorite paths to determine whether or not they were on collision courses with Earth’s atmosphere. This was the first 100% Mexican-made satel-lite, which benefited from the work of radio operators. The satellite weighed 10 kilos, had a volume of 10 cubic liters and was shaped like a 23-centimeter cube with quadrangular modules. Its computer was equipped with a microprocessor and was powered by a com-bination of batteries and solar cells. The UN-AMSAT-1 satellite would have had a useful life of four-and-a-half years had it not been for a failure with the Star rocket that was to put it
into orbit: during the fifth stage of launch, the Russian-made rocket exploded and the tiny satellite disintegrated.
UNAMSAT-2 was built parallel to UNAM-SAT-1 as a twin satellite that would remain on earth to simulate the latter’s orbit. It wasn’t scheduled for completion until 1995, but after the failed launch of UNAMSAT-1, its twin was put into orbit as UNAMSAT-B. The launch was negotiated with the help of the Moscow Aeronautics Institute (MAI) and took place on September 5, 1996, at the Plesetsk launch com-plex. Five hours after liftoff, UNAMSAT-B suc-cessfully separated and reached an altitude of 1,000 kilometers and an orbit inclination of 83º from the equator. It began transmitting to the portable station set up in Plesetsk at 11:00 p.m.
UNAMSAT-III –whose creators claim it can predict earthquakes up to five days before they occur– is scheduled for launch in 2011.
Another project in which several of the country’s academic institutes have partici-pated is the Experimental Satellite Program (SATEX) for the development of a family of
buSineSS TiPS
the satellite technology
developed By mexico is now in
demand By other coUntries.
for example, vietnam, which
plans to laUnch its second
satellite in 2012, called on
the technological expertise
of the Unam, whose scientists
have developed sensors
and processors to improve
the orientation of space
satellites.
12 Negocios illustRation oldemar
small, low-cost experimental satellites. Set up under the auspices of the Mexican Com-munications Institute, the UNAM and the BUAP are just two of the academic entities participating in this program along with the National Polytechnic Institute (IPN, for its acronym in Spanish), the Ensenada Scien-tific Research and Higher Education Cen-ter (CICESE, for its acronym in Ssipanish) and the Guanajuato Mathematics Research Center. Weighing in at 50 kilos, SATEX I will take satellite photos of Mexico, conduct laser beam tests to establish communication links and high-frequency band research, among other tasks.
The satellite technology developed by Mexico is now in demand by other coun-tries. For example, Vietnam, which plans to launch its second satellite in 2012, called on the technological expertise of the UNAM, whose scientists have developed sensors and processors to improve the orientation of space satellites. These components are part of a complex electronic system that
stabilizes and situates small satellites in orbit. By reducing the mass, and therefore the cost of experimental satellites that are so vital to the development of space technology, these innovations constitute a breakthrough for Mexico’s fledgling space technology industry. The Vietnamese Space Technology Institute has since entered into an agreement with the UNAM to support and promote research in this area in Vietnam.
In 2000, a National Forestry Inventory was compiled using satellite imaging technology. The Mexican Navy, the Mexico City Govern-ment and the National Commission for Natu-ral Protected Areas have also employed this technology to obtain real-time diagnoses of the state of country’s forests. One of its more concrete applications has been to assist in the preservation of the Monarch butterfly sanctu-ary, which has been monitored since 1999 us-ing high-resolution photographs taken by the satellites designed by the UNAM.
And while the space race is indubitably dominated by a handful of countries, its in-
terests are international, particularly when it comes to the building of parts. Mexico manu-factures components for space vehicles and is the main receptor of investment in the manu-facturing of aerospace products worldwide. Between 1990 and 2009, the country was the sixth largest receptor of new investment in space research and development. Some be-lieve the day when Mexico has the capacity to build complete space vehicles isn’t far off. The 200-odd companies operating in the sec-tor –most of them foreign– currently employ some 30,000 people, but we could see rapid progress from primary assembly to the manu-facturing of major technology.
The issue is high on Mexico’s agenda. On July 30, 2010, a decree establishing the Mexi-can Space Agency was published in the Offi-cial Gazette. It is hoped that this agency will help lay the groundwork for a policy to coordi-nate the diverse activities currently being con-ducted in isolation by government agencies, academic institutes and private organizations in the aeronautical, space, telecommunica-
tions, information and communications tech-nologies among other related sectors.
In 2010, Mexico hosted several multi-lateral forums related to the space agenda, including the Plenipotentiary Confe rence of the International Telecommunications Union (ITU), held in Guadalajara, Jalisco, on Novem-ber 4 - 22, and the Sixth Space Conference of the Americas, held in Pachuca, Hidalgo, on November 15 -19 –both major global events.
The government’s active presence at such forums is thought to have had sway in the deci-sion to elect Mexico to preside over the govern-ing board of the Gene ral Secretariat of the Re-gional Center for Education in Space Science and Technology for Latin America and the Caribbean (CRECTEALC) –a duty that was transferred to Brazil in August 2010.
The Mexican Space Agency will collabo-rate on security issues, help safeguard the country’s sovereignty and promote the edu-cation of scientists specialized in the develop-ment of satellite systems that employ home-grown infrastructure and technologies.
According to the Mexican government, the creation of this agency opens up opportuni-ties to foster regional and national leadership via scientific research programs, technological innovation strategies and policies for the devel-opment of an aerospace industry and the edu-cation of highly-qualified human resources.
It will also generate investment and encour-age the creation of highly-skilled jobs, ensuring that Mexico remains an attractive option in a sector that is strategic to the development and progress of our nations. n
*Professor and researcher in the Political and
Social Sciences Faculty, National Autonomous
University of Mexico (UNAM).
in 2000, a national forestry
inventory was compiled Using
satellite imaging technology.
the mexican navy, the mexico
city government and the
national commission for
natUral protected areas
have also employed this
technology to oBtain real-
time diagnoses of the state of
coUntry’s forests.
buSineSS TiPS
14 Negocios Photos archive
reignitingthe engines
Globally, the automotive indus-try is an engine of develop-ment. It plays a strategic role in national economies not only because it is an important
source of investment and employment but also because it fosters the development of other high value added sectors.
Mexico is a clear example. Historically, the automotive industry has been a strategic sec-tor for Mexico’s development. On the basis of the jobs it creates and the foreign exchange it generates, its share of the national economy makes it the second largest industry in Mexi-co, surpassed only by the oil industry. In ad-dition, this industry has paved the way for competitiveness in regions where automotive companies have been established. This in turn has led to more highly skilled and highly paid jobs –among other results– and to greater de-velopment of human capital. By the same to-ken, the industry has created a major cascade of technical capabilities that are being applied in other sectors, such as electricity, electronics and aerospace.
Mexico provides automotive companies with tremendous business opportunities. This is due to the strength of a unique market that has transformed into one of the centers of the global automotive industry. In the global auto-motive sector, Mexico has become an export platform. The largest companies in the world are increasingly utilizing Mexico as the sole supplier of some of their newest products. Al-
though the industry has been affected by the economic crisis, its resilience has enabled it to weather the economic downturn. Thus, Mexi-co has managed to forge ahead and become a strong player in the global market.
In the past fifteen years, foreign companies in Mexico have established a number of as-sembly plants. The competitive advantage of vehicles and engines manufactured in Mexico stems from low labor costs and technological innovation. Furthermore, Mexico offers im-portant tax benefits to multinational automo-tive companies seeking to establish assembly plants in the country .
In recent years, this has led major manufac-turers to strengthen their presence in Mexico, solidifying the country’s status as a center of automotive production. These major market players have also invested in “compact” and “subcompact” vehicles, relying on the fact that Mexico offers one of the best platforms to meet the growing export demand for smaller cars by consumers worldwide. Seven of the world’s largest manufacturers have chosen Mexico as their production center and export platform, some of which have been operating in the country for more than eight decades. Only three American manufacturers, GM, Ford, and Chrysler, the leading German carmaker Volkswagen, and major Japanese companies such as Nissan, Honda, and Toyota operate as-sembly plants in Mexico, and together produce 40 car models in the country. In 2008 alone, companies like GM, Ford and VW announced
investments totally more than 7 billion USD for the manufacture of entire vehicles and en-gines and transmissions, among other parts.
The role of the automotive industry in the Mexican economy is critical, given the impact it has on other core industries such as steel, glass, and rubber. It is regarded as an industry that substantially impacts the country’s eco-nomic welfare.
With an output of more than 58 million units in 2010, Mexico reaffirmed its position as the ninth largest producer of vehicles world-wide. The automotive industry is the second-most strategic sector of the Mexican economy after the oil industry and the most important subsector of the manufacturing industry.
Foreign sales continue to be the primary focus of vehicle production in Mexico. Given the geographic proximity and economic and business links between Mexico and the US, 81% of Mexican automobile production is intended for export, with 80% of the manu-factured vehicles going to the US –11 out of every 100 vehicles sold in the US are made in Mexico–, 11% to Latin America and 9% to the European Union.
A majority of the main North American, European and –to a lesser degree– Asian (primarily Japanese and Korean) auto parts companies have established operations in Mexico. There are about one thousand auto parts companies in Mexico, of which 70% are foreign owned and 30% are domestically owned. Of all companies in this sector, 34.5%
mexico has estaBlished itself as an attractive destination for aUtomotive sector investment. the world’s largest aUto companies have placed their faith in the prodUction platform that mexico provides for manUfactUring vehicles to Be sold in a variety of markets aroUnd the world. today mexican manUfactUred vehicles are among those with the largest volUme of sales for their respective Brands.
are first tier manufacturers (direct suppliers to the finished goods industry). These compa-nies offer faster and more streamlined sup-ply for these systems, and adjust to the qual-ity needs established by the assembly plants. The remaining companies manufacture in-puts and raw materials supplies at the second and third tiers of the production chain.
Owing to new production systems imple-mented by the finished goods industry to in-crease its productivity, some of which require just-in-time delivery of parts directly to the plant site assembling that part of the vehicle, first-tier suppliers have a close relationship with auto manufacturers and take on more responsibility in the manufacturing process of the final product. Thus, the finished goods industry is increasingly becoming what could be considered a “subcontractor” of supplier companies that are directly involved in the production process, since the suppliers inte-grate systems (and not just parts) directly in the production line.
The most dynamic export activity is evi-dent in products such as harnesses, seats, gaso-line motors, body parts, security modules for airbag systems, and seatbelts, a part for which Mexican industrial production is very com-petitive globally. n
SPecial feaTure mexican aUtomotive indUstry
16 Negocios16 Negocios
*Estimated volume.
Productionof light vehiclesmillions of units
AutomotiveIndustry
at a Glance
In 2010, the Mexican automotive industry exported
57.62 billion USD(including cars, buses, trucks and autoparts).
... And is the world’s 9th
largest car manufacturer.
Mexico is ranked 6th among the world’s top automotive exporters...
Mexico exports
82.3%of its automotive production: in 2010 Mexico produced 2.26, of them, 1.86 million were exported.
18 of the world’s most important Original Equipment Manufacturers (OEM) have manufacturing facilities in Mexico.
More than 300 Tier 1 suppliers operate in the Mexican autoparts industry.
1.62005
1.52009
2.02006
2.02007
2.12008
2.22010
2.32011* 2.4
2012*
Sources: BBVA with data from INEGI and PricewaterhouseCoopers Mexico/AMIA/ ProMéxico.
1,1862005
1,5372006
1,6132007 1,661
2008
1,2232009
1,8592010
96
Exports oflight vehicles(millions of units)
Foreign DirectInvestmen in Mexicanautomotive industry(millions of USD)
2,176 1,510 1,974 1,106 1,207 683
inFogRaPhic oldemar
*Estimated volume.
Productionof light vehiclesmillions of units
AutomotiveIndustry
at a Glance
In 2010, the Mexican automotive industry exported
57.62 billion USD(including cars, buses, trucks and autoparts).
... And is the world’s 9th
largest car manufacturer.
Mexico is ranked 6th among the world’s top automotive exporters...
Mexico exports
82.3%of its automotive production: in 2010 Mexico produced 2.26, of them, 1.86 million were exported.
18 of the world’s most important Original Equipment Manufacturers (OEM) have manufacturing facilities in Mexico.
More than 300 Tier 1 suppliers operate in the Mexican autoparts industry.
1.62005
1.52009
2.02006
2.02007
2.12008
2.22010
2.32011* 2.4
2012*
Sources: BBVA with data from INEGI and PricewaterhouseCoopers Mexico/AMIA/ ProMéxico.
1,1862005
1,5372006
1,6132007 1,661
2008
1,2232009
1,8592010
96
Exports oflight vehicles(millions of units)
Foreign DirectInvestmen in Mexicanautomotive industry(millions of USD)
2,176 1,510 1,974 1,106 1,207 683
SPecial feaTure mexican aUtomotive indUstry
18 Negocios Photos courtesy of grupo daimler
daimLer innovationand diveRsity
Recently, Mexico City’s govern-ment unveiled plans to trans-fer all public transport within the metropolis over to alterna-tive drive systems, such as gas,
biogas or electrically powered systems within the next few years.
