Mexico Pledges $800 Million In 2004 Manufacturing Investments
Dec 5, 2003
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Assemblies for export factories have committed to invest more than U.S. $800 million in their Mexico operations next year, according to the U.S. government. Representatives of Mexico's National Maquiladora Industry Council said new investments will be for the production of microprocessors, plasma display television sets, medical equipment, jet engines, auto parts, and other high tech goods.
Mexico's Economy Ministry said companies like Sony Corp. and Delphi Corp. are among those who announced new capital commitments. The investments are expected to create at least 45,000 new jobs.
The maquiladora industry employs more than 1 million Mexican workers who assembly parts that enter the country duty-free into final products for export. The sector accounts for about 50 percent of Mexico's exports.
"The investments announced…have the advantage of not being directed at simple assembly processes, but rather they are oriented toward production of goods with greater added value, which implies technology development and is associated with better real salaries for Mexicans," Mexico's Economy Ministry said.
The maquiladora industry, like most manufacturing segments in Mexico, has shed thousands of jobs in recent years due to the slow global economy and competition from countries with lower labor costs and business operations. (Dow Jones)
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