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  1. 1. INVEST IN NUEVO LEÓN SEDEC PRESENTATION MINISTRY OF ECONOMIC DEVELOPMENT
  2. 2. INVEST IN NUEVO LEÓN AGENDA <ul><li>Why choose Nuevo León? </li></ul><ul><ul><ul><ul><ul><li>Privileged Location </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Modern Infrastructure </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Robust Economy </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>World-Class Education </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>High Quality of Life </li></ul></ul></ul></ul></ul><ul><li>What does Nuevo León have to offer? </li></ul><ul><ul><ul><ul><ul><li>Skilled, Productive and Quality oriented Labor Force </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Developed Local Suppliers </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Several developed Industrial areas </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>High Quality of Life </li></ul></ul></ul></ul></ul>
  3. 3. WHY CHOOSE THE STATE NUEVO LEÓN? PRIVILEGED LOCATION <ul><li>Strategically located in Meridian 100 </li></ul><ul><li>Equal distance to East and West coast of United States and Canada </li></ul><ul><li>Ideal location for exportations to the US and México </li></ul><ul><li>Proximity to seaports in the Gulf of México and the Pacific Ocean </li></ul>
  4. 4. HOUSTON, TX. 445 BROWNSVILLE, TX. 199 ALTAMIRA, TAMPS 320 M AZATLAN, SIN. 562 HERMOSILLO, SON. 896 MANZANILLO, COL. 693 DISTANCE IN MILES: GUADALAJA RA, JAL. 481 MEXI CO, DF 618 PUEBLA, PUE. 635 LA REDO, TX. 140 PHILADELPHIA, PA. 1,776 SAN FRANCISCO, CA 1,653 COLO MBIA, NL. 154 DALLAS, TX. 567 WHY CHOOSE THE STATE NUEVO LEÓN? PRIVILEGED LOCATION
  5. 5. <ul><li>Major US cities within a 2,000 mile radius </li></ul><ul><li>Quick access to major ports of entry in Colombia, NL and Laredo, TX </li></ul>WHY CHOOSE THE STATE NUEVO LEÓN? PRIVILEGED LOCATION COLOMBIA INTERNATIONAL BRIDGE INSTALLED CAPACITY 12,000 TRUCKS PER DAY CURRENT CAPACITY UTILIZATION APROX. 33% (3,900 TRUCKS PER DAY) TIME TO CLEAR CUSTOMS 8 MINUTES ON AVERAGE FREE TRADE ZONE 332 HECTARES (820 ACRES)
  6. 6. <ul><li>Highly efficient highway and railroad networks </li></ul><ul><li>Direct access to Highway 57, México’s main trucking route and the Interstate 35 in the US </li></ul><ul><li>Railroad system operated by private companies with connections to major ports and cities in US and México </li></ul>WHY CHOOSE THE STATE OF NUEVO LEÓN? MODERN INFRASTRUCTURE
  7. 7. WHY CHOOSE THE STATE OF NUEVO LEÓN? MODERN INFRASTRUCTURE <ul><li>World-class commercial airport in Apodaca, NL </li></ul><ul><ul><ul><li>New cargo terminal with a capacity of 20,000 tons per year </li></ul></ul></ul><ul><ul><ul><li>Close to 190 weekly non-stop flights to ten major US cities </li></ul></ul></ul>MTY AIRPORT INTERNATIONAL FLIGHTS ATLANTA 28 LOS ANGELES 14 CHICAGO 14 MIAMI 7 DALLAS 28 NEW YORK 4 HOUSTON 61 PHOENIX 7 LAS VEGAS 12 SAN ANTONIO 13 MTY AIRPORT CARGO CAPACITY TONS PER YEAR SIZE (M 2 ) CURRENT 20,000 4,000 POTENTIAL 40,000 8,000
  8. 8. <ul><li>The Latest Telecommunications Services </li></ul><ul><ul><li>Widespread availability of Fiber Optic, T1 and DSL </li></ul></ul><ul><ul><li>Capacity: 2.5 gigabytes per second </li></ul></ul><ul><ul><li>Services provided by leading companies like: Telmex, Alestra (AT&T) and Avantel (MCI World) </li></ul></ul>WHY CHOOSE THE STATE OF NUEVO LEÓN? MODERN INFRASTRUCTURE