As part of that strategy, the city has de-cided to use trucks running on natural gas or biomethane for its waste-disposal services. Mexico City’s government is planning to use the Econic model from German automaker Daimler to move refuse out of its urban zone. With a 12-ton cargo capacity, the Econic deliv-ers 50% less noise than a conventional truck and when used with natural gas is 40% cheap-er than a diesel unit and up to 90% cheaper with biogas. In addition, it emits 20% less car-bon dioxide.
The eco-friendly truck, marketed under the Mercedes-Benz seal, is the result of Daim-ler’s commitment to quality and innovation, a commitment that has taken the company to a leading position in the Mexican automotive sector.
Daimler is the world’s fifth largest automo-tive company, with more than 380,000 em-
ployees worldwide. Daimler markets some of the best known and respected brands and is the largest commercial vehicle manufacturer in the world.
Grupo Daimler is Daimler AG’s subsid-iary in Mexico. Daimler has been present in Mexico for more than 20 years and today it employs more than 5,000 people across the country. The company manages three busi-ness units: Daimler Vehículos Comerciales México, Daimler Financial Services and Mer-cedes-Benz México.
Daimler Vehículos Comerciales, has an outstanding position in terms of sales in Mexi-co and has always innovated in the market for passenger and cargo vehicles. This business unit has three manufacturing facilities in the country. One, located in Santiago Tianguisten-co, Estado de México, produces Freightliner-branded heavy and medium-duty trucks for domestic Mexico sales, as well as for export to Latin America, the US and Canada.
A second plant, located in Saltillo, Coa-huila, manufactures Freightliner’s Cascadia heavy-duty Class 8 truck. This facility can produce up to 30,000 Cascadia trucks annu-ally for sale in the US, Canadian, and Mexican
markets. In the first quarter of 2011, Daimler’s plants in Estado de México and Coahuila pro-duced 17,866 units.
In García, Nuevo León, a third Daimler facility assembles buses and Mercedes-Benz chassis. In the first quarter of 2011, Daimler’s plant in Nuevo León produced 947 buses. The plant, which began operating in 1994, has ap-proximately 350 employees.
In recent years, Daimler has gradually shifted part of its production from the US to Mexico and now accounts for over 50% of the commercial vehicle market, according to data from the National Association of Bus, Truck and Tractor Producers (ANPACT, for its acro-nym in Spanish).
The company holds 26.9% of the NAFTA market for Class 5-8 commercial vehicles (7.3 tonnes and more ).
The Daimler García plant has gotten better and better over the last 15 years. Its history actually began in 1993, when Daim-ler-Benz launched a partnership with the Brazilian bus-body manufacturer CAIO and began assembling urban buses. The front-engine bus chassis were built by Mercedes at its São Bernardo do Campo plant, the bus
With more than two decades of presence in Mexico, Daimler has earned a leading position in the domestic automotive market, thanks to its constant innovation and the diversity of its products and services.
mexicO’S ParTner enersavemexicO’S ParTner daimler
bodies by CAIO. Soon after the partnership was launched, the Monterrey plant went into operation and began assembling buses with rear-mounted engines.
In 1998, the plant officially took over the bus chassis operations previously carried out by the Santiago Tianguistenco plant, producing its first chassis in 1999. Truck assembly opera-tions were subsequently launched as well, and in 2000 the facility established a joint venture with Marcopolo.
Daimler invested around 80 million usd in its Nuevo León plant between 1993 and 2009. Investment in 2007 and 2008 totaled approxi-mately 1.6 million usd.
The Nuevo León facility participates in a development network with Mercedes-Benz sister plants in Brazil and Germany. Among other things, high-altitude tests for various types of commercial vehicles are carried out in Mexico.
In the first quarter of 2011, Daimler manufac-turing facilities in Mexico had an output of 18,813 units, which represent a 49.7% share of the Mexi-can market for heavy vehicles in that period.
Aside from its assembling plants, Daimler Vehículos Comerciales also has an interna-
tional distribution center of autoparts in San Luis Potosí, where the company manages a catalogue of more than 95,000 parts.
Mercedes-Benz Mexico is responsible for importing and marketing a wide range of cars of the brands Maybach, Mercedes-Benz, AMG and Smart. The brand of the star remains the most aspirational premium car segment and the number one in customer satisfaction. In May 2011, Mercedes-Benz celebrated a mile-stone in Mexico. At the end of that month, Mercedes-Benz Mexico reported an increase of 74.5% in sales over the same period in 2010, achieving sales of 930 units, Mercedes-Benz 531, 101 298 Smart and Mercedes-Benz vans.
www.daimler.com.mx
in recent years, daimler has gradUally shifted
part of its prodUction from the Us to mexico and
now accoUnts for over 50% of the commercial
vehicle market, according to data from the
national association of BUs, trUck and tractor
prodUcers (anpact, for its acronym in spanish).
20 Negocios Photos courtesy of mastretta
the mastretta mxt
speeds to the top of its cLassThis high-performance Mexican-made sports car holds its own with the big boys. Serial production begins this year, so keep a look out for it in the fast lane.
With a top speed of 230 kilometers an hour, the Mastretta MXT is leaving its competitors behind, proving that
Mexico has both the capacity and the ability to design, manufacture and market high-perfor-mance sports cars for the international market. Luxury, comfort, functionality and style make this coupé a pleasure to drive.
First presented in 2008 at the British Interna-tional Motor Show in London, it wasn’t until 2011 that serial production of the MXT actually got un-derway. The first units have barely rolled off the
assembly line but half of this year’s production –100 cars– is already spoken for and plans are afoot to scale annual output up to 500 units over the next five years. Innovation and quality are the drivers of Mastretta’s success. There is simply no other coupé like it on the market: it’s easy on the eyes, weighs just 930 kilos, has a 250 horsepower (HP) engine and can reach 100 kilometers an hour in less than five seconds.
In terms of features, it can be compared to a prestigious British-made sports car, the Lo-tus Elise 1.8 R; except that, at 56,000 usd, the Mastretta has a performance/price ratio that’s hard to match. This may be the first high-per-
formance sports car designed and produced from start to finish in Mexico but as the world’s eighth leading vehicle assembler, no one can say the country lacks experience in putting these things together
According to industrial designer Daniel Mastretta, who, along with his brother Carlos, a skilled business administrator, owns Mastretta Cars and the MXT patent, it was a passion for cars and the technical know how of Mexicans that gave rise to the concept.
It all began in 1987, when the Mastretta brothers founded Tecnoidea (which spawned Mastretta Cars), that consisted of an office and
SPecial feaTure mexican shoe indUstry
a small manufacturing plant manned by five employees. The company’s main line of busi-ness is consulting services to help car manu-facturers improve the efficiency and economy of their production processes and the develop-ment of new products, like bodies for trucks, from the design to the production stage.
Tecnoidea has designed more than 25 bus models based on a process that begins with a hand drawing, followed by digitalized sketches and mock-ups. At the request of its customers, the company soon began designing repli-cas of sports cars like the Porsche Speed-ster. Creating a car of its own seemed a natural progression for the company, says Daniel Mastretta. In 1996, the MXA, a sports car mounted on a Volkswagen chassis, was unveiled. Only 15 years sepa-rate the MXA and the MXT but their design and technology are light years apart.
Mastretta Cars describes the MXT as a high-performance vehicle that combines func-tionality with the agility of a sports car. Featur-ing an extruded aluminum chassis and car-bon- and glass-fiber reinforced plastics that are extremely resistant yet lightweight, the MXT is more fuel efficient and environmentally friend-ly than others in its class.
The suspension offers exceptional grip and traction and is complemented by a 2.3-liter in-line-four engine with 250 hp and turbocharg-er, plus 257 pound-feet of torque. The engine is in front of the rear wheels, connected to a manual five-speed MTX-75 gearbox.
The MXT was designed and built around its interior, which has two side-by-side seats that were positioned as low as the chassis would permit to optimize the sports car expe-rience.
Each component is made to measure. This is a car that combines advanced technology and the artisan’s eye for detail; innovation and in-depth knowledge of the industry.
Designing and producing a vehicle of this caliber required industrial expertise to get its weight down and to produce certain parts, as well as engineering know how to improve production line efficiency. It so happens that
Mexico has highly-skilled people in all these areas and in related processes, including the assembly of this type of car, which is much cheaper in Mexico than in other countries that have specialized in this niche.
Carlos Mastretta has said in several inter-views that the launch of the MXT will position Mexico not just as a manufacturer but also as a developer of high-performance sports cars.
The MXT will be sold in Mexico at auto shows and on the Internet and potential buyers
will be targeted by using direct mar-keting strategies. Foreign sales will be handled by dealers specializing in high-performance sports cars.
Mastretta already has a distribu-tor lined up in the UK –the MTX will be adapted to right hand drive for this market– and another in France, which
will begin marketing it in Europe in the last quarter of 2011. Germany, Italy, Denmark, Chi-na and Russia are next on the list, with Brazil being targeted in the medium term.
Carlos Mastretta believes the MXT has what it takes to conquer the elite world of luxury sports cars. It’s certainly off to a speedy start! n
www.mastrettacars.com
there is simply no other coUpé like it on
the market: it’s easy on the eyes, weighs
JUst 930 kilos, has a 250 hp engine and can
reach 100 kilometers an hoUr in less than
five seconds.
mexicO’S ParTner mastretta
22 Negocios Photos courtesy of mazda
In just six years, Mazda has garnered fa-vor on the domestic market. The Japa-nese car manufacturer now ranks eighth among the 34 automotive firms vying for consumers’ business. Having started out
with a market share of 0.6%, as of June 2011, Mazda has upped that figure to 3.2%.
“We deem Mazda’s results in Mexico sat-isfactory. We are ranked eighth out of the 34 companies operating in the sector. We started out with just five dealerships and now have 31 throughout the country, thanks to the team-work and ongoing efforts of the business chain, haulage contractors, publicists and everyone else who forms part of the value chain that has been key to our success,” says Mazda market-ing director for Mexico, Miguel Barbeyto.
Satisfactory may be an understatement be-cause it is on the basis of these results that Maz-da has decided to build a manufacturing facility in Salamanca, in the central-western state of Guanajuato. The facility is expected produce up to 140,000 vehicles a year by 2013.
According to Barbeyto, “construction be-gan more than a month ago on a plant in Mex-ico to start exporting to Central and South America and to supply local dealerships. The brand’s performance was one of the reasons corporate management decided to include Mexico as a production point. Had it not been for these results, Mazda would have never set its sights on Mexico but having seen the num-
mazda, from 0.6 to 3.2% in six Years The Japanese car manufacturer plans to invest half a million usd in a plant that will be producing 140,000 vehicles a year for export to Central and South America by 2013.
by antonio vÁzqUez
bers, the decision was made and the new facil-ity will supply the Latin American market and export to the US in the medium term.”
Mazda plans to channel some 500 million usd into the construction of the new facility, which will employ over 3,000 people once it is up and running. The plant will produce Mazda 2 and Mazda 3 models, as well as engines for the firm’s various automobile lines.
“The project is quite ambitious. The Mazda facility is key to Mexico and that is good news, not just for the country but also for those of us who work here because it means the company is expanding,” says Barbeyto.
Mazda will have a 70% stake in the Mexi-can plant –its first manufacturing facility out-side Asia, where it has three factories in China and Thailand– and the remaining 30% will be managed by Sumitomo Bank, one of the com-pany’s main financial partners.
“There are several variables that make Mexico a good option for Mazda,” says Bar-beyto. “Mexican labor is excellent, duties are favorable and, geographically, we are posi-tioned between the US and South America. Looking forward, the Mexican plant will focus on supplying Brazil. Mazda doesn’t currently have representation there, which is why that is included in the company’s expansion plans.”
Brazil is the world’s fourth largest consumer of automobiles. In 2010, some 3.5 million vehicles were sold there, compared to 824,000 in Mexico.
cuSTOmer SaTiSfacTiOn In 2011, the Mazda 2, a young, sporty, subcom-pact car, was launched on the Mexican market.
“The Mazda 2 competes on the highly con-tested market for subcompact vehicles, which attracts 32% of Mexican consumers, mainly young, trendy consumers aged between 18 and 24 who are looking to purchase their first car. This is a vehicle that is easy to handle and that has all the punch and attributes of a sports car without skimping on safety,” says Barbeyto.
Peace of mind comes with standard safety features that include antilock brakes,
mexicO’S ParTner mazda
advanced front airbags and a Triple H body construction, with side and horizontal steel bars for extra protection in the event of a col-lision.
Barbeyto believes the Mazda product is fundamental to customer loyalty. “We grew up with the new generation of Mazda prod-ucts, well thought out designs and technol-ogy that makes these vehicles fun to drive –precision suspension, a highly responsive transmission and a sporty design.”
