Guanajuato, Mexico has experienced significant growth in recent years due to foreign investment and trade. The state exports over $4.5 billion worth of goods annually to over 50 countries. Major industries driving growth include automotive, metal fabrication, footwear, appliances, and agriculture. The state capitalizes on its central location in Mexico, access to major highways, affordable and abundant labor pool, and business-friendly government incentives to attract investment. Key to its success are ten industrial corridors along major transportation routes that provide infrastructure and clustering of suppliers to support industries.

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By Mike Patten
Guanajuato's
The question was posed to a maqu':: na:1at€: -==-:$y at a pianc in northern Guanajuato.Why Guanajuato?
"Look outside," he said.gest,.:r.ii:., :-s--:i::xounEain range surrounded by lush green fields on a 70-
degree day in June.
"Whe'e
=,se
,: - : :- ! : -3 w?:ii to be?"
lndeed. Guanajuaic cfe- -:: -.=-.: >--:-',.caiiy everphing imaginable.And the word is getting out. ln
the years since the Nc-,- : - =
-
=- =
..=a--.e Agreement took effect, Guanajuato has seen $3.5 billion in
new inves--ire.: :.-: -:: ---::=:=---€ iesult has been the addition of more than 80,000 new jobs.
Guanajua-.c :.-.-l:-: =s
-:A :,--:.: -...e raan $4.5 billion worth of product to more than 50 countries,a
158 percent increase in the last four years.Thirty-five percent
of the state's economy is now based on foreign trade.
Major growth is being felt in the automotive sector, as well as
the metal fabrication, footwear and appliance, and agriculture
sectors.
Its location in Mexicot Balio explains the delightful weather.
But there are other more serious advanages to iocating in
Guanaiuato. Consider:
.Several major highways bisecc Guar?.,!a:o. c:fsring rapid
access to virtually anywhere in M=x,c: c' :"s Unr:ec S:ates.
.lts industrial corridcr c{e's :.1 ::es :' 'i3.,300 or more
people each for investcrs :3 :-3:s: i-=.
.More than 50 percen: .''e,x::.: ::;u:a:ion lives within a
250-mile radius of Gua.: -a::. -a< "t il an ideal location for
companies seiling to che ::-es--: ::arket
.The state has plenry ci s<. e: :cor in a calm environment.
Strikesareminirnala-5?.-:;sraverages l.5percentayear.Anes.-::e.;C.000peopleayearjointhe
workforce, making '.?>.- z,z, zDiiicy plentiful,
.'An internationai a,=c'-- - '-eon offers 30 nonstop daily flights tc -' 2 o' U.S. cities.
.Mexico Preside'-r:v ce-:e Fcx is the former governor of the stare :^: ::raintains a home in the sate.
.The state governr!',e-: s :.--vel/ seeking foreign investment.
"The state is one cii:e -.ss: agressive," saysWilliam Dore,an ini-s:-ial park developer in rhe region.
"We've enjoyed our ..eiai::rsr ps with the people.The state has bee" ''ery aggressive with incentives and
that has been a major racic.-Tiere ls not as much red tape and that -as created a very good impression."
lndustrial corridors
Guanajuato has l0 cities ot more rhan lOO,OO0 residents each, ari four of them are located in an
industrial corridor along Mexico Hlghway 45.The corridor includes fioer optic lines for communrcations,
a four-lane highway, rail service, natural gas, an international airport in Le6n, l0 industrial parks, six golf
courses and 24 universities.A second corridor along Highway 57, the NAFTA Highway, includes the other
maior cities.
The biggest developmenr in Guanaluato was the establishment in 1992 of an assembly plant in Silao by
General Motors. The plant assembies Suburbans and Silverados and has sparked development of an
colonial
buitdings
add to
the citg's
charm.
r.
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fWin Plant News / September 2001 3l