  9. 9. <ul><li>Surplus of electrical power and water resources </li></ul><ul><ul><li>Electrical capacity exceeds demand by 2,350 MW </li></ul></ul><ul><ul><li>Recycled water available for industrial purpose </li></ul></ul><ul><ul><li>Monterrey treats 100% of its waste water </li></ul></ul>WHY CHOOSE THE STATE OF NUEVO LEÓN? MODERN INFRASTRUCTURE <ul><li>Abundant supply of natural gas to Monterrey </li></ul><ul><ul><li>Major sources are located just 112 miles from city </li></ul></ul><ul><ul><li>Natural Gas price is equal to Texas tariff </li></ul></ul>
  10. 10. ROBUST ECONOMY <ul><li>One of México’s leading industrial economies </li></ul><ul><li>Responsible for 6.9% of the country’s GDP </li></ul><ul><li>Producer of 9.2% of all of México’s manufactured goods </li></ul><ul><li>Highly attractive environment to foreign investors </li></ul><ul><li>FDI reached 1.74 Billion USD in 2002, 11.9% of México’s total </li></ul><ul><li>Monterrey declared “Best City for Doing Business in Latin America” by Fortune Magazine in December 1999 </li></ul>WHY CHOOSE THE STATE OF NUEVO LEÓN? FOREIGN DIRECT INVESTMENT IN NUEVO LE Ó N TOTAL FDI (USD) % OF MEXICO TOTAL JOBS CREATED IN 2002 1.74 BILLION 11.9% 9,365 IN THE LAST SIX YEARS 9.5 BILLION 7.3% 78,351
  11. 11. ROBUST ECONOMY Home to some of M é xico’s largest industrial groups ALFA Steel, Petrochemicals, Food, Telecomm, Autoparts CEMEX Cement CYDSA Chemicals, Plastics FEMSA Beverages IMSA Metal Mechanics, Automotive MASECA Processed Foods PROEZA Autoparts, Processed Foods, Software PROTEXA Construction, Petrochemicals, Tourism PULSAR Biotech, Financial Services QUIMMCO Metal Mechanics, Automotive VILLACERO Steel VITRO Glass Products XIGNUX Electrical Products, Autoparts, Processed Foods In 2002, total revenues of these 13 companies reached 34.3 Billion USD WHY CHOOSE THE STATE OF NUEVO LEÓN?
  12. 12. ROBUST ECONOMY Sample of international companies established in Nuevo Le ó n ABB LG ELECTRONICS AISIN SEIKI MERCEDES BENZ ALCOA-FUJIKURA MITSUBISHI BASF PACKARDELECTRIC CATERPILLAR PARKER ZENITH CELESTICA PHELPS DODGE DANFOSS PIOLAX DELPHI PIONEER DENSO SIEMENS ELCOTEQ TOYOTA TSUSHO GENERAL ELECTRIC UNION CARBIDE JOHN DEERE VISTEON JOHNSON & JOHNSON YAZAKI WHY CHOOSE THE STATE OF NUEVO LEÓN?
  13. 13. WORLD-CLASS EDUCATION <ul><li>High concentration of quality schools and universities </li></ul><ul><li>Home to the leading university system in Latin America, ITESM </li></ul><ul><li>ITESM and UDEM Universities accredited by SACS </li></ul><ul><li>More than 59 bilingual schools </li></ul><ul><li>Six education institutions with 100% English education </li></ul><ul><li>More than 30 universities and 143 technical schools </li></ul>Key strategic project: MONTERREY, CITY OF KNOWLEDGE WHY CHOOSE THE STATE OF NUEVO LEÓN?
  14. 14. WORLD-CLASS EDUCATION <ul><li>Educational level is 3 years higher than national average </li></ul><ul><li>Emphasis on the teaching of English as a second language in public elementary schools </li></ul><ul><li>Emphasis on technical training and education </li></ul>WHY CHOOSE THE STATE OF NUEVO LEÓN?
