• Government
    trusts attract investors
  • The foreign companies that have turned to Mexico to settle in any of its industrial zones not only have the option to approach to private developers but also to government trusts created in the 70s with the purpose of generating territorial reserves where industrial plants and industrial warehouses have been constructed according to plans, projects, work programs and specifications proposed by the settlor.

  • Although emerged in the 70s, nowadays government trusts continue to promote foreign direct investment to its parks, industrial plants and industrial warehouses, at a juncture where it offers investors certainty in land ownership in the feasibility of the basic services, in operating permits and in the quality of buildings and internal infrastructure as well as a nearby location to principal trade routes, educational centers and suppliers in the production chain.

    In an interview, spokesmen of four government trusts expose what are the competitive advantages and facilities they offered to investors to establish in industrial parks located in Aguascalientes, Estado de Mexico, Michoacán and Tlaxcala.

    Pro-Environment Industrial Zones in Aguascalientes
    In 2015, revenues from the sale of industrial land in Aguascalientes reached 25.7 million pesos. This amount is the result of the commercialization of lots in industrial parks Chichimeco, Logistics, Automotive and Tecnopolo I, according to the Fifth Report of Governor Carlos Lozano de la Torre.

    The sale of industrial land in Aguascalientes has occurred in a context where the value of the manufacturing production in the entity increased 11.7 percent between January and July 2015, generating more than 103 billion pesos during this period.

    It was in 1975 when the government of the State of Aguascalientes created the Industrial Development Trust, with the aim to promote parks and industrial zones which benefit the environment, to boost investment and contribute to job generation.

    In an interview, Eduardo Vilatobá Chapa, general director of Industrial Development Trust of Aguascalientes, declared that since the creation of this Trust “industrial development has raised, creating industrial parks one after another. The first one that was created was Industrial City and with the sale of the lands in the late 70s, that money was recovered and the parks that we now know in Aguascalientes have been created.”

    It is worth mentioning that the industrial parks of the Trust are located in the area of Industrial Corridor, in the municipalities of Aguascalientes, Jesús María, San Francisco de Los Romo, El Llano and Calvillo.

    He explained that the State Government develops nonprofit industrial parks, “in fact all we do is get the land, to the urbanization of what is required and sell the land at a price without profit, so to speak, to be able to be in the most competitive prices, which stimulates the establishment of companies in industrial parks of the Trust.”

    Eduardo Vilatobá Chapa said that companies settled in industrial parks have grown thanks to the investment of the Renault-Nissan and Daimler alliance, that in September 2015 began the construction of the complex Cooperation Manufacturing Plant Aguascalientes (COMPAS), which in 2017 and 2018 will see the birth of Premium compact vehicles of Mercedes Benz and Infiniti brands.

    For the general director of the Industrial Development Trust Aguascalientes “is the best option to invest in Mexico, the proof is the vast amount of foreign, national and local companies that have been established here and have success.”

    Industrial City of Xicoténcatl
    Given the expectation that the installation of automotive AUDI assembly plant in Puebla has generated, providing auto parts companies have identified the potential of Tlaxcala State for the installation of their businesses in industrial parks of the Trust of the Industrial City of Xicoténcatl (FIDECIX) which manages three Industrial Cities: Industrial City Xicoténcatl I, in Tetla; Xicoténcatl II Industrial City in Huamantla; and Xicoténcatl III Industrial City in Tlaxco.

    Bernardo Segura Sánchez, general manager of the FIDECIX commented that the importance of Government Trusts lies in the fact that they are formed by a group of skilled people in the administration and in dealing with different institutions of the three levels of the Government, which speeds up procedures and permits required by entrepreneurs. “You have a single contact which is the Trust to whom you expose your needs, who together with the Ministry of Economy and Development is in charge of making arrangements so that requirements made by corporations and entrepreneurs are answered faster.”

    He also affirmed that given the advantages of infrastructure and services in industrial cities, as well as the strategic location of Tlaxcala, its connectivity, the experience of the workforce and facilities and the support that the Government provides, “the domestic and foreign investors have considered enabling to invest here, consequently, automotive supplier companies such as LEAR Corporation, CEBI, Grupo Antolin, Clerprem, Knipping Automotive, among others, have been settled making a positive impact on employment creation.”