3. t'
important cities, but no
one has an industrial
corridor like ours. Sixty
percent of our
population lives along
the corridor."
The corridor has easy
access to Mexico
Highway 57, the so-
called NAFTA Highway,
which offers direct
routes to Mexico City as
*ne*rct*ves
State incentives are based o: ::,:=
criteria, including the number of -
=-,, : l.
the proposed project would gene-.:: :*
amount of money invested. .-. :-:
location and the type of indusrry.
State assistance is available for :_.-. - -:
paperwork reduction,feasibiliry sru: :.: -.- :
tax exemptions. Specifically, rhe s-:= -
train employees on-site or in :.-: - - I
centers, and will also pay to send v/: -. : --
to other companies to learr -: *
Processes.
To facilitate the paperwork require:.:- _
the state will assign an account ex€._: ,:
to a specific project and pay for a co.:::.-
advisor for up to three months.
Fees for construction licenses and rc:-
public fees are waived, and proper:.
=exemptions are available for qua .=:
projects.Additionally, the srare will p:. _
develop infrastructure around the pr: =:if needed.
Beyond the state governmenr -::
companies will find I9 major indu::-.
parks in rhe smre to choose from.
automotiye supplier industry in the region.
ln fact, more than $2 billion has been
invested in the statei auto industry.
East of Silao. major l<itchen appliance
manufacturers Mabe and Whirlpool have
operarions in Celaya with the attendant
suppliers nearby. Other major industries
can be found in Le6n; lrapuato and the
capital city Guanajuato. More than g323
million has been recently invested in this
i ndustry.
"One of the biggesr differences between
Guanajuato and otner sEtes js we have
l0 ciries with ai teas: lG3.C00 ;e:cie." says
Guillermc Rcn e .c P:c"=::. : -=c::- ci
the sia:e's ea:-:- : ::.= ::-=-: :.-::
"Y^,, --^.^- ^--ruu L4 . ; ;L _:-=-S=:=: r. :- :-: :-:r.:
well as the U.S. border. Mexico Highway
55, connecting the Gulf of Mexico wiih the
Sea of Cortez,and major cities in between,
also bisects the corridor.
Perhaps most important to investors is
a user-friendly government. Gov. Juan
Carlos Romero l-{icks' administration is
doing all it can to artract foreign
investment. State incentives are among the
most generous offered in Mexico. ln
addition, rhe stare government has
established procedures designed to
minimize red tape and assist new
manufacturers with everything from site
s=leciic'r lc hiring new workers. Once the
r,:"-.:.s :.re .irei, the state has an
:::-:_:-----'---:_-ic.
paE"ks
major industrial par-.:
f,ne5+astria$
Tnere are l9
T[vin Plant News / September 2O0t
www.turinplantner*

4. The Business
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5. the state, with a new park under
development in Silao.
Among the parks is Parque lndustrial
Apaseo, l5 kilometers from downtown
Quer6taro on the Quer6taro - h"apuato
expressway (Highway 45), in the
municipality ofApaseo el Grande,and only
l5 kilometers from the NAFTA Highway.
Parque lndustrial Apaseo has a total of
42 salable heetares, out of a total of 49
developed hectares, and is composed of a
variety of lot configurations, ranging from
a large I 0 to I 2 hectare property, to 4 to
6 hectare properties and smaller 5 and
5,000 square meter lots.
Parque lndustrial Apaseo is pr:epared to
provide a one stop shopping, turnkey
solution. Build to suit long term lease
financing is nrade possible through strategic
alliance with U.S. and Mexican investor
groups. Decimsa provides professional
world-class construction services. with
more than 30 years experience in industrial
construction throughour the United Starcs
and Mexico.
Adequate iabor supl,y's g;a-:':+ed c..,le
to the vlcini;y ci --:e :cr.. at A::-.=: e
Grande !pc;. 5C.3I, a-: :-=- 'z?=;
villages. T"e ,A:asa3 - i- : :: :, :
guarantees efficient conrmunication fr' ry'
adequate number of telephone Iines.''r-lo
along with the digital voice and -a
underground network provide state i=*
art communications.
Parque industrial Apaseo offers a :
million cubic meter per year capaciq d
within the property, as well as a ci:r
and elevated tank that guarantee hl=:
supply to the users. A wastewa--e-
treatment plant provides treatmet--: t'
residual and , wastew?te.[, mee::
environmental and ecolog
-.reguirements and standards, allo* ng
adequate maintenance of landscaped ae,
Streets throughout the park are {
meters wide, built with high qualiry asprs
and with 2-meter wide sidewalks on 5trr
sides of the street Carefut supervism,
and quality control throughour
consrructiofi Process assure the
and log lifetime of the roads, which rtm
ciesigned to withstand constant
Border Business
Consultants
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I +,5 ofth$estcm Driye
>uirc .
I I l)eso.'fcxas 79912
((J1.i) u77-2020 fax (91.5) 577-2222
E-rrrail: recep@psrbb.coru
(lln'. Panamericana No. 6(179 l-ocd 1
C:rr. Parrnrrrelie:rrr:r r Blrd. lttl8,,t;t
Cd. .luarez. Clhih.. IX . CP 326()0
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lmproving
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A Business Solutions Consulting Company
Se habla Espafiol
Frame, CPIM Principal
Telephone/Fax (91 5) 833-3731
E-mail : cf ramel @ elp. rr.com
committed to opening new iob
opportunities and has a lob creation
incentive program.
ln crder to avoid lengthy negotiations
'e,-'-1
f;-:5is1 Fecercl de Elecuicidad |CFE1.
--- e'::= = =
: e ::-r c Go'^'ea u:i i l:y arc vicer'.
2=- = i -:<=-. :-a -.,-.s1:=i .-
its own electrical substation, prcrr:tmg
adequate electric power se:-.'.i-
throughout,the park for its cir=-.:="
requirements.
TELMEX (Iel6fonos de M€xicc' :u
pr.ovided a rnicrowave network :
Tkin Plant Hews / September 2001 www.twinplarrlrc- :