He also believes “after-sales support to be vital to securing customer loyalty. Another
key factor is that we keep our processes simple, because we put ourselves in the cus-tomer’s shoes,” he says.
Like the rest of the world, Mexico was hit by the global economic recession but Mazda was able to weather the bleak international panorama by negotiating price adjustments with its dealers, while remaining competi-tive. The success of the strategy was reflect-ed in its market share, which rose to 2.5% in 2008 and 2009.
In 2010, Mazda sold 25,000 units in Mexi-co and aims to improve on that in 2011, given
that the domestic market for automobiles is growing at an average rate of 11% annually.
“There are lots of major brands on the Mexi-can market, all offering prestigious products and good services. We take a look at what the competition is doing and try to offer what they don’t in order to differentiate ourselves. Our customers remain loyal because of the product, after-sales support and excellent standard of service we offer,” sums up Miguel Barbeyto. n
www.mazda.com
www.mazdamexico.com.mx
in 2010, mazda SOld 25,000 uniTS in mexicO and
aimS TO imPrOve On THiS in 2011, given THaT THe
dOmeSTic markeT fOr auTOmObileS iS grOwing aT
an average raTe Of 11% annually.
24 Negocios24 Negocios Photo courtesy of metalsa
by antonio vÁzqUez
metaLsa Half a Century of shaping the Automotive industryMetalsa is one of Mexico’s top auto part producers, with 50 years’ experience on the international market.
mexicO’S ParTner metalsa
For the last half century, Metalsa, a fully Mexican-owned company, has been supplying structural com-ponents for light and commercial vehicles.
Specializing in chassis and suspension struc-tures, engine supports and the stamping and assembly of structures and fuel tanks for auto-mobiles and trucks, the company also manufac-tures side rails, cross members and chassis for heavy trucks and buses.
Metalsa was founded in 1956 and is today part of the Proeza Group. The company has been so successful over the last five decades that it now supplies the international market and boasts manufacturing facilities, offices and technology centers at strategic locations around the world, enabling it to respond quickly and efficiently to the needs of its clients. Metalsa has a presence in Germany, Argentina, Australia, Brazil, the US, India, Japan, Mexico, the UK and Venezuela and employs some 6,300 people worldwide.
Last year saw the opening of industrial fa-cilities in Jamshedpur, India, for the production of side rails for medium and heavy trucks, al-though the company set up commercial offices there back in March 2008. The new facility has created 300 direct jobs and currently manufac-tures 180 Metalsa-brand side rails a year.
Comprehensive manufacturing capabilities such as resistance welding, laser, plasma and mechanical cutting, robot piercing, e-coating and other high-tech processes employed at the Jamshedpur facility have attracted companies like Tata Motors and Mahindra Navistar, who now feature among Metalsa’s main customers.
In 2009, Metalsa bolstered its operations with the acquisition of Dana Holding Corpora-tion’s structural products business for 150 mil-lion usd.
Its Apodaca facility in the northern Mexican state of Nuevo León has the capacity to produce an impressive 200,000 Toyota auto structures and as many as 50,000 chassis a year.
According to figures published by the Min-istry of Economy, total output by Mexico’s au-tomotive industry was valued at 60 billion usd in 2010, which translates into annual growth of 45%.
Metalsa’s clients include Autocar, Blue Bird, Chrysler-Fiat, Freightliner, Ford, General Mo-tors, Hino, Iveco, Kamaz Mahindra, Mazda, Mercedes-Benz, Navistar, Nissan-Renault, Osh-kosh, Paccar, Pierce, Scania, Tata, Terex Advance Mixer, Thomas, Toyota, Volkswagen and Volvo.
What sets the company apart from its competitors is the full range of services it of-fers, from after sales support to the design and manufacturing of products, including proto-types and virtual and physical validation tests, all conducted under stringent quality control standards.
Virtual design optimization and testing tools are vital to product innovation at Metalsa. Once the design has been approved by the customer, life-sized physical prototypes are manufactured using state-of-the art technologies like rapid or stereolithography prototyping to build so-called “soft” components.
Over the years, Metalsa has perfected its In-novation and Technology Management Model. Applauded by customers and the Mexican government alike, the model won the 2005 Na-tional Technology Award, the most prestigious in its category.
Metalsa’s reputation for meeting quickly and effectively the needs of its customers can be attributed to its corporate culture, which is based on the premise that only people with quality perspectives can create quality products and render quality services.
As such, its most prized, if not its most valu-able asset, are its employees, whose growth is fostered on both a professional and personal level. At Metalsa, quality isn’t just a work model; it’s a way of life. n
www.metalsa.com.mx
the company has Been so sUccessfUl
over the last five decades that
it now sUpplies the international
market and Boasts manUfactUring
facilities, offices and technology
centers at strategic locations
aroUnd the world.
26 Negocios Photos courtesy of dina
Dina,
the Return of aWarrior With 60 years of experience, Dina is a living example of innovation in the Mexican automotive industry.
by antonio vÁzqUez
mexicO’S ParTner dina
“Dina trucks are warriors, built to take on road conditions in Latin American countries,” says Víctor Pliego Aguilar, export director of the passenger vehi-cles and heavy trucks that this Mexican
company has been producing for over 60 years.Dina (Diesel Nacional) began life in 1951 as a
public sector company. Back then, the compa-ny had an agreement with Fiat of Italy for tech-nical assistance in the manufacturing of trucks and buses. In 1960, it signed up with Renault of France and for the next 10 years, up until 1971, it manufactured auto parts for Renault vehi-cles. Production of NT and NH engines began in 1968 and an alliance with The Flxible Corpo-ration resulted in the manufacture of the Flx-liner bus, known in Mexico as Dina Olímpico.
In 1973, Dina purchased a 60% share in Mo-tores Perkins to help it compete against Chrys-ler, which was its main rival at the time. The company began making passenger vehicles in the 1980s and entered into an alliance with General Motors for the manufacture and ex-port of vehicles and parts in 1985.
In 1989, the company was taken over by the Grupo G consortium, marking a period of in-novation in vehicles and automotive plastics. Dina began trading on the New York Stock Ex-change in 1990 and by 2002 annual production had topped 30,000 units.
International treaties paved the way for the dismantling of trade barriers and for five years, Dina has been working on a strategic process focused mainly on exports and the search for new markets.
“With the opening of the domestic market, it was no longer feasible to produce so many vehi-cles. Today we have the capacity to manufacture some 6,000 vehicles a year, half of which are for export. Most of our exports go to Nicaragua and the US but we are in talks with Peru and Colom-bia and have distributors in El Salvador, Hondu-ras and Guatemala. What we’re doing today is
‘wooing the customer’ because we’ve been out of the picture for five years,” says Pliego.
Dina, he says, is a leader in technology for heavy vehicles and buses. “We are the only manufacturer in Latin America that makes chassis and bodies at the same facility.”
The company’s manufacturing facility is in Ciudad Sahagún, in the central state of Hidalgo, and employs some 550 people.
In 2010, Dina reported sales of 10 million usd. Even during the time it was absent from the marketplace and in 2008 and 2009, when the global recession was at its peak, it was one of the few companies to post growth, increasing its share of the domestic market from 1 to 2.5%. Today, Dina boasts a 5% share of the Mexican market.
“This year we aim to do even better,” says Pliego, adding that “The panorama in Nicara-gua has been good. Business has been booming and we were able to win a tender for 350 buses because the Mexican government, together with Nicaragua, put up funds under the San José Free Trade Agreement. Things are looking up and we are about to close a deal with Colom-bia which should produce tangible results by the summer of 2012. Dina’s future is shining.”
aS STrOng aS THe firm THaT makeS THemDina products are renowned for their durabil-ity. Some have made it to 40 years and are still going strong, growing old with the firm that made them. “The average life, at least according to Mexican government standards, is up to 10 years,” says Pliego, “but we’ve seen Dina trucks that are over 40 that are still in service. Mexico has the world’s second largest fleet of heavy ve-hicles; there are approximately 120,000 Dina vehicles on the country’s roads.”
A Dina engine can put in 1.5 million kilome-ters without being remanufactured; a chassis can last 20 years, depending upon its use, and a
even dUring the time it was aBsent from the
marketplace and in 2008 and 2009, when the gloBal
recession was at its peak, it was one of the few
companies to post growth, increasing its share of
the domestic market from 1 to 2.5%. today, dina Boasts
a 5% share of the mexican market.
Dina truck can transport up to 40 tons. “We’ve seen Torton trucks being loaded with up to 50 tons of fresh produce at the market and they continue to bear up. That’s the advantage of a chassis built to withstand speed bumps, pot-holes and any other obstacles that come its way.”
A willingness to meet the customer’s needs or petitions is what sets the company apart. “The customer calls the shots. If he wants three windows instead of four, we make it happen and the same goes for modifications to the ex-terior or interior design. We’re flexible,” says Pliego.
Also, the components Dina uses are univer-sal and can be easily purchased over the coun-ter, making repairs a lot less troublesome.
After sales support is another value added factor. Dina offers training for its customers’ mechanics to ensure warranty conditions are met and its units are properly serviced.
From passenger vehicles for public, corpo-rate and school transportation to freightlin-ers, Dina is constantly innovating. The com-pany’s “Sustainable Transport” line offers fuel economy and reduced emissions. “We are the first brand to offer vehicles that run on natural gas, which produce fewer emissions and are as much as 30% cheaper than their diesel equiva-lents,” says Pliego.
Dina is also working on hybrid buses and “zero emission” hydrogen powered electric vehicles. “The only thing that is emitted by the exhausts of these vehicles is water vapor and they’re not like the electric ones that you have to plug in to charge; they use hydrogen to gen-erate electricity.”
“In the future,” says Pliego, “Dina will be fo-cusing on new markets and sustainable innova-tion in a bid to continue supplying the interna-tional market with quality vehicles.” n
www.dina.com.mx
28 Negocios Photo courtesy of safran
risingTo mAximumHeigHTThe aerospace industry in Mexico seems to have reached supersonic speed. In less than a decade it evolved from manufacturing simple parts and assemblies to bigger items such as aircraft tails and fuselages. Today, Mexican aerospace industry is moving towards more advanced engineering and design activities.
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cOver feaTure mexican aerospace indUstry
Mexico has become a major innovation and manufac-turing center in the aero-space industry. In the last decade, the world’s leading
aerospace companies have found in Mexico the ideal destination for the development of their manufacturing strategies, given available capa-bilities and talent.
Many facts have favored the development of the aerospace industry in Mexico. Aerospace companies emphasize the availability of hu-man capital and competitive costs as the main strengths of Mexico’s aerospace industry.
The global industry’s opinions match vari-ous studies that have underlined Mexico’s comparative advantage in terms of costs. Ac-cording to KPMG, our country is ranked first in terms of operation costs compared to the industry’s leading countries. This advantage results largely from the country being part of the dollar zone, its free trade agreements and macroeconomic stability, among other factors.
In addition, there are 745,000 engineer-ing and technology students in Mexico, that is, 30% of the country’s total university popu-lation. Moreover, according to the National Association of Universities and Higher Edu-cation Institutes (ANUIES, for its acronym in Spanish), close to 114,000 engineering and technology students graduate each year and there are more than 900 postgraduate en-gineering and technology programs in high-level Mexican universities.
Also, the experience and success of the au-tomotive and electric-electronic sectors in Mex-ico, have served as a platform for the aerospace industry’s development, and have begun the creation of a solid provision/supplying chain.
Today, Mexico is the country with the larg-est investment in aerospace manufacturing and holds the sixth place in aerospace research and development investment.
During the last five years, Mexico’s aero-space-related exports have more than tripled and the number of companies established in the country keeps growing. Mexico is the coun-try with the highest investment attraction of aerospace manufacturing for the 1990-2009 period.
According to the Mexican Aerospace In-dustry Association, the country is ranked 12 in the global tables of aerospace equipment
exporters. In 2010, the aerospace sector’s ex-ports reached 3.27 billion usd. In 2011, Mexican aerospace exports are expected to surpass 3.5 billion usd.
Most of the Mexican aerospace sector ex-ports are directed to the US market (81%); fol-lowed by France and Germany, each with 2.8%. Canada and the UK come in third place with a participation rate of 2.6% each. Currently, Mexico is the ninth largest provider to the US aerospace market and the sixth supplier to its European counterpart. Exports are accelerat-ing quickly as manufacturers move into big-ticket items like tails and fuselages.
grOwTH & evOluTiOnMexico’s aerospace sector is sustained by five main axes: Manufacturing; Engineering; De-sign; Education (training, coaching and educa-tion) and Maintenance, Repair and Overhaul (MRO). Currently, over 70% of aerospace companies in Mexico focus, partially or totally, on component manufacturing. For their part MRO companies account for close to 23% of to-tal companies and their main capacities focus on providing maintenance for turbines and en-gines, auxiliary power units, fuselages, electric-electronic systems and landing systems, among others. Finally, services and engineering com-panies account for close to 13% of the industry.