    The FIDECIX is part of the Mexican Association of Industrial Parks (AMPIP), plus it is certified with the Mexican Industrial Standard for Parks and with the Environmental Quality Standard, issued by the Federal Attorney for Environmental Protection (PROFEPA) and it is in the process of obtaining the New Scheme for Certified Companies (NEEC). “We are 135 kilometers far from Mexico City and that opens up a wide scene of possibilities, we have brought some companies from Chalco and Iztapalapa because logistics was difficult for them to handle, from here, they handle the entire distribution network faster and in a more reliable way, since the road network and logistics opens an extraordinary scene to companies,” added Bernardo Segura Sánchez.

    FIDEPAR upgrade logistics sector 
    Jones Lang LaSalle and Coldwell Banker’s studies reveal that the Metropolitan Area of Mexico is one of the regions with the highest growth potential in industrial parks with logistics vocation. From Tlalnepantla to Huehuetoca, on the border of Estado de Mexico with Hidalgo State, it is where the largest number of industrial parks linked to the logistics field is concentrated.

    In Estado de Mexico, the automotive, chemical-pharmaceutical and food and beverage sectors have developed logistic’s dynamism of the region. As an example, just to mention that to the Industrial Complex Santa Margarita, in Ixtlahuaca, have received investments from India and which are beginning to open new market niches in the downtown area of the country, including the export of chemical-pharmaceutical products.

    “There is now a mature market in terms of large processing companies. We have developed in the automotive sector suppliers, Tier 1, Tier 2 and Tier 3, and this supplier chain is very consolidated today the sector in the downtown area and has enabled specifically in the Valley of Toluca to have an installed capacity of skilled labor,” emphasized in an interview Víctor Hugo Colorado Reyes, general director of FIDEPAR. Precisely, to boost industrial growth through construction, purchase and sale of own industrial developments or through strategic alliances with private investors, the Trust for the Development of Parks and Industrial Zones (FIDEPAR) in Estado de Mexico was created in 1982, that currently commercializes industrial parks Jilotepec and Santa Bárbara. Also, in alliance with the Artha Capital Fund develops the Arco 57 logistics platform project in Estado de Mexico which covers about 717 hectares distributed in two polygons: North-San Augustine and South-San Francisco.

    Also, plans to develop new industrial parks in the municipalities of Nezahualcóyotl, Chimalhuacán, Nicolás Romero and Texcoco. “They are smaller projects, of approximately 10 hectares, industrial plants of 800 meters for smaller companies that require distribution of peripheral areas into selling point,” declared Víctor Hugo Reyes Colorado.

    It is worth mentioning that FIDEPAR is also part of AMPIP, works with two development models, one focused on real estate developers and the other one focuses on final customer that demands industrial buildings on lease.


    Michoacán: new center of industrial development
    The State of Michoacán is not only known for its already famous Lázaro Cárdenas Port, but it is also distinguished for  its 1,242 kilometers of railways, 13,000 kilometers of road network, four airports, prestigious universities and business opportunities in sectors such as agroindustrial, information technologies, metal-mechanical and supplier. Also, it is emerging as a state with logistics potential thanks to its strategic location and its connectivity with multimodal corridor NASCO, a transportation network of 2,500 miles that join Mexico, the United States and Canada and connects more than 71 million people and intertwines countless companies.

    Michoacán also has a structured network of industrial parks that are located inside the Industrial Logistics Corridor of Michoacán, which has access to key markets of Mexico, the southeastern United States and Asia. Through Trust of Industrial Parks of Michoacán (FIPAIM) the State Government has provided infrastructure to industrial parks and has made acquisitions of land reserves for development of sustainable urban areas, agro-industrial parks, of logistics and operation services, as well as centers of technological and research development.

    In an interview, César Erwin Sánchez Coria, general director of FIPAIM, revealed that as an incentive to investment, prices of industrial parks heritage of Michoacán are subsidized by the State, which allows to access costs of 70 percent below market.

    Also, it has a vast land reserve of over 1,866 hectares heritage of the Trust, intended solely for the development of agro-industrial and industrial parks, logistics and operation services, as well as technology and research development centers to enable the economic encouragement and employment generation through different business schemes allowed by the operating rules of this Trust, such as the latest schemes of the new Law of Public Private Partnerships,” commented the general director of FIPAIM.

    He noted that, with the designation of Lázaro Cárdenas Port as the first Special Economic Zone the goal is the creation of a new center of industrial development that creates jobs, develop value chains and trigger the demand of local services, fostering an exceptional business environment to attract investments.