  15. 15. WORLD-CLASS EDUCATION WHY CHOOSE THE STATE OF NUEVO LEÓN? Source: SEP (Public Education Ministry) SECRETARY OF EDUCATION EDUCATIONAL PLANNING AND RESEARCH DEPARTMENT STATISTICS COORDINATION NUEVO LE Ó N COURSES 2002 - 2003 GRADE STUDENTS SCHOOLS AND INSTITUTIONS FEDERAL STATE PRIVATE AUT. TOTAL FEDERAL STATE PRIVATE AUT. TOTAL Kindergarden 64,144 39,279 34,064 0 137,487 972 388 349 0 1,709 Elementary School 244,008 184,599 58,709 0 487,316 1,445 821 209 0 2,475 Junior High School 102,417 79,357 21,908 0 203,682 318 306 140 0 764 Technical Schools 3,365 8,693 14,646 4,969 31,673 4 29 105 5 143 High School 26,156 8,107 30,051 43,783 108,097 15 25 126 70 236 Undergraduate 4,427 1,247 51,611 58,275 115,560 6 3 62 29 100 Graduate Schools 320 866 4,658 3,911 9,755 2 3 33 24 62
  16. 16. <ul><li>Number of Students in the University in Nuevo León in 2002-2003 </li></ul><ul><li>Natural and Exact Sciences 1,239 </li></ul><ul><li>Health 9,651 </li></ul><ul><li>Agriculture and Livestock 867 </li></ul><ul><li>Administration & Social Sciences 51,290 </li></ul><ul><li>Engineering and Technology 44,837 </li></ul><ul><li>Education and Humanities 5,343 </li></ul><ul><li>Source: SEP (Public Education Secretary) </li></ul>WORLD-CLASS EDUCATION WHY CHOOSE THE STATE OF NUEVO LEÓN?
  17. 17. HIGH QUALITY OF LIFE <ul><li>Monterrey is recognized as one of the safest areas in México </li></ul><ul><li>Life expectancy is higher than the national average </li></ul><ul><li>Per capita income is highest in the country after México City </li></ul><ul><li>Local private hospitals provide top quality medical services </li></ul><ul><li>Many sports and cultural events are held throughout the year </li></ul><ul><li>American influence in business and social life is widespread </li></ul>WHY CHOOSE THE STATE OF NUEVO LEÓN?
  18. 18. WHAT DOES NUEVO LEÓN HAVE TO OFFER? MONTERREY METRO AREA APODACA ESCOBEDO SANTA CATARINA GUADALUPE MONTERREY N Municipalities with the highest industrial activity MONTERREY METROPLEX San Pedro San Nicolás
  19. 19. MUNICIPALITY OF APODACA POPULATION PROFILE AGE MAIN INDUSTRIAL PARKS Stiva Aeropuerto La Silla Apodaca Kalos Apodaca Apodaca Technology Park Finsa Monterrey Huinala Industrial Park Milimex Apodaca ESTABLISHED COMPANIES CELESTICA ELCOTEQ EMERSON LG Electronics OSRAM TAKATA WHIRLPOOL YORK Sources: INEGI 2000, Bancomext 2003 WHAT DOES NUEVO LEÓN HAVE TO OFFER? KEY DATA APODACA % NL SURFACE AREA 250.9 KM 2 0.4% POPULATION 283,000 7.4% ACTIVE POPULATION 108,000 - - -
  20. 20. MUNICIPALITY OF ESCOBEDO POPULATION PROFILE AGE Escobedo Industrial Park Jomyco Escobedo Centro Urbano Canadá Periférico Industrial Park Las Américas Industrial Park INTERNATIONAL (NAVISTAR) MATTEL DOFASCO Sources: INEGI 2000, Bancomext 2003 WHAT DOES NUEVO LEÓN HAVE TO OFFER? MAIN INDUSTRIAL PARKS ESTABLISHED COMPANIES KEY DATA ESCOBEDO % NL SURFACE AREA 207.1 KM 2 0.3% POPULATION 233,500 6.1% ACTIVE POPULATION 85,000 - - -