In terms of components developed in Mexi-co, around 23% of companies have engine man-
today, mexico is the coUntry
with the largest investment
in aerospace manUfactUring
and holds the sixth place
in aerospace research and
development investment.
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30 Negocios Photo courtesy of safran / inFogRaPhic oldemar
ufacturing and maintenance capabilities. The industry also has capacities in the manufacture of fuselages and, in particular, their parts (15%). In addition, 7% of companies manufacture elec-trical systems and another 4% manufacture and maintain undercarriages.
In an initial stage, Mexico manufactured simple parts, autoparts and assemblies. In just a few years, the country entered into a second stage, which includes manufacturing of turbines, fuselage, harnesses and landing gears, among other products. Today, Mexico envisions entering a third stage in which complete airplanes will be designed and as-sembled, consolidating the country as a first class innovation center.
That evolution process is supported by sev-eral favorable conditions. For example, Mexi-co is one of the few countries in the world that relies on a bilateral agreement of mutual rec-ognition of certifying systems: Aeronautical-BASA (Bilateral Aviation Safety Agreement) together with the FAA (Federal Aviation Ad-ministration) of the US. Therefore, it is rel-evant that Mexico has the procedures needed to implement the BASA in design and manu-facturing processes (IPA).
regiOnal develOPmenTAlthough aerospace companies are estab-lished in almost all of Mexican states, some regions register faster growth rates and have become attractive poles for aerospace develop-ment. That is the case of Baja California, Jalisco and Querétaro.
Baja California’s aerospace industry is inte-grated mainly by foreign companies. Neverthe-less, a growing number of national companies
take part not only in manufacturing but also in complex tasks such as design, R&D and innova-tion projects.
Rockwell Collins was the first aerospace company to establish in the state in 1966. Since then, other large multinationals began opening facilities in the state, such as Zodiac, GKN, Chro-malloy, Honeywell and Gulfstream, among oth-ers.
Currently 52 out of the 232 aerospace com-panies established in Mexico, are located in Baja California employing more than 13,000 people –that is more than 40% of the industry’s workforce in the country. Furthermore, 65% of the aerospace companies established in Baja California are certified in AS9100 and NAD-CAP, a key element that guarantees the quality of the state production.
Some 40 years ago, Jalisco had already developed high-tech manufacturing capabili-ties in the electronics and automotive sectors, so the upgrade to aerospace production was a natural progression. As a result, the state is planning to increase the number of companies that provide parts and engineering services over the next 10 years.
Companies in the region are driving this transition by obtaining certification in aero-space quality standards, such as AS9100 for manufacturing, supply chain management and logistics. In addition to this, embedded-design companies that service global original equip-ment manufacturers (OEM) are performing research and development (R&D) activities.
Because of its broad base of young engineers, Jalisco is the ideal place to develop aerospace design and engineering activities. In fact, in Guadalajara, the state-capital, existing projects
are in place for producing engine components, wire harnesses, cables, landing-system compo-nents and heat exchangers, and for providing plastic injection, precision machining, fuselage insulation, and maintenance, repair and over-haul, among others.
Some of the sophisticated engineering proj-ects that are currently handled in Guadalaja-ra’s metropolitan area include engineering in-strumentation for flow diagnostics, computer vision, mathematical pattern recognition with metrology facilities, rapid prototyping and vir-tual instrumentation.
In Querétaro, Montreal-based Bombardier, the first major company to arrive in that state in 2006, opened shop hoping that a big-name company’s presence in Mexico would attract others in the supply chain. Things went ac-cording to plan, and now Bombardier –and other major aerospace companies established in Querétaro– contracts with a network of re-gional suppliers.
What started as a challenging idea, is nowa-days recognized as the strongest Mexican aero-space cluster. Following successful internation-al models such as Toulouse, France, Wichita and Seattle in the US and Montreal, Canada, Querétaro has consolidated itself as a strong aerospace cluster.
Querétaro Aerospace Valley is formed by more than 50 local and foreign companies em-ploying 4,800 workers.
The Querétaro Aerospace Park is the pre-mier location in Mexico exclusively for aero-space suppliers. Located in Querétaro’s inter-national airport, it offers a combination of infra-structure, competitive lease rates, and the first Aeronautic University in the area. n
some 40 years ago, Jalisco
had already developed
high-tech manUfactUring
capaBilities in the electronics
and aUtomotive sectors, so
the Upgrade to aerospace
prodUction was a natUral
progression.
©Je
an-f
ranço
is d
amois
/ c
reat
ive c
ente
r /
sa
fr
an
cOver feaTure mexican aerospace indUstry
CruiseAltitude
Source: ProMéxico / Mexican Federation of Aerospace Industry.
Mexico’s PartnersMajor markets for Mexican aerospace exports
Participation of Mexican exports
70% of the aerospace compa-
nies in Mexico are focused oncomponent manufacturing.
23%offer Maintenance,
Repair and Overhaul(MRO) services.
13%are services
and engineeringcompanies.
MexicanAerospaceExports Mexico is ranked 12among the world’smajor aerospaceexporters.
Exports by year(billions of USD)
2007
120
2008
193
2006
67
2010
232
2005
61
Aerospacecompaniesestablished in Mexico
MexicanManufactureOf the aerospacemanufacturing companiesoperating in Mexico:
2010
3.263.13
20072.73
4%manufactureand maintainundercarriages
23%manufactureand maintainengines.
15%manufacturefuselages andfuselage parts.
7%manufactureelectricalsystems.
2008
2.042006
1.682005
1.302004
1.342003
1.262002
81%
US
2.8%
France
2.8%
Germany
2.6%
Canada
2.6%
UK
32 Negocios32 Negocios Photos courtesy of ge
generaL eLectric puts mexico in the WorLd’s skiesthe engines that power some of the world’s most prestigioUs aircraft families are developed at general electric’s advanced engineering center in qUerétaro
mexicO’S ParTner geiq
General Electric’s confidence in Mexico, more specifically in the talent of its engineers, has sent the country soaring sky high. Literally. The turbine en-
gines that several families of international com-mercial carriers are fitted with are designed at the General Electric Advanced Engineering Center (GEIQ) in the state of Querétaro, in ad-dition to software that can illuminate entire buildings and devices to generate electricity and fossil fuel energy.
The Advanced Turbomachinery Engineer-ing Center (CIAT, for its acronym in Spanish) that preceded geiq was opened in 1999, also in the state of Querétaro. General Electric invest-ed 24 million usd into the expansion of CIAT, which began operating under its new name in mid-February 2011.
The research campus is one of a kind in Latin America –similar facilities are to be found only in Turkey, Russia, Poland and India. It employs 1,300 engineers, mostly graduates of Mexican universities with specializations in aerospace science and technology and who, to-gether, devote over one million hours a year to aeronautical research. General Electric plans to pour an additional 20 million usd into the center in 2015 to take on more engineers and step up its research activities.
It is no coincidence that General Electric chose the central Mexican state of Querétaro as the location for GEIQ. Mexico has been a key
territory in the company’s development, just as General Electric has played a key role in the economic development of certain regions of the country. Their shared history began in 1896, just 15 years after General Electric was found-ed in the US and only five years after Thomas Edison built the world’s first incandescent light bulb factory in New Jersey. General Electric opened its first factory in Mexico in 1929 and the business opportunities have continued ever since, according to GE General Manager for Mexico Gabriela Hernández Cardoso.
General Electric has 21 manufacturing plants in Mexico –more than it has in any other country bar its native US. It also has a presence in the country through the assembly plants of partners such as Mabe, IUSA, Prolec GE and AMI GE. Some 11,000 people are employed directly in Mexico by General Electric, which was listed as one of the best companies to work for by Expansión magazine.
Due to its skilled labor, strategic geo-graphic location and ties with other markets in Latin America and the world, Mexico holds enormous potential for the company’s development, as General Electric’s global ex-ecutives have duly acknowledged. GE Capi-tal, Energy Infrastructure, Technology Infra-structure and Home & Business Solutions are some of the business units currently operat-ing in Mexico.
These days, however, opportunities aren’t to be had solely on the manufacturing end but
also in research and development. And this is the task of GEIQ, an 8,000-square-meter facil-ity where mechanical parts and software are developed; where designs are validated, where diagnostic tests are conducted, where compo-nents are certified and where several interna-tional airlines come for support and assistance.
Every time you get on a plane, you have something to thank GEIQ for, not least the GEnx, a next generation turbofan jet engine that translates into fuel savings of 20% for com-mercial craft like the Boeing 787, 747-8 and 777. The center is currently working on mechanical parts for the world’s largest aircraft, the Airbus A380; solving problems related to the power-ful G90 engine and developing some of the 110 clean energy products featured in General Electric’s ecomagination portfolio.
The list of services and products manufac-tured in Mexico is vast, ranging from engine cabs, maritime engines, steam, wind, water and gas turbines to electricity generators, nuclear reactors, water-treatment equipment, valves, drilling systems for oil wells, electricity plants for oil refineries, systems for the opera-tion and maintenance of electric power plants, medical equipment, electrical appliances and lighting and light bulbs, to name just a few. All designed and made by the heads and hands of Mexico, a country General Electric would change for no other. n
www.ciat.com.mx
this research campUs is the only
one of its kind in latin america
–similar facilities are to Be foUnd
only in tUrkey, rUssia, poland and
india. it employs 1,300 engineers,
most of whom are gradUates of
mexican Universities.
34 Negocios Photo courtesy of safran
safran, flying on mexican fuelIn terms of employees, Mexico rates third worldwide in the operation of this French conglomerate, whose demand for specialized labor keeps it firmly grounded in the country.
by karla gardUño
When Safran came to Mexico 20 years ago, it was already a formi-dable bird of prey, but it has since stretched
out its wings and today is a world leader in the manufacture of engines for commercial jets, landing gear and even biometrics.
Safran arrived in Mexico in 1991. A few years after, the French conglomerate ac-quired Labinal de Chihuahua, the subsidiary of the French firm Labinal that manufactures aircraft wiring harnesses in Mexico for the US market.
Safran now has eight manufacturing fa-cilities in Mexico –in Chihuahua, Querétaro, Tamaulipas, Estado de México and Mexico City– that employ over 3,000 people and that are valued at around 350 million usd.
Stéphane Lauret is president of Safran Mexico. From his Mexico City office he over-sees the company’s Mexican operations, mak-ing sure every cog in this perfectly oiled ma-chine is working properly – not an easy task if you consider that Mexico rates third in terms of the number of people Safran employs worldwide.
“The group employs 55,000 people and with the acquisition of L-1 [in July 2011], this
figure increased. France is first, with 35,000 employees; the US comes in second place due to external growth and takeovers; and Mexico comes in third in terms of employees, which speaks of the country’s importance to the company,” says Lauret.
Like other multinationals, the main rea-son Safran chose Mexico to set up shop was its strategic geographic location. That said, Lauret cites quality of labor and the potential for specialization as some of its reasons for staying put and embarking on new projects.
Before year-end 2011, Safran plans to ex-pand its plant in Querétaro and create some 350 highly specialized jobs. According to com-pany projections, the new facility will allow the company to grow 15% in Mexico.
“After establishing ourselves as a supplier of the US market, over the last five years we have opened or expanded seven facilities, mainly in the high-level part of the business ― engines, landing gear and their maintenance. We are also registering growth in the security side of the business, which basically means the group is satisfied with the country. Obvi-ously, it’s not all perfect, but results are good, which is why the group is expanding,” says Lauret, who has felt at home in Mexico since he arrived two and a half years ago.
mexicO’S ParTner safran
all STakeS On SPecializaTiOn
Quality is what underscores Safran’s inter-national reputation and, as such, it its most valuable asset. The conglomerate dominates all three market branches –aerospace propul-sion and equipment, security and defense– it specializes in. Safran is world leader in the manufacture of helicopter engines, and wheels, engines and carbon brakes for commercial jets. In the area of defense, it has taken the lead in helicopter flight controls and has earned itself a name in the security business, producing biometric identification documents, such as the voting credentials used in Mexico, as well as biometric access controls and terminals, au-tomated fingerprint identification systems and systems to detect explosives.
With a track record like this, employee training is vital, as is greater specialization, particularly in a country like Mexico where the aeronautic industry got off the ground five years ago.
This is why Safran, together with the Mexi-can government, the French Embassy in Mexico and the state government of Querétaro, is in the process of establishing an aeronautics university that is scheduled to open its classroom doors in a few months’ time and expects to receive around 700 students in the next three years.
“We have invested 15 million usd in this campus, which is a project undertaken joint-ly by four entities: Safran, the governments of France and Mexico, and the state govern-ment of Querétaro. We want to do something similar in Chihuahua,” says Lauret.
Over 90% of Safran’s employees in Mex-ico are Mexican. “Here we have a competi-tive workforce,” he says, “but more impor-tantly, a motivated one. Proximity to the US and the dollar zone are important, but if you come here and realize you can’t work well, that the labor standards aren’t optimal, you close the factory. It’s not a question of costs; sure costs matter, but if the quality is lack-ing, you shut down the project. The cost comes later, at the end.”
