MexIcan autoMotIVe Industry Reigniting the Engines

VIII - 2011

aerospace INDUsTrY Rising to Maximum Height

Great investment opportunities in the best place to live

Morelos
M E X I C O
Strategic location for global business.
L Located only 50 miles south of Mexico City, by far the largest market d l il h f M i Ci in Latin America Straight in the middle of the inter-oceanic highway; 260 miles from the Seaport of Veracruz on the Gulf of Mexico

Highly qualified human capital

Hi hl skilled workforce Highly kill d kf Steady supply of engineering and science graduates

An outstanding innovation environment

Host to 39 research centers ready to support innovative projects like no other region in Mexico More than 1,500 scientists, many of whom are involved in highly relevant topics such as biotechnology, applied physics, energy & fuels, materials, science, water technology and others

Exceptional life quality

F Famous worldwide for its ideal climate and natural beauty Known as the city of eternal spring, Cuernavaca the state Capital and its surroundings have become a cosmopolitan metropolis A wide array of high quality entertainment, cultural and educational options

Economic Development Secretariat +52 (777) 313 5680 www.businessinmorelos.gob.mx business@morelos.gob.mx

2 Negocios

Contents

Rising to maximum height

From the CEO Briefs Business Tips mexico: light years of history in aerospace development Mexicos Partner daimler mastretta mazda metalsa dina geiq safran aernnova honeywell

6 7 10 18
20 22 24 26 32 34 37 38

14
PHOTO coUrtesy of ford

automotive industRy reigniting the engines

Photo courtesy of safran

28

Firm ground for growth.

e r r o oo rrre or Mex

From Mex: 01(800)025-5580 From USA: 1(877)542-9793 eoroom

A Master Planned Community

Mexico has everything to becoMe a key supplier for the worlds it Market:
Plenty of highly qualified professionals in the IT Industry. Mexico is the Americas Spanish-speaking country with the highest rating in human resources, according to the A.T. Kearney Global Services Location Index 2009. 23 IT clusters in 20 states. Over 60% of Mexican states have productive capacity in IT Business Monitor estimates that the IT services and BPOs market will grow 10% annually during the period 2009-2013, while the software market will grow 9% in the same period.

4 Negocios

PrOmxicO
carlos guzmn Bofill ceo ilse oehler grediaga image and communications director sebastin escalante managing coordinator sebastian.escalante@promexico.gob.mx miguel ngel samayoa advertising and suscriptions negocios@promexico.gob.mx natalia herrero copy editing

42
Photo archive

q-10 cOmunicacin
emma lucila lpez valtierra publisher sergio anaya editor in chief carlos molina design this is an editorial project for promxico by q-10 comunicacin.

mara del Pilar luna Underwater Time Travel

The lifestyle Contents

download the PdF version and read the interactive edition of Negocios ProMxico at: negocios.promexico.gob.mx

50
diana Kennedy A Brit with a Mexican Palate 46 Destination PinacaTe: a lunar landScaPe On THe greaT divide 54 Gastronomy emPelln: liTTle mexicO in new yOrk 58 Music SirenS Of THe lyrical landS 61 Architecture cineTeca naciOnal 62 Film Industry lOcaTiOn: mexicO

Negocios ProMxico es una publicacin gratuita, editada mensualmente en ingls por promxico, camino a santa teresa nmero 1679, colonia Jardines del pedregal, delegacin lvaro obregn, c.p. 01900, mxico, d.f., telfono 54477000, pgina web www. promexico.gob.mx; correo electrnico negocios@promexico.gob.mx editor responsable: gabriel sebastin escalante Bauelos. reserva de derechos al uso exclusivo no. 04-2009-012714564800-102. licitud de ttulo: 14459; licitud de contenido: 12032, ambos otorgados por la comisin calificadora de publicaciones y revistas ilustradas de la secretara de gobernacin. issn: 2007-1795. Negocios ProMxico ao 4, nmero viii, agosto 2011, se termin de imprimir el 18 de agosto de 2011, con un tiraje de 15,000 ejemplares. impresa por ca. impresora el Universal, s.a. de c.v. las opiniones expresadas por los autores no reflejan necesariamente la postura del editor de la publicacin. queda estrictamente prohibida la reproduccin total o parcial de los contenidos e imgenes de la publicacin, sin previa autorizacin de promxico. ProMxico is not responsible for inaccurate information or omissions that might exist in the information provided by the participant companies nor of their economic solvency. The institution might or might not agree with an authors statements; therefore the responsibility of each text falls on the writers, not on the institution, except when it states otherwise. Although this magazine verifies all the information printed on its pages, it will not accept responsibility derived from any omissions, inaccuracies or mistakes. August 2011.