  21. 21. MUNICIPALITY OF GUADALUPE POPULATION PROFILE AGE Kalos Ruiz Cortines Kalos Guadalupe Kalos San Rafael La Silla Industrial Park Interpack Industrial Park DELPHI KEMET PARKER GOODMANS Sources: INEGI 2000, Bancomext 2003 WHAT DOES NUEVO LEÓN HAVE TO OFFER? MAIN INDUSTRIAL PARKS ESTABLISHED COMPANIES KEY DATA GUADALUPE % NL SURFACE AREA 118.7 KM 2 0.2% POPULATION 670,000 17.5% ACTIVE POPULATION 269,000 - - -
  22. 22. MUNICIPALITY OF MONTERREY POPULATION PROFILE AGE Mitras Industrial Complex Stiva Barragán GE POLIMERAN ALLIANCE PLASTICS KOHLER SANIMEX WYMAN GORDON Sources: INEGI 2000, Bancomext 2003 WHAT DOES NUEVO LEÓN HAVE TO OFFER? MAIN INDUSTRIAL PARKS ESTABLISHED COMPANIES KEY DATA MONTERREY % NL SURFACE AREA 781.4 KM 2 1.2% POPULATION 1,110,000 29.0% ACTIVE POPULATION 453,000 - - -
  23. 23. MUNICIPALITY OF SANTA CATARINA POPULATION PROFILE AGE Las Palmas Industrial Park Jomyco Santa Catarina Milenium Santa Catarina Mitras Industrial City Kalos Santa Catarina CATERPILLAR CARRIER JOHN DEERE SIEMENS VDO TAKANISHI Sources: INEGI 2000, Bancomext 2003 WHAT DOES NUEVO LEÓN HAVE TO OFFER? MAIN INDUSTRIAL PARKS ESTABLISHED COMPANIES KEY DATA STA CATARINA % NL SURFACE AREA 927.6 KM 2 1.4% POPULATION 227,000 5.9% ACTIVE POPULATION 90,400 - - -
  24. 24. OUR INCENTIVES <ul><li>Payroll Tax (2%) reduction incentive </li></ul><ul><li>50% reduction for one full year, in municipalities included in the Monterrey Metro area </li></ul><ul><li>95% reduction for one full year, in municipalities outside of the Monterrey Metro area </li></ul><ul><li>Mixed Labor Force Training Program </li></ul><ul><li>Government hires workers for a three-month training period, with a salary equal to 1.5 minimum wage </li></ul><ul><li>Foreign company must hire up to 70% of the trainees by the end of the program </li></ul>WHAT DOES NUEVO LEÓN HAVE TO OFFER?
  25. 25. MAQUILADORA, PITEX AND PROSEC PROGRAMS <ul><li>Maquiladora and PITEX Programs </li></ul><ul><ul><li>Federal programs that allow the temporary import of raw materials, machinery and equipment into Mexico for manufacturing purposes </li></ul></ul><ul><ul><li>If NAFTA origin, value-added tax and import duties are exempted </li></ul></ul><ul><ul><li>If Non-NAFTA origin: value-added tax is exempted, but import duties are payable unless a PROSEC program is used </li></ul></ul>WHAT DOES NUEVO LEÓN HAVE TO OFFER?
  26. 26. MAQUILADORA, PITEX AND PROSEC PROGRAMS <ul><li>PROSEC Programs </li></ul><ul><ul><li>Applicants may import raw materials, machinery, components and equipment under preferential tariffs from non-NAFTA countries </li></ul></ul><ul><ul><li>Useful when importing goods from non-NAFTA countries to be processed and then exported to a NAFTA member country </li></ul></ul>WHAT DOES NUEVO LEÓN HAVE TO OFFER?
  27. 27. . NUEVO LE Ó N INVITES YOU TO SHARE ITS ECONOMIC SUCCESS ELOY CANTÚ SEGOVIA SECRETARY OF ECONOMIC DEVELOPMENT TEL: + 52 (81) 2020-656500 E-MAIL: eloy.cantu@nl.gob.mx

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