REYNOSA, Tamaulipas – McAllen Economic Development Corporation has assisted the State of Tamaulipas in bringing three new manufacturing operations to Reynosa, one from India, one from the United Kingdom, and one from Japan.
Ralph Garcia is vice president of McAllen EDC with special responsibility to bring to and retain business in Reynosa. He spoke about the projects at a recent MEDC board meeting.
“It is very positive news, especially in light of the union situation in other parts of Mexico. These projects have been in the making for the past few years.” Garcia said.
The Indian company coming to Reynosa is Indomin, a global resources company. Its new $25 million maquiladora, housed in the ProLogis industrial park, will be dedicated to the manufacture and assembly of metal products. It will generate 200 new jobs.
The British company is Aptiv, which spun out of the auto parts manufacturer Delphi. The company is investing more than $22 million in a maquiladora in the Villa Florida industrial park, More than 400 manufacturing jobs will be created.
The Japanese company expanding in Reynosa is Nidec, which makes electronic motors. The new investment is worth $25 million. During construction of the 126,000 square-foot maquiladora, 350 jobs will be created. Once operational, 400 jobs will be created for the manufacture of motors and controls for commercial and residential usage. The company already has 1,000 workers employed in Reynosa.
“We have been fortunate to work with the state government in Tamaulipas in getting the companies the incentives and the support they need, along with sorting out all the regulatory compliance issues,” Garcia said.
“We have been competing with other states in Mexico for these projects. In one case we were close to losing the project. I have to say the Governor’s office has been very helpful.”
Garcia said Reynosa’s qualified workforce, labor stability and competitive logistical advantages have led to a growth in investor confidence.
“We are excited about the three projects and we are excited about the growth taking place in Reynosa. One of our challenges is real estate and what is available in the market. We have some developers that are helping us by building some spec buildings,” Garcia added.
Reynosa Mayor Maki Ortiz Dominguez said her administration is helping create an environment for investment by improving infrastructure, such as paving more streets. Ortiz Domingue said $11 million pesos have been invested, which has spurred more retail stores as well as a new hotel.
In an interview with the Rio Grande Guardian, Ortiz Dominguez said the city of Reynosa is attractive to investors due to its highly-skilled labor pool and geographic location. Bordering the United States, she noted Reynosa has three international bridges.
Commenting on the arrival of the Indian and British manufacturing companies, Ortiz Dominguez said: “With these two maquilas, we will be generating 600 direct jobs in our city. This adds to 12 new convenience stores, eight new stores in the Aurrera chain and four with the Smart franchise.”
Ortiz Dominguez also spoke about new investment at Reynosa Airport. More than 4,000 square meters of commercial space is being developed, bringing new shops, restaurants, a hotel and even an industrial park dedicated to international freight.
Ortiz Dominguez said that currently, General Lucio Blanco airport has 2,608 square meters covered space. Once the new project is complete, possibly as early as next June, up to 7,538 square meters will be covered.
In the airport area there will not only be new facilities, she said, but also a commercial area with shops and restaurants covering 154,000 square meters, a hotel covering 10,143 square meters and an industrial park measuring 363,118 square meters.
Ortiz Dominguez predicted investments in and around the airport will lead to more prosperity on the eastern side of Reynosa. She noted that 1,600 new jobs will be created.