Photo carlos citaln

ENERGY

OFFICES ABROAD
North America
Regional Director Washington, DC
jorge.lopez@promexico.gob.mx Offices in: Chicago, Dallas, Houston, Los Angeles, Miami, Montreal, New York, Toronto and Vancouver Chicago miguel.leaman@promexico.gob.mx Dallas diana.castaneda@promexico.gob.mx Houston carlos.marron@promexico.gob.mx Los Angeles mario.juarez@promexico.gob.mx Miami cesar.bueno@promexico.gob.mx Montreal alfonso.mojica@promexico.gob.mx New York gerardo.patino@promexico.gob.mx Toronto jose.peral@promexico.gob.mx Vancouver emilio.rivero@promexico.gob.mx Guatemala ignacio.elias@promexico.gob.mx Santiago de Chile joel.enriquez@promexico.gob.mx Sao Paulo juan.pintoribeiro@promexico.gob.mx Paris guillermo.garza@promexico.gob.mx Stockholm nicole.felix@promexico.gob.mx

Energetic Alliance

+ 52 (55) 544 77070 promexico@promexico.gob.mx www.promexico.gob.mx

ProMxico Headquarters

Asia - Pacific
Offices in: Beijing, Mumbai, Seoul, Shanghai, Singapore, Taipei and Tokyo Beijing ari.saks@promexico.gob.mx Mumbai aldo.ruiz@promexico.gob.mx Seoul miguel.delvillar@promexico.gob.mx Shanghai rodrigo.contreras@promexico.gob.mx Singapore / New Markets francisco.bautista@promexico.gob.mx Taipei cesar.fragozo@promexico.gob.mx Tokyo esau.garza@promexico.gob.mx

Europe and Middle East

Offices in: Brussels, Frankfurt, London, Madrid, Milan, Paris and Stockholm Brussels alejandro.saldivar@promexico.gob.mx Frankfurt erwin.feldhaus@promexico.gob.mx London - Middle East jose.neif@promexico.gob.mx Madrid ximena.caraza@promexico.gob.mx Milan oscar.camacho@promexico.gob.mx

Latin America and South America

Offices in: Bogot, Buenos Aires, Guatemala, Santiago de Chile and Sao Paulo Bogot carlos.edgar@promexico.gob.mx Buenos Aires daniela.robles@promexico.gob.mx

From the CEO.

ou might be unaware of this fact, but it is likely that your car was assembled or has components made in Mexico. Similarly, a plane in which you recently have flown most likely operates with equipment made in our country. In this months issue we will tell you about how Mexico has become a major player in the worlds automotive and aerospace industries. Mexico is among the worlds top ten car, truck and auto parts producers and is also the sixth vehicle exporter on the globe. Most of the worlds leading manufacturers operate in Mexico, due to our broad base of world class domestic suppliers. That has resulted in a robust environment for the automotive industry which has been the foundation for a flourishing aerospace sector. Mexico has become a preferred destination of Foreign Direct Investment (FDI) for aerospace businesses. Moreover, this sector has trebled in just five years, and there are currently 232 companies operating in Mexicos aerospace industry, with over 30,000 employees. The relevance of the automotive and aerospace industries in Mexico is very clear. Both sectors are important poles for FDI, create thousands of jobs and represent an important source of income for the country. Above all, these two sectors have interesting growth outlooks with promising investment and business opportunities. Welcome to Negocios! Carlos Guzmn CEO ProMxico