Twenty years ago, managerial positions at Labinal de Chihuahua were occupied by French executives. Today they are all held by Mexicans. Better yet, according to Lauret, Labinal of Chihuahua’s former director of operations is today the number two execu-tive at Labinal worldwide and is in line to be president, some day.
cOmPeTiTive all arOund
Safran is no sleeping partner in Mexico. Its efforts to make its own production chains
more efficient have benefited the country’s aerospace industry as a whole.
In addition to the aerospace campus in Querétaro, the French conglomerate is working closely with the Department of the Economy and ProMéxico in the devel-opment of a supply chain to strengthen the domestic base.
“We want to buy more in Mexico,” says Lauret. “The problem is the aerospace indus-try isn’t an easy one; it’s not a piece of cake. Things are obviously a bit slow at the mo-ment, but we’re working on this with a view to expanding. It’s complicated for a company to make an incursion into aerospace over-night. The example is often given of Mexi-can companies operating in the automotive sector that could make the transition to the aerospace industry, but it’s not as simple as that. In the automotive sector, you can pro-duce 100 parts with a high error margin, but in the aerospace industry you’re only going to produce two, so there’s no room for error. This business requires hefty investment.”
To date, the most common solution has been to bring in companies from the US, Canada, Europe and Japan to set up joint ventures in Mexico. But Safran has flown against prevailing winds and opted to sup-
safran now has eight manUfac-
tUring facilities in mexico –in
chihUahUa, qUerétaro, tamaUli-
pas, estado de méxico and mexico
city– that employ over 3,000 peo-
ple and that are valUed in the
region of 350 million Usd.
© f
réd
éric
lert
/ s
af
ra
n
36 Negocios Photo courtesy of safran
port the creation of small and medium en-terprises to take on the challenges Mexico’s fledgling aerospace industry poses. Approxi-mately 22 such enterprises have already been set up or are in the process of being incorpo-rated.
Another accomplishment Safran can take credit for is getting the various states it oper-ates in to work together with a view to boost-ing overall competitiveness.
“We are present in five states and haven’t experienced problems with any, but the idea
is to get everyone working together, because Querétaro has things you can’t find in Baja California and vice versa. It’s always going to be that way. The idea is to work together more often,” says Lauret.
Taking uP THe green gaunTleT
Safran has followed in the footsteps of many of the world’s large industrial conglomerates and taken up the gauntlet of sustainable devel-opment. Along with GE, Safran conceived the CFM56-5B4/3 biofuel-powered jet engine. In Mexico, Interjet is using the CFM’s know-how in terms of biofuel powered flights
On April 1st 2011, Interjet made its first test flight. One of the airline’s engines was powered with biofuel made from jatropha, algae and halophytes.
“We worked with them closely from the be-ginning, because it is a project that is of great in-terest to us. We believe Mexico has the potential to be a bio jet fuel country of the future, but this goes way beyond Safran’s scope,” says Lauret.
These and other projects like them have enabled Mexico to contribute to Safran’s bot-tom line, with the group reporting growth of 8.2% and revenues of 5.62 billion euros in the first half of 2011. n
www.safran-group.com
labinal
Location: Chihuahua.Employees: 2,230.Founded: 1998.Activities: two electronic systems assembly factories and a design center .
meSSier
ServiceS america
Location: Querétaro.Employees: 210.Founded: 2007.Activities: landing gear and hydromechanical systems MRO for Airbus, Bombardier and Boeing.
Snecma america
engine ServiceS
Location: Querétaro.Employees: 120.Founded: 2008.Activities: OEM for CFM56 engines.
Snecma
Location: Querétaro.Employees: 90.Founded: 2009.Activities: production of booster spools, turbine blades and vanes for the CFM56.
meSSier-dOwTy
Location: Querétaro.Employees: 120.Founded: 2009.Activities: Phase 1, manufacture of steel parts; Phase 2, subassembly.
glObe mOTOrS
Location: Reynosa.Employees: 150.Founded: 1989.Activities: manufacturing operations for automotive and industrial production, design and development of test equipment, tool rooms, metrology and lab analysis.
mOrPHO
idenTificaTiOn
Location: Mexico City. Employees: 50.Founded: 1994.Activities: identity management systems, multibiometric identification systems, biometric access control and terminals, airport security and speed control.
mOrPHO e-dOcumenTS
Location: Estado de México and Mexico City.Employees: 30.Founded: 2008.Activities: personalization of smart cards.
like other mUltinationals,
the main reason safran
chose mexico to set Up shop
was its strategic geographic
location. that said, laUret
cites qUality of laBor and
the potential for specializa-
tion as some of its reasons
for staying pUt and emBark-
ing on new proJects.
Safran in mexicO
© t
hie
rry m
amb
ert
i / s
af
ra
n
mexicO’S ParTner aernnova
Aernnova makes a successful Landing in QuerétaroJust two years after arriving to Mexico, this Spanish firm has a third plant, for the production of aircraft and helicopter parts, on the drawing board.
Aernnova Aerospace of Spain will build a plant for the pro-duction of carbon fiber aircraft structures in the Mexican state of Querétaro. Construction
work will begin in the last quarter of 2011 and the facility is expected to be operating by the sec-ond half of 2012, according to company sources.
This is the third plant to be built by the global aerostructures company since it came to Mexico just two years ago. Airbus, Boeing, Bombardier, Eads, Embraer, Eurocopter and Sikorsky are just some of the names that fea-ture in the client portfolio of Aernnova, which manufactures metallic and composite parts, in addition to providing engineering, repair and product support services.
The state government of Querétaro and the Department of the Economy’s Investment Pro-motion Unit smoothed the way for Aernnova’s arrival in Mexico, where its first plant was of-ficially opened in February 2009 by President Felipe Calderón Hinojosa at the Querétaro In-dustrial Park. At the time, Aernnova projected that it would channel 100 million usd into its Mexican operations between then and 2014, a figure that has since risen to 140 million usd.
Prior to 1999, the company’s production ac-tivities and services were concentrated in Spain,
Brazil and the US. It wasn’t until the mid 1990s that Querétaro appeared on its radar. At the opening ceremony of its first plant in Mexico, Aernnova’s CEO José Luis Osoro said that the central Mexican state of Querétaro was cho-sen for its relative proximity and ease of access to customers in the US and South America. Querétaro also offers skilled labor, scientific research centers, tax incentives and security, which, together, guarantee conditions of quality, price and competitiveness that are conducive to the development of the industry.
In the case of skilled labor, it is supplied by specialized institutions like the Universidad Na-cional Aeronáutica (UNAQ), founded in Queré-taro in 2006, while a team of Mexican engineers were trained at the company’s plants in Spain.
Aernnova’s plants in Querétaro have two missions: one is the manufacture and integral management of large aircraft structures like fuselage sections, wings and stabilizers and the other is the manufacture of metallic, composite and mechanized parts. All these products are fully finished by the time they reach the cus-tomer’s final assembly line.
The new plant, which will begin operating in late 2012 if all goes accordingly, will specialize in the manufacture of parts and the mounting of carbon fiber structures for aircraft and heli-
copters, such as landing gear hatches, winglets, flaps, ailerons, spoilers, elevators and rudders.
According to Aernnova Aerospace spokes-persons, this latest addition to its production facilities in Querétaro will cost the company 50 million usd but will enable it to offer every-thing from engineering and supplier manage-ment services to the manufacture of finished products, right up to final delivery to the cus-tomer.
Mexico stands to benefit from the transfer-al of technology, both in terms of engineering know-how and infrastructure for the manu-facture of the parts and structures Aernnova specializes in.
The company’s short-term goal is to cre-ate a market in the region and supply parts to other manufacturers that set up shop in Mexico. On a grander scale, it aims to build up a network of producers and suppliers of aero-nautical components to meet sub-contracting demand in different parts of the world.
Once the new plant comes on line in 2012, Aernnova Aerospace will be employing some 1,300 skilled workers and will have an estimat-ed annual production capacity of two million hours. n
www.aernnova.com
mind over matter
38 Negocios Photos courtesy of honeywell
Honeywell has its head in the clouds and its feet in Mexico. Founded in 1904 by a young engineer by the name of Mark Honeywell, the company
now has 122,000 employees worldwide. That includes 19,000-plus engineers and scientists whose task is to invent, design and manufacture products that respond to global trends in safety and energy efficiency.
Part of that design effort and intellectual capacity is located in North Mexico, in facilities that develop aerospace projects for commercial airlines and the military.
The Mexicali Research & Technology Center in Baja California is one of a kind. This 35-million-dollar system integration lab has
Founded in 1904, Honeywell has a 30-year presence in Mexico, where it develops aerospace systems. Its goal is to apply Mexican talent to compete not only in manufacturing but also in project design and management.
by gUstavo aréchiga
mexicO’S ParTner honeywell
been in operation since 2007 and employs 400 people engaged in the design engineering and testing of components for aircraft systems.
Also on the border, Honeywell Chihuahua Manufacturing Operations is a manufacturing center that produces mechanical engine components. These facilities in Chihuahua have been recognized as a Center of Excellence in advanced precision mechanics for commercial and military aircraft engines.
Honeywell is also present in Monterrey, Nuevo León, where it has a center that serves suppliers and supports the manufacture of commercial vehicles and jets.
In 1986, Honeywell significantly enhanced its position in the aerospace industry with the acquisition of Sperry Aerospace, which
contributed flight controls, space vehicles and the first FAA-certified wind shear warning system, making Honeywell the world’s leading integrator of avionics systems.
It was around that time that the company realized Mexico had the potential to be competitive in the aerospace industry and began hiring engineering graduates and professionals with six or seven years of engineering experience.
According to Alfredo Cárdenas Roldán, director of the Mexicali Research & Technology Center, Honeywell has invested in Mexico for strategic reasons because its proximity to the US and South America facilitates product transportation and because it has a steady supply of skilled labor, with 90,000 engineers
graduating each year from reputable universities like the Tec de Monterrey, the National Polytechnic Institute and research centers funded by the National Science and Technology Council (CONACYT).
“You find cosmopolitan people educated at good schools and who like aerospace engineering. The company realized there’s a lot of talent in Mexico in the field of engineering. That’s why the design groups have grown so much. We’re asserting ourselves in the design of the products Mexico makes. We’re starting with simple products but the long term goal is for all manufactured goods in Mexico to also be designed here; to do away with all the coming and going whereby products are designed and approved in the US and then manufactured
honeywell’s research & technology center in mexicali, BaJa california is one of a kind. this 35-
million-dollar system integration laB has Been in operation since 2007 and employs 400 people,
engaged in the design engineering and testing of components for aircraft systems.
40 Negocios Photos courtesy of honeywell
in Mexico. The idea is to position Mexico as a leader in the technology that develops the products designed here,” says Cárdenas.
On the commercial end, Honeywell has also found an ally in Mexico. The company has teams providing assistance for corporate jet and commercial airline markets, while Mexico leads in customer services for Latin America.
Honeywell has employees in Baja California and Monterrey who handle corporate projects and programs, take care of the finances and engineering design, draw up contracts, deliver products and provide after-sales support.
Cárdenas believes “Mexico has an enormous advantage in its manufacturing costs which are extremely competitive, sometimes lower even than in Asian markets. Mexico also has great potential on the operating side of things. But it’s the engineering aspect that’s really taking off. Thanks to Honeywell, other companies in Mexicali are bringing in engineering teams for their own projects.”
On the supply front, Honeywell has a chain of direct and indirect suppliers who have buoyed its success in Mexico for many years. The challenge here is that the aerospace industry demands certified products, which implies costs too expensive for many small-scale manufacturers to absorb. Honeywell
is trying to surmount these obstacles so the products manufactured at its facilities can also be designed by Mexican minds.
But it’s not all business. Since 2008, Honeywell has been organizing university programs to support and promote science and math in Monterrey, Chihuahua and Mexicali. For example, the Rocket Club is an educational physics project where kids can learn about the concepts of gravity and mass by building their own rockets.
In the mid-term, the company plans to expand its global Honeywell Turbo Technologies program and set up a world class testing center in Mexicali. The MultiAir gasoline engine Fiat automobiles are equipped with is an example of that technology, which offers 10% more power and a 15% improvement in fuel economy compared to conventional engines, resulting in reduced emissions of CO
2
and polluting particles.Mexico’s aerospace sector has experienced
exponential growth over the last decade, to the point where it is now the sixth largest worldwide. Exports have also grown in the last five years, touching 3.13 billion usd in 2008. Clearly the sector is in good health and has a lot more than hot air propelling it. n
www.honeywell.com
on the commercial end, honeywell has also foUnd an ally in mexico. the company
has teams providing assistance for corporate Jet and commercial airline markets,
while mexico leads in cUstomer services for latin america.
green aPPrOacH
This summer, the Mexican airline Interjet made its first round-trip pas-senger flight using Honeywell Green Jet Fuel, a biofuel produced from Jatropha curcas. Flight 2605 departed from Mexico City and landed safely in Tuxtla Gutiérrez, Chiapas.
