The document outlines the strategic advantages of establishing operations in the Mexican state of Baja California, highlighting its excellent infrastructure including ports, highways, airports, and utilities; skilled and stable workforce with over 50 universities; and proximity to major markets in North America and Asia through its many trade agreements and border crossings with California. Incentives offered by the state include payroll tax exemptions, workforce training funds, and support for innovation projects and supplier development.

2. MEXICO has free trade agreements with 45 countries.
BAJA CALIFORNIA is the closest Mexican State to ASIA.
STRATEGIC LOCATION

3.  Excellent access to NAFTA Market
 BC shares border with California
and Arizona, USA.
 BC is the only Mexican state bordering with
California (8th economy in the world)
 Los Angeles is 3 hours driving distance
 Baja California is one of the
MOST COMPETITIVE Mexican States
STRATEGIC LOCATION
Source: Center for the Continuing Study of the California Economy.
265 Km.
Border with
USA
1,550 Km.
Coastline

4. OUR PEOPLE
POPULATION DISTRIBUTION BY CITY
• 3.4 million total population
• Young Population: 66% of total population is under 34 years of age
• Tijuana and Mexicali within the 10 largest cities in Mexico
• Mexico total population: 112´336,538
Source: INEGI 2013/IV.
Tijuana: 1’696,430 49.4%
Mexicali: 1’012,099 29.5%
Ensenada: 511,772 14.9%
Tecate: 109,575 3.2%
Playas de Rosarito: 103,069 3.0%

5. • Non-union environment
• More than 60% of the State´s budget invested in
education
• Linkage Programs Leaders and National Pioneers
(school – industry - government)
• Hard working, skillful and competitive labor cost
OUR PEOPLE
PRO-BUSINESS COMMUNITY
• Top Private and State Universities with international
standards
• 51 Universities in Baja California
• Total under graduates: 90,455
• Engineering Students: 22,038
HIGH SKILLED AND STABLE HUMAN RESOURCES
Source: BC State Educational System 2012-2013

6. BORDER CROSSING POINTS
 6 strategic border crossing points
 3 of them used for inbound/outbound
cargo transport
 2,000 loaded trucks containers per day
 Programs to reduce border crossing
times (cargo: CT PAT / personal: Sentri &
Fast Pass)
 Border crossing time for cargo is
guaranteed to be a maximum of 8 hours
after arrival at the crossing point.
Source: USA DTS 2012
WORLD CLASS INFRASTRUCTURE

7. HIGHWAYS
 Baja California is well-connected
through world class highways.
 Excellent access to the rest of México
and the United States
Source: USA DTS 2012
WORLD CLASS INFRASTRUCTURE

8. RAILROAD
 Railroad cargo service is
provided by a Mexican-
American joint venture and
reaches destinations within
NAFTA market
 The new El Sauzal Route
will increase the railroad
interconnection, providing
access to the national and
international routes from
every strategic point in the
state.
Source: USA DTS 2012
WORLD CLASS INFRASTRUCTURE

9. SEAPORTS
 Port of Ensenada: closest Mexican seaport to
Asia operated by Hutchinson Group.
 The Port of Ensenada is Mexico’s first port
that receives the Green Port certification.
 Destinations: Hong Kong, Japan, Singapore,
South Korea, Australia, South America, among
others
 In addition, the Port of Long Beach, USA is
only a 3 hour away Baja California, while the
San Diego Port is just 30 min away.
 The new port in El Sauzal will have a 500,000
container capacity and along with the new El
Sauzal railroad line, it will have
interconnection to the US and Mexico.
 Seaport shipping and receiving capacity is
guaranteed for the next 10 years.
WORLD CLASS INFRASTRUCTURE

10. AIRPORTS
• 2 international airports with daily flights
to mayor cities in Mexico ( Tijuana &
Mexicali).
• Only Mexican state with direct flights
from city of Tijuana to Narita, Japan and
Shanghai, China
• Closeness to major international
airports in the United States: Los
Angeles LAX and San Diego SAN.
WORLD CLASS INFRASTRUCTURE

11. WORLD CLASS INFRASTRUCTURE
WATER
• While the Colorado River is the current
main water source, desalination plants
provide additional availability with
4m3/sec capacity in Rosarito, 2m3/sec in
Ensenada and 300 lt3/sec in San Quintin.
• Water supply, is guaranteed in Baja
Caliofrnia for new companies.
• If the new companies have high water
requirements, Mexicali can guarantee a
supply of 2 m3 per second with
immediate availability.

