1. Mexico’s new incentives to reduce Chinese imports
In a significant move to bolster its economy and strengthen trade ties with North America, Mexico has announced a series of tax and financial incentives aimed at encouraging nearshoring and reducing dependence on Chinese imports. President Claudia Sheinbaum unveiled the country’s new industrial policy, known as Plan Mexico, during a presentation at the National Museum of Anthropology in Mexico City.
Key Incentives and Benefits
The incentives include accelerated depreciation of assets, allowing companies to deduct a substantial portion of the cost of machinery and equipment purchased in 2023-2024 as a tax write-off much sooner than usual. Additionally, businesses can benefit from a 25% deduction on training expenses for workers over three years, promoting workforce upskilling.
Strategic Goals
The primary goal of these incentives is to attract foreign manufacturers to set up operations in Mexico, thereby reducing the country’s reliance on imports from China and other Asian countries like Malaysia, Vietnam, and Taiwan. This initiative is expected to strengthen Mexico’s economic relationship with the United States and Canada, making it a more attractive destination for foreign investment.
Economic Impact
The Mexican government anticipates that these measures will boost the country’s GDP by 1.2% and enhance the overall North American economy. By promoting local production, Mexico aims to support its domestic industries and create a more resilient supply chain.
Challenges Ahead
Despite the promising incentives, Mexico faces several challenges in fully positioning itself as a top nearshoring location. Issues such as skilled labor shortages, infrastructure inadequacies, and potential political and economic factors, including U.S. tariffs or policy changes, need to be addressed to support the influx of increased manufacturing activity.
Conclusion
Mexico’s new industrial policy represents a strategic effort to align itself more closely with North American trade partners and reduce its economic dependence on China. With the right implementation and support, these incentives could significantly enhance Mexico’s manufacturing sector and contribute to a more robust and integrated North American economy.
2. JATCO opens new manufacturing plant in England
Sunderland, UK – JATCO Ltd, a leading Japanese automotive automatic transmission manufacturer, has officially opened a new manufacturing plant in North East England. This significant development is located on the International Advanced Manufacturing Park and represents a substantial investment in the UK’s automotive industry.
Key Highlights:
– Investment and Jobs: The new facility represents an investment of up to £48.7 million and is expected to create up to 183 highly skilled jobs.
– Production Focus: The plant will produce 3-in-1 electric vehicle powertrains, which integrate the motor, inverter, and reducer into a single, compact module. These powertrains will be supplied to the nearby Nissan Sunderland Plant.
– Strategic Importance: This facility is part of JATCO’s strategy to support Nissan’s EV36Zero project, which aims to advance electric vehicle production and sustainability.
Statements from Key Figures:
Tomoyoshi Sato, CEO of JATCO, expressed his pride in opening the new plant, highlighting the long-standing partnership with Nissan and the importance of this investment for the future of electric vehicles in the UK. Business and Trade Secretary Jonathan Reynolds also emphasised the significance of this development for the UK’s economy and automotive industry.
Future Prospects:
The new plant is expected to reach a production capacity of 340,000 units, significantly boosting the local economy and reinforcing the UK’s position as a hub for automotive innovation.
This new facility marks JATCO’s fourth overseas production plant, with other locations in Mexico, China, and Thailand. The company’s commitment to innovation and sustainability continues to drive its global expansion and support for the automotive industry’s transition to electric vehicles.
3. Infineon Technologies builds new production facility in Thailand
Samut Prakan, Thailand – Infineon Technologies AG, a leading German semiconductor manufacturer, has officially commenced construction on its new semiconductor backend production site in Samut Prakan, located just south of Bangkok. This strategic move is part of Infineon’s broader plan to diversify and optimise its manufacturing footprint in Asia.
Meeting Growing Demand
The new facility is designed to meet the increasing demand for power modules, which are essential components in various industrial applications and renewable energy systems. The first phase of the facility is expected to be operational by early 2026, with the potential for future expansion based on market demand.
Strategic Investment
Infineon’s investment in Thailand is supported by the Thailand Board of Investment (BOI). The project underscores the strong partnership between Infineon and the Thai government, highlighting mutual confidence in Thailand’s business environment and growth potential. The establishment of the National Semiconductor and Advanced Electronics Policy Committee in December 2024 further supports this initiative, aiming to enhance the regional semiconductor industry and ecosystem.
Enhancing Supply Chain Resilience
The new backend fab will play a crucial role in diversifying Infineon’s manufacturing landscape. As global efforts towards decarbonisation and climate protection drive demand for power modules, the facility will ensure that Infineon can reliably deliver high-quality products to its customers. The highly automated fab is designed to operate with high efficiency, resilience, and quality.
Workforce Development
In preparation for the new facility, Infineon has developed a comprehensive training program to enhance skills in artificial intelligence (AI), digitalisation, and automation. The first group of Thai engineers has already completed training at other Infineon locations, ensuring a skilled workforce ready to support the new production site.
Conclusion
Infineon’s new production facility in Thailand represents a significant step in the company’s strategy to expand its manufacturing capabilities and support its overall growth. By investing in this state-of-the-art backend fab, Infineon is well-positioned to meet future customer demand and strengthen its supply chain resilience, contributing to the growth of the semiconductor industry in Thailand and beyond.
4. US firm Enfield partners with Saudi’s company to launch $4bn sports fund
Washington, D.C., January 13, 2025 – In a significant move set to reshape the global sports investment landscape, U.S.-based Enfield Investment Partners has announced a strategic partnership with Saudi Arabia’s SURJ Sports Investment. This collaboration coincides with the launch of Enfield’s new $4 billion global sports asset fund.
A Strategic Alliance
The partnership aims to leverage the strengths of both entities to explore and capitalise on growth opportunities within the global sports sector. Enfield and SURJ will focus on investing in sports teams, leagues, media, and infrastructure, with the goal of enhancing fan engagement and driving economic and social returns.
Driving Global Sports Investment
SURJ Sports Investment, a leading sports investment powerhouse in Saudi Arabia, is committed to fostering international growth and enhancing the domestic sporting ecosystem. The collaboration with Enfield is seen as a pivotal step in achieving these objectives. Danny Townsend, CEO of SURJ Sports Investment, expressed his enthusiasm for the partnership, highlighting the shared vision for the future of global sport.
A Vision for the Future
Jake Silverstein, Co-Founder and Chairman of Enfield Investment Partners, emphasised the transformative potential of this partnership. He noted that the launch of the global sports fund marks the beginning of a promising new chapter for both organisations. The partnership is expected to attract further regional and global investments, bringing sports fans and audiences closer together.
Conclusion
As the global sports landscape continues to evolve, the partnership between Enfield Investment Partners and SURJ Sports Investment represents a bold and forward-thinking approach to sports investment. With a shared commitment to innovation and growth, this collaboration is poised to make a significant impact on the world of sports.
Featured image PUERTO DE MANZANILLO by SCT México PDM 1.0