The fuel used to power the Airbus A320-214 was produced using a pro-cess technology developed by Honey-well UOP, which turns the natural oils and fats in the Jatropha into a biofuel that is then blended with petroleum-based jet fuel.
The use of this biofuel can reduce a flight’s carbon footprint by as much as 80% compared to conventional jet fuel.
a gianT Of THe air
wiTH a mexican flair
System integration testing for the Airbus A350 and the design of the HTF 7500 engine for Embraer are the main aerospace engineering projects Honeywell is focused on in Mexico. The Airbus A350 competes directly with the Boeing 787 and is indubitably Honeywell’s priority program here. The craft’s rear engine, cockpit system, engine system, control electronics, fans and valves are being designed in Mexi-cali, Baja California, while state-of-the-art aerodynamics are being employed to reduce wind resistance and improve speed and fuel economy.
The lifestyleT h e C o m p l et e G u i d e of t h e M ex i c a n Way of L i fe . p. 50
maría del Pilar Luna
Un derwater Time Travel
p. 42
Diana Kennedy: A Brit with
a Mexican Palate
Ph
oto
ar
ch
ive
Photo courtesy of inah42 Negocios i The Lifestyle
Mexico’s seas, rivers, lakes and cenotes are a treasure trove of fragments from the puzzle that is our his-tory. Since 1980, a multi-
disciplinary team of scientists has dedicated its efforts to finding, preserving and piecing togeth-er these fragments to determine which period of life on Earth their discoveries belong to and where they fit into world history.
The team works under the guidance and coordination of a woman whose accomplish-ments could fill the pages of an entire book: María del Pilar Luna Erreguerena, deputy di-rector of marine archaeology at the National History and Anthropology Institute (INAH).
Born in Tampico, Tamaulipas, María del Pilar learned to swim almost before she could walk. And she kept on swimming against the tide, insisting on attending university despite the mores of the day. As an archaeology stu-dent in the late 1960s and early 1970s, she got to wondering what cultural treasures lay at the bottom of the ocean and how it would change
our knowledge of history if these could be stud-ied. Her response was to become a certified deep sea diver. In 1970, her tenacity earned her an apprenticeship with America’s George F. Bass, considered the father of underwater archaeology. She went on to single handedly open the floodgates for the scientific study of the cultural heritage that lies beneath Mexico’s waters, persuading INAH to set up a special un-derwater archaeology department and cham-pioning the country’s participation in interna-tional organizations like the Advisory Council on Underwater Archaeology, the International Committee on Underwater Cultural Heritage and the Scientific and Technical Advisory Body to the UNESCO Convention on the Protection of Underwater Cultural Heritage, a 12-member board on which she has sat since it was created in November 2009.
Rejecting the social paradigms of her age, María del Pilar struck out alone, perhaps in the knowledge she didn’t need a partner to form a family –one that now extends the length and breadth of Mexico and beyond its borders.
maría del Pilar Lunaunderwater Time Travel
maría del pilar lUna erregUerena has BroUght mexico recognition in the field of marine archaeology
if yoU think aBoUt it, maría
del pilar lUna is really a time
traveler who Uses water as
her mediUm.
inTerview maría del pilar lUna
María del Pilar enjoys close ties with archae-ologists in the US and Canada, with whom she has been sharing experiences since the 1970s. More recently, she has garnered the support and respect of researchers in Spain. She has also been instrumental in training a new gen-eration of experts eager to enrich our knowl-edge of history with their watery discoveries; her “Maritime and Underwater Archaeology, Research and Management” course, sponsored by UNESCO in 2010, was attended by students from 14 countries throughout Latin America and the Caribbean. In addition to these activi-ties, she coordinates a multidisciplinary team of biologists, archaeologists, historians and geogra-phers, oftentimes recurring to archaeoastrono-mers, as well as museum curators and experts in universal art, restoration and conservation.
If you think about it, María del Pilar Luna is really a time traveler who uses water as her medium.
She has “conversed” with characters from the distant past, one of whom she saw weave a fishing net with a needle fashioned out of the sting of a stingray. She happened upon this ar-tifact in 1980 in the waters of Grand Cayman, a British overseas territory in the Caribbean. “This small object means a lot to me because it represents the connection between the archae-ologist of the present and the person from the past that made and used it,” she says.
María del Pilar and her team have been transported back to the 16th century, when a galleon from the Philippine city of Manila was shipwrecked off the coast of Baja California. Some 1,500 fragments of china from the Ming Dynasty (1563-1620) and coins that were legal tender in the days of Spanish monarch Felipe II (1556-1598) revealed the extent of intercontinen-tal trade all those centuries ago, while sheets of lead that were used to line the ship’s hull were also retrieved. She and her researchers have literally smelled the copal left by the ancient set-tlers of America in the Sun and Moon lagoons in the crater of the Nevado de Toluca volcano in Estado de México 1,500 years ago and have relived the drama of countless shipwrecks from the 16th right up to the 21st century in Banco Chinchorro, a reef south of Cozumel in the state of Quintana Roo.
But it is science and the search for knowl-edge that spurs these discoveries, not mere trea-sure-hunting, insist the members of the INAH Underwater Archaeology Department. They
also insist that archaeologists be assisted in their tasks by experts in the social and exact sciences, since a great deal of evidence relating to the his-tory of maritime navigation has been lost due to the looting of wrecks or the removal of artifacts from their context, which makes it harder to interpret their meaning. “The treasure of a site isn’t the objects in themselves but the research that goes on around them. The objects are a means of connecting us with people who went before us; the ultimate goal is knowledge and education,” says María del Pilar.
From day one at the helm, María del Pilar Luna has demanded scientific rigor of her mul-tidisciplinary team, infected its members with her resolve and fostered in them a spirit of co-
she has “conversed” with
characters from the distant
past, one of whom she saw
weave a fishing net with a
needle fashioned oUt of
the sting of a stingray. she
happened Upon this artifact
in 1980 in the waters of grand
cayman, a British overseas
territory in the cariBBean.
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oto
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to
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44 Negocios i The Lifestyle Photos archive
Simancas; archives containing the protocols of Cadiz, Seville and the Basque country; the Naval Museum and the Royal Academy of History in Madrid; Mexico’s National Archive; the Notaries’ Archive; the Puebla City Hall Archives and the Historic Archives of Veracruz.
Luna, it seems, has one foot in the past and another in the present. Her drive to keep up to speed with each and every development in un-derwater research in Mexico has transcended borders. On January 7, 2011, the Society for His-torical Archaeology (SHA) of the US presented her with the J.C. Harrington Medal, making her the first woman in Latin America to receive this prestigious award for her lifetime contribution to the discipline. That is the second occasion on which the medal has gone to an expert in underwater archaeology –the first was in 1999 when it was awarded to Luna’s mentor, George F. Bass.
Yet fame has not dinted her strong sense of professionalism. Luna is as concerned as ever to ensure that science complies with international protocols, even when the salvage work spans several decades.
You could say María del Pilar was lucky to have been born in Mexico, a country with coast-line to spare. “It’s impossible to know exactly how many underwater archaeological sites we have. On the Yucatán Peninsula alone, there are thousands of cenotes and underwater cav-
erns, many of which contain vestiges of civiliza-tions dating from prehistoric, pre-Hispanic and colonial times. Mainly wrecks from the 16th through to the 20th centuries are found in the Pacific, the Gulf of Mexico and the Mexican Ca-ribbean, as well as isolated finds from accidents at sea,” says Luna. One of the projects undertak-en by the INAH department she heads consists of compiling inventories of archaeological finds at these sites and their locations.
Parallel to that, her team works at specific sites, on projects like the New Spain Fleet of 1630-31 and related manuscripts that shed light on the historical, economical, political and so-cial context of Spain and New Spain in the 17th century, in addition to the crew and cargo of this fleet that faced a series of trials and tribula-tions, finally losing several of its ships in 1631 to a storm in the Gulf of Mexico.
Other undertakings include an underwa-ter archaeological atlas for the documentation, study and protection of cenotes and underwa-ter caverns on the Yucatán Peninsula, the Ma-nila Galleon Project in Baja California, the Ne-vado de Toluca Project and two inventories: one in the Gulf of Mexico and another in the Banco Chinchorro Biosphere Reserve in Quintana Roo, which has been nominated as a UNESCO World Heritage Site.
And when she isn’t donning a tank and bal-last, Luna investigates reports of site violations, procures legal protection, oversees the training of new recruits, conservation and educational aspects and promotes national and internation-al cooperation agreements.
This is a woman who has dedicated her life to furthering our knowledge of the past by dredging the depths of the ocean and asking herself questions that lead to the discovery of cultural treasures and invaluable historic infor-mation.
So after a hard day’s scavenging, what does María del Pilar Luna Erreguerena do to un-wind? “I go diving,” is her instant reply. n
yet fame has not dinted
her strong sense of
professionalism. lUna is as
concerned as ever to ensUre
that science complies with
international protocols, even
when the salvage work spans
several decades.
operation with other nations. It is thanks to her efforts that Mexico has a reputation as a country that protects its underwater heritage in an age when treasure hunters are plying governments for permits to plunder these archaeological sites for monetary gain.
There is a before, during and after to field-work both on the surface and under the water. That implies documentary research, without which we would be left with silent artifacts or fragments thereof unless the proper pre-cautions are taken. “When the remains of a shipwreck are located, we only have half the information” and preserving it is a meticulous task that falls to restoration and conservation experts because artifacts found underwater can suffer damage or disintegrate completely the minute they come into contact with the air.
The other half of the story, “the voices that recount the past of these artifacts,” are found in the archives and the hypotheses of experts. These voices speak of daily life aboard the ships, clashes with pirates, tragedies at sea and their survivors, the red tape and regulations of sea voyages, the adventures of Men of Old in newly charted waters, sea faring routes, navigation and superstition. According to INAH, written records of all these aspects represent an invaluable ar-chaeological resource, scattered among archives in Spain, Cuba and Mexico: the General Archive of the Indies in Seville; the General Archive of
inTerview maría del pilar lUna
“the treasUre of a site isn’t the
oBJects in themselves BUt the
research that goes on aroUnd
them. the oBJects are a means
of connecting Us with people
who went Before Us; the
Ultimate goal is knowledge
and edUcation.”
—maría del pilar
lUna erregUerena
46 Negocios i The Lifestyle
a lunar landscape on the great divide The Pinacate volcanic field is a well-kept secret of the desert that separates Mexico and the US. Black volcanic dust and huge craters create a magical lunar landscape that is well worth the trek.by gUstavo aréchiga
Photos archive
deSTinaTiOn pinacate
Ph
oto
ch
ris
to
ph
er
ho
ld
en
Ph
oto
ch
ris
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Between 1965 and 1970, at the height of the space race, NASA sent a group of astronauts to Pinacate to train for future mis-sions to the moon. Covered in
sand with the texture of fine, black dust –once the molten lava of volcanoes that shaped this tourist attraction between Puerto Peñasco in the Sonoran Desert and Arizona over the course of millions of years– a more lunar-like landscape would surely have been hard to find.
The Pinacate Biosphere Reserve occupies the eastern portion of the Altar Desert, which is the largest stretch of continuous wilderness within the Sonoran Desert. It lies just below the border with the US, a stone’s throw from the beaches that line the Gulf of California, and is protected by Mexico’s Federal Government in cooperation with Sonoran state authorities.
Inhospitable as it may seem, the Pinacate reserve is in fact rich in desert flora and fauna, boasting over 500 plant species, 40 types of mammal and 237 bird species, as well as rep-tiles, amphibians and fish. Hard to fathom in a place so parched.
Such is its natural wealth that it forms part of UNESCO’s The Man and the Biosphere (MAB)
program to support scientific research in 564 biosphere reserves in 109 countries.
Popular among Mexican and foreign tour-ists alike are its enormous craters, which can be visited by land but that are best viewed from the vantage point of a light aircraft. The most famous and largest of these is the MacDougal crater, which plummets over 5,000 feet into the bowels of the earth, fragments of basalt protrud-ing from its sheer walls.
Sand dunes whose hues change subtly from deep black to light brown stretch as far as the eye can see, straddling the border with the US. The reserve extends for 7,146 square kilome-ters –equivalent to the total area of the Mexican states of Aguascalientes, Colima, Morelos and Tlaxcala.
This is the immense, phantasmagorical desertscape that was admired by explorers like Melchor Díaz in 1540, the Catholic priest Euse-bio Kino in 1698 and, later, in 1907, the scientists MacDougal, Hornaday and Sykes, after whom three of Pinacate’s craters are named.