12. WORLD CLASS INFRASTRUCTURE
ELECTRICITY
• Baja California has one of the most
competitive energy costs in the world.
• The average cost per green-sourced MW of
electricity for 24/7 industrial use is under
USD $58.
• In addition to CFE, there are two other
private energy companies that provide
Solar and Wind sourced electricity.
• With these alternatives, energy costs for
industries are guaranteed to be at least
15% below CFE’s rate for the next 20
years.
• All new investments in Baja California have
access to 20MW of green-sourced energy
guaranteed for their main facility and
future expansions.

13. WORLD CLASS INFRASTRUCTURE
UTILITIES
NATURAL GAS
Baja California has a storage and distribution
terminal that ensures the current and future
demand of this energy.
Natural gas is provided by Sempra Energy
and offers the most competitive price
nationwide.

14. WORLD CLASS INFRASTRUCTURE
INDUSTRIAL PARKS AND ZONES
Total: 87 Industrial Parks
and Zones in Baja California
Tijuana 51 Industrial Parks
Mexicali
25 Industrial Parks
1 Aerospace Park
Ensenada
4 Industrial Zones
1 Industrial Park
Tecate 3 Industrial Parks
Rosarito 2 Industrial Parks

15. • AEROSPACE
• AUTOMOTIVE
• MEDICAL DEVICES
• RENEWABLE ENERGIES
• BIOTECH
• ELECTRONICS & SEMICONDUCTORS
• INFORMATION TECHNOLOGY
• METAL MECHANICS
• TOOLING & DESIGN
• MINING
• FOOD AND BEVERAGE
• MEDICAL TOURISM
• HOUSING
• FURNITURE
INDUSTRIAL SECTORS

16. • Baja California has almost 50 years of aeronautical
experience
• Largest concentration of aerospace companies in
México
• More than 82 companies established in the region,
representing 21% nationwide.
• 60% are AS9100 and/or Nadcap Certified
• Workforce of more than 28,000
• Includes: operators, technicians and engineers
• Design, assembly, manufacture & MRO
• Operating repair facilities in Baja California
approved by FAA
• New & expansion investment projects.
AEROSPACE
Source: Ministry of Economy 2013 Pro-Mexico

17. AEROSPACE
• The Baja High-Tech Aerospace Training Center
is a project already underway that will benefit
the whole sector with flexible and
comprehensive training programs an multiple
certifications available for trainees, with strong
links and supervision by the Aerospace
companies established in the region.

18. EMBLEMATIC AEROSPACE COMPANIES IN BAJA

19. • Baja California leads the medical device
industry in Mexico
• More than 66 established companies with
processes of design, assembly,
manufacture, sterilization, among others
• Workforce of 42,000 specialized employees
• Baja California's cluster together with San
Diego's on the U.S. integrates the most
sophisticated and diverse binational
medical device region in North America
MEDICAL DEVICES

20. MEDICAL DEVICES COMPANIES

21. • For more than 50 years Kenworth OEM
(Paccar Group) has been manufacturing
heavy trucks for a worldwide market
• Toyota Tacoma truck (OEM) is being fully
assembled in Baja California
• More than 80 automotive companies
established in Baja California
– 32 tier I and II companies
• High skilled employees
• Huge automotive after market suppliers
• Growing off-road business with more than
25 companies.
AUTOMOTIVE

22. AUTOMOTIVE COMPANIES

23. • First industry established in Baja California
• More than 200 companies operate in Baja
California manufacturing flat screen
televisions, cell phones, computers, home
appliances, among others
• All OEMs have changed to platforms like
LCD and DLP
• Workforce of more than 92,000 employees
ELECTRONICS

24. ELECTRONICS COMPANIES

25.  Mexicali Research and Technology Center
 Development of technologies for future commercial
aircrafts
 Considered as the first of its kind worldwide
 Generates more than 350 jobs; 75% is represented by
Mexican engineering talent
 Over 40 years of experience in semiconductor industry
 Enables mobile connectivity through semiconductor
innovation
 Provides assembly, test and finishing services for a wide
portfolio of semiconductors solutions
 Winners of the National Quality Award 2013
HIGH TECHNOLOGY,
RESEARCH AND DEVELOPMENT
BAJA CALIFORNIA HAS TWO OF THE MOST IMPORTANT FACILITIES IN THE WORLD

