Vallejo industrial zone spreads over a 500 hectare surface and contributes over MXN $125,000 million in manufacturing production.
The company Doppelmayr, currently in charge of the construction of the Cable Bus Line 1, will consolidate its operations in Latin America based in Mexico City as it is now building a hub and a training, supply and control center in Vallejo.
The investment of Doppelmayr is just one of many that are coming to Vallejo, an industrial zone that spreads over a 500 hectare surface in the borough of Azcapotzalco in Mexico City. Vallejo contributes 4.7% of the national manufacturing GDP and is home to 1,580 manufacturing companies that generate around 46,000 jobs, mentions Mr. Fadlala Akabani, head of the Secretariat of Economic Development (SEDECO) of the Mexico City Government.
Vallejo Industrial Zone started out on the outskirts of Mexico City, but this changed dramatically with the growth of the City and it is now located in the heart of the Capital. At its height during the 1970 's, it hosted 800 companies and 71 out of the 500 most important Mexican corporations were located there.
The main job-creating companies in Mexico City are located in Vallejo: Bimbo, Femsa, Pepsico, P&G, Helvex, Neopharma, Sherwin Williams, Nacobre, Lala, Gamesa, Condumex, to mention a few.
Mr. Fadlala Akabani reveals several investments for the area have been announced, including companies such as O'Donnell, Honeywell, Sears, Neolpharma, Prologis and others. “We have shown a few warehouses to Yutong and a decision will be made soon. There is also a very strong American company whose headquarters are in Los Angeles that is coming to Vallejo.”
The head of the SEDECO mentions that part of the importance of returning Vallejo to its former glory has to do with its strategic value. “We visualize Vallejo-i as a business center that can host world-class innovation and technology companies that will create good, well-paid jobs.”
Vallejo was created as part of the post-Revolution modernization process in Mexico. The first companies were established in Vallejo in 1929. The industrial zone consolidated during the 1930 's when the March 18th Refinery was built there. The area was officially declared an Industrial Zone by Presidential Decree in 1944. According to the 2020-2050 Urban Development Plan for Azcapotzalco, Vallejo is still considered a very important industrial zone for Mexico City.
“We visualize Vallejo-i as a business center that can host world-class innovation and technology companies that will create good, well-paid jobs.” Fadlala Akabani, head of the Secretariat of Economic Development of the Mexico City Government.
Strategic Location
Vallejo Industrial Zone is strategically located between two airports and close to Pical Pantaco Industrial Park, which connects the Border Customs Office with the ports of Veracruz, Manzanillo and Lázaro Cárdenas. These two facts give economic and legal certainty to investors.
“Vallejo will be connected to Felipe Angeles International Airport (AIFA) if more cargo flights start there. It is an easy ride from Pical Pantaco industrial park to AIFA and products can be moved from Pical Pantaco to other industrial parks in Mexico by air in just one day or they can come in from the United States and be transported to Central and South America also by air,” explains Mr. Fadlala Akabani.
The SEDECO and the Secretariat of Education, Science, Technology and Innovation (SECTEI) signed an agreement with the Association of Real Estate Developers (ADI) in March this year to encourage the participation of the real estate sector in Vallejo-i to complete the biggest logistic and industrial innovation cluster in Mexico City.
“We have had talks with industrial hall owners to give them a few recommendations. Our first recommendation is to modernize their halls. We have organized business meetings with companies that modernize and transform halls into smart halls and have persuaded owners and real estate agents to move forward with the renovation so they can rent out their halls. Most have agreed to renovate and we are working alongside them during the process. Only 15% of the industrial halls are currently unoccupied,” mentions Mr. Akabani.
Mexico City Industrial Heartland
• +500 hectares is the surface of Vallejo Industrial Zone.
• 4.7% of the national manufacturing GDP comes from Azcapotzalco.
• 1,580 manufacturing companies that generate 46,000 jobs.
• 15% of the industrial halls in Vallejo are currently unoccupied.
• MXN $100 million were invested in rehabilitating Ceylan Avenue which is 4.1 km long.
Source: Secretariad of Economic Development of the Mexico City Government.
“The revitalization project has been funded partly by the local Council and partly by donations of those who are part of the trust. These donations have been used mainly for the improvements of the industrial zone. The Borough is also working with NGOs and industrial chambers to advertise the warehouses that are currently unoccupied as these can be used by last mile companies and it is a way of bringing in more investment.” Margarita Saldaña Hernandez, Azcapotzalco Mayor.
Revitalization of Vallejo Industrial Zone
The revitalization of Vallejo Industrial Zone is one of the key strategic projects of the Mexico City Government and the borough of Azcapotzalco to encourage sustainable and inclusive economic development
The objective is to transform Vallejo into an investment magnet for innovation and green companies, therefore the name Vallejo-i, where 'i' stands for innovation. The City’s government is investing resources to revamp the infrastructure in the area and is working together with industry, academia and other national and international partners to develop a research and innovation hub in Vallejo.
On November 3, 2020, Ms. Claudia Sheinbaum Pardo, Mexico City Mayor, sent to the local Congress the initiative for the 2020-2050 Urban Development Plan for Vallejo and it passed on March 9, 2021.
The Vallejo Project consists of four dimensions to achieve economic development in the industrial complex: improve the urban environment and public infrastructure; foster innovation and technological development; urban planning and zoning in the area and economic development and job creation.
One of the first actions to encourage economic development in Vallejo was the rehabilitation of a 4.1 km stretch of Ceylan Avenue, from Maravillas Road to Cuitláhuac Avenue. The works involved replacing 71,000 square meters of tarmac with hydraulic concrete, redesigning crossings to make them safe and replacing sewers. Furthermore, 2,700 square meters of curb and 1,500 square meters of street garrisons were repaired. The work was completed on December 31, 2019 and MXN $100 million was invested.
Mr. Fadlala Akabani says the borough of Azcapotzalco has shown a lot of interest in the Vallejo revitalization project. “The Azcapotzalco Mayor has been incredibly helpful and we are working alongside the Vallejo Association of Industrials. We have worked in full collaboration as we want to obtain good results to show to the people.”
Ms. Margarita Saldaña Hernández, Azcapotzalco Mayor, mentions in an interview that the Association of Industrials created a trust fund, and the Borough and SEDECO are part of it. “The revitalization project has been funded partly by the local Council and partly by donations of those who are part of the trust. These donations have been used mainly for the improvements of the industrial zone. The Borough is also working with NGOs and industrial chambers to advertise the warehouses that are currently unoccupied as these can be used by last mile companies and it is a way of bringing in more investment.”
Ms. Saldaña Hernández declares she has met the European Union Delegation in Mexico to look at a Circular Economy project for Vallejo. “The Vallejo project focuses on innovation, clean industry, and sustainable development and it is interesting for the EU because there are clear examples of symbiotic relationships that could exist among companies in the area. We are looking at projects to collect by product oil and sell it to produce biogas. We have an agreement with Neolpharma to use the water they recycle for our green areas. We are talking about 60,000 liters a day for our green areas.”
Azcapotzalco Mayor extends an invitation to foreign investors to get in touch and learn more about Vallejo. She also mentions that it is possible to negotiate directly with the industrial hall owners and get a good deal. “The Borough is here to help. We can accompany you through the process and help you through the legal hoops. Please contact to Mr. Jorge Palacios Arroyo, head of the Economic Development Department.”