The reserve is home to cultural and archae-ological remains dating back more than 20,000 years, when the Tohono O’odham, a desert people also known as the Papagos, followed the
inhospitaBle as it may seem,
the pinacate reserve is in
fact rich in desert flora and
faUna, Boasting over 500 plant
species, 40 types of mammal
and 237 Bird species.
48 Negocios i The Lifestyle
desert rains and drank from streams to survive. Their descendents still consider it a sacred zone, spattered with ceremonial sites that permit communication with the gods and the forces that govern the universe.
If you decide to visit Pinacate, you can expect a sun so intense it makes your skin itch. Rainfall is minimal all year round and temperatures rise and fall at the speed of a roadrunner. Rare spe-cies of cactus, undergrowth and plants sprout up here and there, drawing sustenance from some invisible source.
The black volcanic dust underfoot takes some getting used to and the going is tough, as if you were moon walking on earth.
For the safety of visitors, pets and firearms are strictly prohibited, as is hunting. A 4x4 or all terrain vehicle is recommended so you don’t get stuck in the sand, but make sure you get the ap-proval of the reserve rangers in advance.
Jeans and a long-sleeved shirt, sunglasses and cap will protect you from the sun and don’t forget to bring along a thick overcoat if you’re planning on camping out because it can get pretty cold in the desert at night. Under no circumstances should you stray off the marked paths and, as in any nature reserve, the golden rule is take nothing and leave nothing behind.
Perhaps the best description of what you can expect to see in this generous slice of Mexican desert is the one proffered by environmental writer Edward Abbey in 1968: “Why should anyone go out of his way to contemplate the Pinacate country, El Gran Desierto, this ultimate wasteland? One answer might be that very few people ever do go out there. But this is not an an-swer, only an evasion. Perhaps the explanation is that the appeal of the Pinacate country lies in its total lack of any obvious appeal. In its empti-ness. In its vast, desolate nothingness.” n
Photos archive
deSTinaTiOn pinacate
50 Negocios i The Lifestyle
You could safely say Diana Ken-nedy loves Mexican food more than most Mexicans do. So much so that when she goes back to the United Kingdom,
she misses her chicken consommé seasoned with chili sauce, the way it’s served in Mexico. Such is her passion for Mexican cuisine that on her farm in Zitácuaro, Michoacán, she grows crops endemic to different parts of the country, just as they are found in the wild. The last 54 years of her life have been devoted to research-ing, documenting and preserving Mexico’s vast gastronomic heritage for posterity.
It would also be safe to say Diana Kennedy is a natural-born traveler, explorer and scien-tist who heeds theory but who has more faith in practice. Her experiments, conducted with
Photo verónica muzzio
DiAnA KenneDYA BRIT WITH A MEXICAN PALATEdiana kennedy has given kitchens the length and Breadth of the coUntry the once-over in her mission to Bring the world a taste of real mexican food.
inTerview diana kennedy
the utmost patience, reveal the occult laws of nature that govern one of the most difficult to master arts: the alchemy of Mexican cooking.
Hers is an intriguing story of a destiny mapped out by free will. After falling in love with the journalist Paul Kennedy, who came to Mexico in 1957 as a correspondent for the New York Times, Diana Kennedy started ex-ploring Mexico, not as a bored housewife but as a woman driven by a restless palate.
When asked if she was ever daunted by the spiciness of Mexican food, as foreigners sometimes are, she replies “Never,” going on to explain that she was already deliciously familiar with the pungent cuisine of India, a former British colony that is now an indepen-dent nation. Having learned to make her own jellies and preserves from an early age, Diana
was eager to get her hands dirty. So she asked the family cook to show her how to make mar-inated pork and tamales. There was no going back. Her love affair with Mexican food took her all over the country, to small, out-of-the-way communities, in search of new and excit-ing flavors.
“I’ve been cooking since I was a girl be-cause I’ve always liked eating. Who doesn’t like eating?” is how she sums up her passion.
Diana’s first notes on the cuisine of Oaxaca –which came in handy when she wrote Oaxa-ca al gusto (2009) – date from 1965. The follow-ing year, she went back to New York with her husband, who passed away shortly afterwards.
This English lover of Mexican food could have easily remained in mourning; instead she decided to recoup a lost love and salvage the flavors lurking in the remotest corners of
the last 54 years of her
life have Been devoted to
researching, docUmenting
and preserving mexico’s vast
gastronomic heritage for
posterity.
52 Negocios i The Lifestyle
a country that wasn’t even her own. No one could have imagined the odyssey that was to come. In the late 1960s, Craig Claiborne, re-nowned chef and food editor of the New York Times, suggested she give cooking classes. This prompted Kennedy to explore Mexico to collect recipes for her first book, The Cui-sines of Mexico. Published in 1972, this was one of the first ever Mexican cookbooks in English.
At this point, it should be noted that there’s more to Mexican cuisine than mayo-drenched burritos and insipid tacos. Soft on the palate but sore on the stomach, the tacos and burritos served up by fast food chains in the US can hardly be classed as authentic. No. Real Mexican food is a universe of ingre-dients drawn from home grown and foreign sources, slow cooked dishes prepared with love and passion, seasoned with infinite combinations of chilies and spices. Not even Diana Kennedy is attuned to its every nu-ance, as she herself readily confessed to a tourist publication in 2009. “I’d need many lives and many books to write about the fla-vors of Mexico. Everywhere I go, there are local chilies with a different taste, unknown elsewhere […] No one, not even myself, de-spite having traveled the country extensively, is familiar with more than a tiny percentage of the flavors out there.”
The question is: Is the world ready for au-thentic Mexican food? The kind of food you find in Mexico’s restaurants, markets and homes, made the way it has been for centu-ries? Diana Kennedy assures us it is, provided the right ingredients are used and the recipes are carefully followed.
On her travels, mainly in southeast Mex-ico, equipped with only a folding camp bed, she has absorbed the spirit and ritual that transform simple ingredients into food for the soul. Sometimes she eats at small markets like the one in Chilapa, Guerrero, where she got her first taste of green pozole –the most delicious she can remember. Other times she forges ties of friendship with local families, many of which come to trust her so much they let her into their kitchens and share with her their culinary knowledge, handed down from generation to generation. There is always a new recipe to be learned, a new plant to be discovered, a new flavor skulking behind a bend in a country path, a forest or a mountain.
Many of these discoveries can be found in the nine books Kennedy has published to date. Oaxaca al Gusto, the last one, contains 326 reci-pes from Oaxaca, grouped into three mouth watering chapters according to their main in-gredient: cocoa, corn and chili.
Corn and chili are staples for this ambas-sador of Mexican cuisine, who grows them on her organic farm in Zitácuaro, Michoacán, where she has lived and worked since 1980. Her house is built out of mud and straw ado-be bricks made using a technique that dates back to pre-Hispanic times. Her kitchen is just as traditional, equipped with a jumble of utensils, appliances and ingredients from all over the country, and a wood fired oven –essential for her more autochthonous cre-ations. So ancient are some of the dishes in her repertoire that they are fast disappearing in certain regions like the Yucatán Peninsula. “When I visited that region for the first time
bOOkS by diana kennedy
•The Cuisines of Mexico•Recipes from the Regional Cooks of Mexico•The Tortilla Book•Mexican Regional Cooking •The Art of Mexican Cooking•My Mexico•The Essential Cuisines of Mexico (compilation from Kennedy’s first three books, plus 30 new recipes)•From My Kitchen, Techniques and Ingredients•Oaxaca al Gusto: An Infinite Gas-tronomy
Photo verónica muzzio
the qUestion is: is the world
ready for aUthentic mexican
food? the kind of food yoU
find in mexico’s restaUrants,
markets and homes, made the
way it has Been for centUries?
diana kennedy assUres Us it is,
provided the right ingredients
are Used and the recipes are
carefUlly followed
in 1958, I worked with some women and learned to make dishes that no one makes anymore. I’m always eager to learn new reci-pes and techniques but if we’re talking about indigenous or ethnic cooking, I prefer the original,” she says.
That doesn’t mean Kennedy is averse to marrying regional dishes with fine interna-tional wines, or even cooking with them. “I once made a mole with champagne and it was delicious,” she says.
It’s like talking to a Mexican Babushka. As she speaks, she concentrates on milling green cheese and tortilla dough on her metate –a flat grinding stone used since pre-Hispanic times. Except that Diana has had the foresight to document the recipes so jealously guarded and handed down by word of mouth for cen-turies. And in doing so, she has ensured their survival. This labor of love has earned her accolades like The Order of the Aztec Eagle (1981) –the highest decoration awarded to for-eigners by Mexico– the Amando Farga Font Award (1991), presented by Mexico’s gastro-nomic press, and the Gold Medal awarded by the Mexican Restaurant Association (2001). She has also been appointed an Academic Researcher by the Mexican Gastronomic So-ciety (1992) and a Member of the Order of the British Empire by Queen Elizabeth II for her work in strengthening cultural ties between Mexico and the United Kingdom.
Despite the awards and recognition, Diana Kennedy quietly continues her work, traveling the country in search of new flavors and tech-niques, learning and cooking to her heart’s content. So what’s her favorite dish? “I have a thousand!” she says. n
inTerview diana kennedy
“when i visited that region for
the first time in 1958, i worked
with some women and learned to
make dishes that no one makes
anymore. i’m always eager to
learn new recipes and techniqUes
BUt if we’re talking aBoUt
indigenoUs or ethnic cooking, i
prefer the original,” she says.
54 Negocios i The Lifestyle
Just a few blocks from Washington Square Park, almost on the edge of the Hudson River, is Empellón, a res-taurant that has taken the humble taco to new heights and where the
salsa is just the icing on the cake.“Empellón represents an evolution; we
don’t just do tacos and potatoes. It’s a com-fortable restaurant with less fuss and more food, but it’s also great for those special oc-casions without having to dress for the occa-sion,” says Alex Stupak, whose training as a pastry chef has made him especially watch-ful of presentation.
LITTLE MEXICO IN NEW YORK if yoU’re in new york and fancy a taste of mexico, drop into empellón. owned By acclaimed chef alex stUpak, this restaUrant ploUghs the depths of regional mexican cUisine.
by gUstavo aréchiga
In Spanish, “empellón” means “shove” and that’s just what this restaurant aims to do: push beyond the limits, provoke, incite. Ac-cording to Stupak, when constantly faced with the simple, but profound question “What do I want to cook?”, a chef should break the ob-vious boundaries and express what he sees, smells, hears, breaths, senses and thinks in his creations.
This sea of sensations encompasses all aspects of life. “Empellón isn’t about teach-ing methods, chefs and recipes,“ says Stupak. “It’s about showing our customers that by re-sponding passionately to this simple question
–“What do I want to cook?”– we can change lives, beginning with our own.”
Paintings, skulls and effigies of the Virgin of Guadalupe adorn the white walls of Empe-llón, whose menu is just as Mexican in spirit. Octopus in salsa papanteca, with chile de árbol, chipotle and pumpkin seeds; tuna ceviche with mango and grapefruit; melted cheese with beans and mole poblano are just some of the delicacies you’ll find.
Pâtissier Alex Stupak can be proud of this, his first solo experiment, because Empellón has become something of a phenomenon in New York. “The first time I traveled to Oaxaca,
Photo kent wang
gaSTrOnOmy empellón: mexican food in new york
“the first time i traveled to
oaxaca, i realized that a lot
of people in the Us have the
wrong idea aBoUt mexican
food. i started oUt By trying
vegetaBles and herBs and
comBinations of flavors that
i foUnd fresh and exciting all
at the same time. i foUnd myself
experimenting with ingredients
i’d never seen Before and
feeling like i hadn’t felt since i
was 18.”
56 Negocios i The Lifestyle
pâtissier alex stUpak can Be proUd of this, his first solo experiment, BecaUse
empellón has Become something of a phenomenon in new york.
Photo kent wang
I realized that a lot of people in the US have the wrong idea about Mexican food. I started out by trying vegetables and herbs and combina-tions of flavors that I found fresh and exciting all at the same time. I found myself experimenting with ingredients I’d never seen before and feel-ing like I hadn’t felt since I was 18,” he says.
The chef’s passion for Mexican food shines through in his lobster with wild corn and aro-matic epazote and you can practically taste his admiration in his pit-roast lamb in salsa bo-rracha, a spicy concoction of chile pasilla from Oaxaca, orange juice and mezcal.
“Our philosophy is that you have to give hungry people something that will satisfy them. The notion that food is like fashion, art or music doesn’t sit well with us, because we don’t want to be susceptible to the fickleness of trends. At Empellón we cook and eat what we love,” says Alex, adding that “food is like that initial spurt of passion that leads to artis-tic invention and then dissipates with success and ubiquity.”
But all these theoretical concepts fade into oblivion beside the long list of alcoholic bever-ages Empellón offers to drown its customers’ sorrows: a fine selection of wines and cocktails is complemented by several brands of tequila, a wide choice of mezcales from Oaxaca and Za-catecas, and sotol, a spirit distilled in Chihuahua.