briefs.
autOMOtivE

honda and mexico

a productive partnership
Honda de Mxico, Hondas production and sales company in Mexico, will build an automobile plant for production of fuel-efficient subcompact vehicles for the Mexican and North American markets. At a cost of approximately 800 million usd, the new plant is scheduled to begin operations in 2014. Expected to employ approximately 3,200 associates at its full annual capacity of 200,000 units, the plant will occupy a 5.66 million square meter site in a suburb of Celaya, Guanajuato, about 210 miles east of the companys two existing plants in El Salto, Jalisco, where Honda currently builds automobiles, motorcycles and auto parts. The facility will be the eighth Honda auto plant in North America and its 10th auto assembly line and will boost Hondas capital investment in its North American operations to nearly 21 billion usd. Honda employs more than 33,000 associates in North America. Production operations related to automobiles include four auto plants, two auto engine production facilities and two transmission plants in the US, two auto plants and an auto engine plant in Canada and an auto plant in Mexico. The new Mexican facility will increase Hondas automobile production capacity in North America from the current 1.63 million units to 1.83 in 2014. The company will make a significant commitment to limit the environmental impact of its new plant in Mexico, which will employ advanced methods of energy and emission reduction with the goal to become a zero wasteto-landfill factory. Honda has already 10 zero waste-to-landfill plants in North America, with four more operating with virtually zero waste-to-landfill, including the two existing plants in Mexico. Honda de Mxico was established in September 1985 and began sales of motorcycle products in 1987. In March 1988, the company began producing motorcycle products and automobile service parts in El Salto, Jalisco. An adjacent auto manufacturing plant opened in 1995 with production of the Honda Accord, switching to production of the Honda CR-V in 2007. Hondas current annual auto production capacity in Mexico is 60,000 units. In 2010, sales of the Honda and Acura brand automobiles totaled approximately 40,000 units in the country an increase of 7% from the previous year.
www.honda.com

Photo courtesy of honda

8 Negocios briefs.

Photos archive

PharMaCEutiCal industry

Bound from Mexico to the US Market

After becoming the first Mexicandeveloped and manufactured medicine to be approved by the US Food and Drug Administration (FDA), Anascorp an anti venom produced in Mexico by Instituto Bioclon of Grupo Silanes will be sold in the US market for use in treating patients suffering from the effects of scorpion sting To that end, Instituto Bioclon will invest 20 million usd to build a new plant in Toluca, Estado de Mxico, dedicated to the manufacture of antidotes for scorpion, spider and snake bites.
www.bioclon.com.mx www.silanes.com.mx

autOMOtivE rEnEwablE EnErGy

Cannon Power Group to Harvest Wind in Mexico

Mexico Power Group, a subsidiary of Cannon Power Group, will invest 2.5 billion usd in a five-year period in three wind park projects that will generate a total of 1,500 MW on a surface area of more than 35,000 hectares, where approximately 700 air generators will be installed. The wind parks will be located in the cities of Tecate, Baja California; Zacatecas, Zacatecas; and Cozumel, Quintana Roo. The company will invest one billion usd in each of the first two projects, while the third wind park in Quintana Roo will require a 500 million usd investment. Combined, the three projects will create approximately 900 direct jobs. The wind farm in Baja California, known as Aubanel, will be located near the town of La Rumorosa, approximately 60 miles East of San Diego and 15 miles South of the US-Mexico. The Aubanel Wind Project is expected to be one of North Americas largest wind farms with potential capacity of 1,000 MW at various stages of development. The first phase of the project calls for the installation of 72 MW of wind turbines, supplied by Spanish Gamesa. Power produced from the first phase is expected to be sold to customers in Mexico, with subsequent project phases selling power to both Mexico and US customers. According to the companys estimates, production in its Mexican facilities during the first phase will reach 312 mega Watts (MW) of which 72 MW will be generated in Baja California, 180 MW in Zacatecas and 60 MW in Quintana Roo. This potential is equivalent to the power requirements of close to 100,000 homes in the three states.
www.mexicopowergroup.com