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ii*ncstsent
hil*'*e,t hg,tus,'.
industrial traffic.
A guard house monitoring the ingress
and egress of vehicles to the park, as well
as 24 hour security with security fencing
surrounding the park perimeter.
Parque lndustrial Apaseo is being
developed by Desarrollos y Promociones
de M6xico S.A. de C.V. DPM is a division
of Grupo DRT (Desorro/los Residencio/es
Iuristicos), which is dedicated to the
development, construction, and marketlng
of residential homes, affordable and low
income housing, hotel complexes, as well
as the developmen: ol:ndustrial Drojecrs.
Grupo DRT las a-l e ex:e.'=::3 -:ie
developmen: .' ,,a':-:::: -.-:.-
parks, having ae,:3::: -...=-1. '.'
lndustrial pro-e:-j - -::: -.:
- - ... --- : - :
Homes (a ma;c- -S -:-::- ::- :.-
Hines lnteress. --:
i ,r',I 1- '. .
The Silao lncius-.- 2 ::-,. J.:: :=.: ::::
by the Garcia Lai'-::'-. 3-:-: --= : :-:
is ideally locarec '.- :.^:::^ =: - :-:
automotive indus:'r,as : s ca-:::: !,
miles from Silao ar-,: ess :-i- s.,:- - =:
from the GM plar: T-e ::.< s c- :-.
state's main highway ara ^3s -ai, a::ess.
Major tenants Incii..:ce Ar::erican Ax;e.
Oxford Automorive. Vy'sye rhae ;ser.
Aventec, Lagermex, Conri n encal Teves and
others.
Several nearby towns ensure a sready
supply of labor.
The park's wide streets (up to 35 meters
wide) are designed for long and heavy
trucks and trailers. lt has its own electric
,'rww. twinplantnews. com
substation; lighted boulevards and fiber
optic lines are available.
The park is being developed in phases and
will encompass 1,366 acres upon
completion.
Five water wells and two water treatment
plans are included in the project, as well as
a private security system and green areas.
Plans call for onsite offices for Customs
agents, state government, banks and a gas
station.
Fipasi also builds industrial plants and
warehouses and can offer either in lease
situations. lt provides the following integral
services:
.Property search, construction or lease.
.Back up with negotiations with rhe
SOVernment.
.lnrernarional mortgages to finance che
transactt o n.
.Legal advice on the transaction.
The broker for the project is lnsignia/ESG,
one of rhe world's leading real estate
-.:i-^- i:_- _=i
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=S=:=
-,aS--'..=-: CAa<;ng ?:: tr:ner
s:-, aes. : s :---=-: I one o: the !3t :--ee
-^- - -;-_Ei. =:<:= :=,v.L=: : rrts in the WC':.
Once es-,:ciishec. :cmpanies here re)crt
no labor problems.There have been fewer
than five work stoppages in the pasc l0
years.And while the area is evolving from
agriculture ro industry, there is enough of
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firin Plant News / September 2001 35

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an industrial culture here for worken:
='understand'how
to succeed in indusrr
ln the northern corridor, Parque Qoccr
includes the same major amenities anc r€
of ivailable land Rail, natural gas, elem
'iubstations and water. are all availab{a
=
well as access to maj-or freeways.
Antonio Matas Llergo, Pargue Opc;-
marketing manager, says his compar.
stu{ied Guanaluato; Quer6taro and S:rE
Luis Potosi before settling on Guanaje=
in J?95. llis park targ€ts automout=
suppliers.
l'The tr.,end of manufacturing is ::
concentrate in central Mexico," he s4a
l'Thestate of Guanaiuato is'byfarthe nrc=
:ggressive state in central .Mexico m
suppol.t of new indultry," ,.
Labor quality
With 50,000 new workers a year joi
dre labor ficrce,,companies will have :o
problem finding availab-le' labor. T
worldorce is stable :.urrnoverfor the
aYerages 1.5 percent a year.. - and
are few. A recentrrsurvey'showed !
percent of all companies in the
reported a labor problem in the lasc
rears.
"l think the workforce in-Guanajuaa r
ruly outstandingi' says Hank l'lale,
manager of GM's Silao plant. "This
has some strict requirements for llin*
We use an assessment process desi
to bring us o;rly the verf best people-
day one werve been able to find p€cp€ !
Guanaiuato who meet r- ==
requirements;"
Mike Pofien is monoging edhor ofT,,r
News.
www.twinplarrE;sm