You can also accompany your meal with a bottle of Cucapá beer from Baja California, one of the first microbrews to be marketed with the financial assistance and perseverance of Mexican entrepreneurs.
And for dessert, the Big Apple metamor-phoses into a village square in Mexico, serv-ing up fritters, churros –strips of fried dough sprinkled with sugar and cinnamon– and hot, milky Mexican chocolate. n
alex STuPak
Born in Leominster, Massachusetts, 31-year-old Alex Stupak made his first appearance in a restau-rant kitchen at the age of 12, having convinced the owner it didn’t matter he wasn’t old enough to work. His instinct proved right. After graduating from high school with a Certificate in Culinary Arts, he began to take part in competitions, finally winning a scholar-ship to study at the Culinary Institute of America.
Renowned for his innovative desserts, this chef with a keen eye for detail has seen the inside of the kitchens of several top restaurants. In 2003, at the tender age of 23, he was named Best Pastry Chef by Boston magazine and in 2008 he took on and beat Chef Catherine “Cat” Cora on Iron Chef America. Judge Jeffrey Steingarten, food critic for Vogue maga-zine, referred to him as an “unstoppable front of new ideas.”
Stupak was invited to the 10th anniversary celebrations of Pujol, the restaurant of acclaimed Mexican chef Enrique Olvera. Two dinners were served and one of the guest chefs was René Redzepi of Denmark, co-owner of Noma, which is currently rated the world’s best restaurant.
gaSTrOnOmy empellón: mexican food in new york
58 Negocios i The Lifestyle
SIRENS OF THE LYRICAL LANDS
The pop invasion has wiped them off Mexico’s mass music map –a blessing in disguise some music critics might say– but somehow their voices have been heard, rising above deserts and crossing seas before making the final leap out of
the fishpond. Carla Morrison, from the arid lands of Baja California, is the
youngest of the bunch. Lhasa de Sela, of Mexican and American ancestry, died of cancer in 2010, but YouTube has mounted a shrine to her music, an exotic mix of folk and rock. Mexico City-born Magos Herrera is the perfect accompaniment to a night of martinis on a cool terrace in some colonial city. And Denise Gutiérrez, vocalist of Hello Seahorse!, has made waves with her powerful, operatic voice.
Like Ulysses in The Odyssey, the songs of these sirens have bewitched listeners of the MP3 era with a captivating fusion of traditional folk rhythms and more contemporary indie, jazz and electronic beats. Essential listening for anyone who’s interested in what’s happening on Mexico’s music scene today.
nOrTHbOund
Carla Morrison has returned to her native Baja California, where she mesmerizes audiences with her sequences and loops, keyboard effects and electroacoustic guitar. “You can feel the melancholy and emotion of a highly innovative, vanguard and entertaining musician who suddenly lets rip sparks of mel-ody and joy,” as one critic describes her sound.
Photos archive
celestial voices aBoUnd in mexico, BUt theirs have moved listeners the world over. carla morrison, lhasa de sela, magos herrera and denise gUtiérrez. all mexican songstresses of export qUality.
by gUstavo aréchiga
carla morrison
muSic contemporary mexican songstresses
In 2006, after dropping out of the School of Music at the Uni-versity of Arizona, she formed Babaluca, a small, bilingual indie band. Shortly afterwards, in 2008, they were named “Best Indie Band of Arizona” at the Stylos Awards in Phoenix, Arizona. Three years later, Carla released her first solo album, which includes the track Tragos de Amargo Licor by norteño singer Ramón Ayala.
www.carlamorrison.net
deniSe guTiérrez
(a.k.a. lO blOndO, vanil’la face and d’niS)
Representing a new breed of iPod-era musicians whose tribes have tried to put as much distance as possible between them and the Rock in Spanish boom of the 1980s and 90s, Denise Gutiérrez is the vocalist of Hello Seahorse!, an indie pop band formed in Mexico City in 2005.
The band has progressed in leaps and bounds from the na-ïve sounds and lyrics of its early days to a more mature concept, especially Denise, who appears on Profundo Carmesí, produced by Mexican orchestra conductor Alondra de la Parra. Denise shares the mike on this album with Natalia Lafourcade and Ely Guerra, two other Mexican songstresses of export caliber.
Lejos. No Tan Lejos, the latest album released by Hello Sea-horse!, was produced by Mony Mark, who has worked with The Beastie Boys, The Red Hot Chili Peppers, Beck and Yamil Razec.
www.helloseahorse.com
uP: lhasa de Sela, rigHT: magos Herrera
60 Negocios i The Lifestyle Photo archive
THe wailing wanderer
The most haunting voice of all is perhaps that of Lhasa de Sela. Her father, Mexican, was a Spanish teacher and writer; her mother, from the US, was a photographer by profession. It’s no wonder Lhasa was already singing in the cafes of San Francisco by age 13. At 19 she traveled to Montreal, where she met Yves Desrosiers and went on to record La Llorona with him. The album sold over 700,000 copies outside Mexico.
A bizarre mix of rock, traditional Mexican folk music and Klezmer, a genre associated with the Jewish tradition, Lha-sa’s howls and wails have the power to evoke emotions that run the whole gamut. She wrote most of her songs outside Mexico: layer upon layer of folk, country, gospel, blues, pop and flamenco, laced with personal, often ironic lyrics sung in perfect Spanish, French and English.
Her voice can be heard on soundtracks to TV series like The Sopranos, the documentary I Am Because We Are, the surreal comedy Cold Souls, and the John Sayles drama Casa de los Babys. Lhasa died of breast cancer in 2010. She was only 37.
www.lhasadesela.com
denise gutiérrez (in the middle) is the vocalist of Hello Seahorse!
Pure Jazz
Magos Herrera hails from Mexico City, but her career hit its first high note in Italy in 1988, after she graduated from the Musi-cians Institute in Los Angeles. Considered one of the purest voic-es of Latin jazz, whose tessitura adapts perfectly to Portuguese, Spanish and English, Magos has six records under her belt.
This Mexican siren has devoted her energies to polishing her craft and the quality of her live performances, gracing venues like the Lincoln Center in New York, the Kennedy Center in Washington, Chicago’s Millennium Park and Madrid’s Galileo Galilei concert hall, as well as international jazz festivals in Mon-treal and Barcelona, to name just a few.
She also appears on music critic Tom Moon’s list of 1000 Re-cordings to Hear Before You Die: A Listener’s Life List. It was just over a decade ago, in the spring of 2000, when Magos released Distancia/Sunnyside, a record that topped the iTunes jazz chart for several weeks running and that was nominated for a Grammy.
To commemorate the Bicentenary of Mexican Independence, she recorded México Azul, a tribute to the music of the 1930s and 1940s that is starting to lure listeners from further afield. n
www.magosherrera.com
NEW HOME FOR FILMSthe national coUncil for cUl-tUre and the arts (conacUlta, for its acronym in spanish) has annoUnced that the cineteca nacional del siglo xxi proJect has Been awarded to roJkind ar-qUitectos.
The project includes the total renovation of the complex, originally built as the “Composer’s Square” in 1984 by Manuel Rocha and trans-formed on several occasions since becoming the Nation’s Film Archive and Film Institute.
In addition to the existing screening rooms, the complex currently has five archive vaults, four of them housing a col-lection of more than 15,000 film classics of world cinema in 35 and 15 millimeter formats. The fifth vault houses icono-graphic material, including posters, photographs, slides, negatives and video. The vaults surface will increase from 1,500 to over 2,200 square meters, in order to house 50,000 more reels of film. The space for the gallery and the digital restoration lab will have a surface area of 500 square me-ters and the offices, once reorganized, will be reduced from 1,900 to 1,800 meters. The new project will add four new screening rooms, for a total of 1,000 extra seats, in addition to renewing the existing screening rooms whose total ca-pacity will be increased from 2,050 to 3,050 seats. A six-lev-el above grade parking will be built with a capacity for 528 cars, compared to the current 422. This will free up 70% of the area now occupied by parking. That space, besides allowing the construction of the new screening rooms, will allow for an outdoor amphitheatre with a capacity for 700 spectators, a public park and a central public plaza.
The National Film Archives will increase its built area from 20,000 to almost 29,000 square meters, of which 7,000 are destined to public spaces. The purpose is to generate a new comprehensive cinematic experience and more pro-gramming options.
www.rojkindarquitectos.com
arcHiTecTure cineteca nacional
Photos courtesy of roJkind arQuitectos
62 Negocios i The Lifestyle Photos archive
Filmmaking around the world seems unstoppable, and films produced in Mexico don’t seem to stop earning awards and posi-tive reviews either. The coun-
try shares great directing talents with the world, such as: Alejandro González Iñárritu –Amores Perros, 21 Grams, Babel and Biuti-ful–, who in 2006 became the first Mexican to
be nominated for an Academy Award for Best Director; Guillermo del Toro –Pan’s Laby-rinth, Hellboy and The Hobbit (coming soon)–; and Alfonso Cuarón –Y tu mamá también, Harry Potter and the Prisoner of Azkaban and Children of Men.
Every year, thanks to a prolific national film industry, more and more foreign pro-ductions find in Mexico the perfect location,
the appropriate infrastructure, technology as well as the technical and professional ex-perience needed for feature-length films, short films, TV adds and music video pro-duction.
For nearly 60 years, Mexico has served as a film set for the most diverse foreign films. The beauty of its landscape and cities of unique architecture have provided the at-
62 Negocios i The Lifestyle
LOCATION: MEXICOsince the 1950s, mexico has attracted film prodUcers and directors from aroUnd the world, to whom the coUntry offers many Benefits, from competitive costs to amazing natUral and historical locations.
film induSTry location: mexico
mosphere for films of all genres, from classics like Susana (1951) or A Woman Without Love (1952), directed by Luis Buñuel, to large scale productions like Titanic or the action thriller Vantage Point.
In the 1960s, directors like John Huston and Sam Peckinpah found the perfect set-tings for their westerns. Those were the days when actors like Paul Newman and John
Wayne were enchanted by the natural beau-ty of the places where they filmed. Shooting films in Mexican soil has turned into such a positive experience that it has even boosted tourism. For instance, the 1964 film The Night of the Iguana, filmed on Mismaloya Beach along the Pacific Coast, made such an impression that the location soon became a celebrity holiday favorite.
Mexico’s reputation as filmmaking des-tination has been built upon beauty that ex-tends throughout its territory, as well as its great variety of climates, vegetation, archaeo-logical zones, cities and environments. All these benefits made the setting for films like Troy (2004), starring Brad Pitt and Orlando Bloom and directed by Wolfgang Petersen, possible. This was also the case of Apocalypto,
in the 1960s, directors like John hUston and sam
peckinpah foUnd the perfect settings for their
westerns. those were the days when actors like
paUl newman and John wayne were enchanted
By the natUral BeaUty of the places where they
filmed.
64 Negocios i The Lifestyle Photos archive
directed by Mel Gibson and shot in tropical climates among the magnificent Mayan ruins in Yucatán; and the Orson Welles classic The Lady from Shanghai (1948), mostly shot along Acapulco’s bays.
The country’s vast and diverse settings in the country have permitted filmmakers to faithfully reproduce the look and feel of innumerable cities around the world, from a dense atmosphere in Ecuador for Cróni-cas (2004), to the Chilean jungles in Missing (1982) and the Colombian adventurous scen-ery in Romancing the Stone (1984).
In Baz Luhrman’s Romeo+Juliet (1996), the Chapultepec Castle, the beaches of Vera-cruz and a church in Mexico City recreated the Italian city of Verona achieving the set for this modern version of Shakespeare’s classic. Rosarito Beach in Baja California turned into the frosty blue waters of the North Atlantic for 1997’s Titanic directed by James Cam-eron. Whereas in Pete Travis Vantage Point (2008), the film crew found everything need-ed to reconstruct Plaza Mayor in Salamanca, Spain, in Mexico City.
Since the 1980s, the northeastern state of Durango has been known as the “Land of
Cinema” due to the wide range of films shot there. Productions in Durango include Cave-man (1981) starring Ringo Starr; Revenge (1990) with Kevin Costner; Matador (2005) with Pierce Brosnan, and Bandidas (2006) with Penélope Cruz and Salma Hayek. This has also been the perfect location for televi-sion films, such as the US production The Librarian for TNT and Hispanic soap operas like Sin tetas no hay paraíso (Without Breasts There Is No Paradise), which has invested more than 300,000 usd in the state.
According to Kevin Trehy, Warner Broth-ers executive producer, Mexico’s true value as a location is that it benefits the communi-ties where these productions take place by allowing local businesses to supply their own services and products. In addition, some film shoots are also willing to employ residents for multiple tasks. Production costs are reduced by one-fourth in Mexico without diminishing any quality. An example is the film Troy, which contributed with 33 million usd to the economy of Baja California. Thus, Mexico has become a live set for world cin-ema, enriched by the talent and capability of its people. n
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MexIcan autoMotIVe Industry Reigniting the Engines
aerospaceINDUsTrY
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