26. Mexicali EDC
• Private-Public Organization
Mayor’s office – Private Community
• Non- profit
• Established in 1977
Mexicali / Quick Facts
• State Capital
• 1 Million people (28% State total)
• 160 industries / 55,000 employees
RIVERSIDE
MEXICALI / MAIN ADVANTAGES

27. Infrastructure:
• Water: Main source is the Colorado River supplying 1,850 millions m3 per year to Mexicali.
• Gas: Provided by SEMPRA, all urban area covered.
• Energy: Cerro Prieto Geothermal Plant, (720 MW); INTERGEN (1165 MW); SEMPRA ENERGY (400 MW).
• Inventory Buildings and plenty of land available (flat land).
• 3 Points of entry. Cargo POE with 3,000 container/day capacity (50% used)
Education & Training:
• 12 Universities
• 48 Technical or Vocational Schools
• 7,000 Engineering students enrolled.
MEXICALI / MAIN ADVANTAGES

28. TIJUANA´S WORK FORCE PROFILE
Area People
Direct Employees 138,015
Technicians/Engine
ers
35,435
Management 13,055
Total 186,505
47%
26%
11%
6% 5% 4% 1%
“The ability of our Mexico workforce to
develop advanced processes apace with the
technological changes in our products while
maintaining top quality standards is
extraordinary…”3
- Ken Kannappan
President & CEO, Plantronics

29. 1. Arrive at San Diego airport.
2. Morning meeting
Downtown.
3. Drive to Tijuana for meetings
at Mexico’s ops site.
4. Cross border in to Mexico.
5. Arrive a Mx / operation’s
location.
6. Visit suppliers or partners
office/facility.
7. Lunch
8. Return to the border via
Sentri lane.
EXECUTIVE LOGISTICS

30. Tijuana’s Key Industrial Sectors
38,000 employees
41 companies
#1 in North
America
8,700 employees
35 companies
#1 in Mexico
48,000 employees
120 companies
+ 17 Million TV Yr.

31. STATE INCENTIVES
Up to 100% exemption on the payroll tax, for a 3 to 5 years period,
based on the project.
Becate Training Funds: Your Company will receive support for 2
minimum wages $70.10 MXP during training for a two month period
plus a $20.00 MXN for transportation per worker base on the National
Employment Service programs.
30% Water Discount on Consumption: For this incentive to take place,
the company must use an in-house water treatment plant to recycle
and reuse water within the facility, the 30% water discount goes on
your monthly bill.

32. Human Resources: The State will guarantee:
• Availability of talented workforce.
• A stable and union-free work environment.
• Full support in creating linkage programs with local, state, and
national universities, technical and vocational schools.
• Working together with the industry within Baja California, in
order to adapt the curricula to your industry needs.
• Assistance in recruiting personnel through the State Secretariat
of Labor in collaboration with the National Employment Service.
STATE INCENTIVES

33. Government Support: The State of Baja California guarantees:
• A fast-track process with all type of procedures in the three
Government levels.
• A fast-track process for construction permits and acquisition.
Supply Chain Development: The State will guarantee:
• Two annual events for supplier development programs.
• Organize workshops abroad for potential supplying companies
that might be interested in establishing operations in the region.
• A guaranteed incentive package for foreign and local suppliers.
STATE INCENTIVES

34. Innovation and R&D Funds (PEI): the State Government can help
companies apply for the CONACYT (Consejo Nacional de Ciencia y
Tecnología) funds, targeted to innovation and R&D projects.
These funds can cover from 22% and up to 75% of the total amount of
investment, but limits it to no more than $1,000,000 USD. The
incentive will be based on the individual project specification.
Supplier Incubation Programs and Facilities: Inside our Technology
Consortium building, we have spaces and high tech laboratories
available to develop new suppliers for the companies established in
Baja California. We can also provide an incubation process, which will
benefit your key suppliers or affiliate companies that wish to set up in
our state and we guarantee a smooth landing .
STATE INCENTIVES

35. Closest State to Asia
Closeness to North American Markets
Infrastructure & Communication development
Young, educated & service oriented population
Knowledge & technology transfer capabilities
Manufacturing flexibility
Pro-business environment & Clusters development
orientation
WHY

36. Welcome to
BAJA
CALIFORNIA
Baja California State Government
www.investinbaja.gob.mx