Born in Italy, Made in Mexico, Sold in China

Chryslers Toluca plant in Mexico will soon be shipping Fiat 500s to China. The plant, on which the automaker spent 550 million usd, is poised to produce 120,000 vehicles a year; half are earmarked for the US market and the other half will be sent to Brazil and China. Sales in China are expected to begin on September 2011. Anticipating the official launch of the standard 500 in the Chinese market, the automaker unveiled the Fiat 500 First Edition at Shanghai, a special version and limited to 100 units. This edition of the small city-car displays several custom graphics on its sides, created by five Chinese designers Leilei, Mee Wong, Benny Luk, Yan Wei and Nod Young, to represent the link between Italy and the Asian country. The Fiat 500 First Edition is produced in Toluca, Mexico.
www.fiat.com

briefs.
MEtallurGiCal industry

Steel Bet on Mexico

The Japan-based corporation Mitsui & Co. will build a steelprocessing plant in Mexico together with leading US electric furnace steelmaker Nucor Corp. as steel demand soars in that market. Steel Technologies, a 50-50 steel-processing joint venture in the US between Mitsui and Nucor, will construct the new facility in Monterrey, Nuevo Len. Built at a cost of almost 78 million usd and scheduled to come online at the end of 2012, the factory will feature cutting machines for steel sheets and state-of-theart equipment for surface treatments. It will be able to process 800,000 tons of steel a year. The joint venture will seek to supply top Japanese electronics makers and automakers operating in Mexico, such as Toyota, Nissan and Honda.

autOMOtivE

A Platform for Global Automotive Businesses

The Tlaxcala 2011 Automotive Forum will take place on September 1 and 2, 2011, at Tlaxcalas Convention Center, to promote automotive businesses interested in developing suppliers, selling input or transferring operations to the central Mexican state. Key note conferences to discuss the advantages Tlaxcala offers to the consolidation of an automotive cluster, have been programmed. Additionally, business meetings among Mexican and international companies will be held to consolidate strategic alliances. Tlaxcala 2011 Automotive Forum will also support the creation of small and medium businesses to supply large assembly companies and, in turn, drive the creation of jobs.
foroautomotriztlaxcala.mx

www.mitsui.com www.nucor.com

infrastruCturE

Building a New Mexican Port

Stevedoring Services of America (SSA), won a 20-year concession to develop and operate a dock for containers and general cargo in the port of Tuxpan, Veracruz on the Gulf of Mexico. Construction of the 300 million usd port from where containers, steel and cars will be shipped to Europe, the US and South America will begin by the end of 2011. The new port will start operations by 2013 and it will be connected to a new highway being built by Mexican construction company ICA to give it access to central Mexico. SSA already operates five container and cruise ports in Mexico on both the Gulf of Mexico and the Pacific coast: Acapulco, Cozumel, Manzanillo, Progreso and Veracruz.
www.ssamarine.com

10 Negocios

illustRation oldemar

Mexico Light Years of historY in aerospace deveLopment

from the first mexican satellites pUt into orBit in the mid 1980s to the creation of the mexican space agency in 2010, mexico has set Up the conditions for the development of an aerospace indUstry, via scientific research programs, technological innovation and highly-qUalified hUman resoUrces.
by mara cristina rosas*

n 1968, as Mexico was preparing to host the 19th Olympic Games, the country was launched into the satellite era on the wings of NASAs ATS-3, which enabled it to capture Intelsat III and IV signals. That same year, a satellite station was developed in Tulancingo, Hidalgo, while Mexicos participation in the Intelsat consortium made it possible to transmit the 1968 Olympic Games and the 1970 World Cup to audiences worldwide. The earth stations that were set up at this time would serve as basic infrastructure for the development of the countrys own satellite system later on in the 1980s. In the mid-1980s, Mexicos agreement with Intelsat expired and it acquired its own satellite system. The putting into orbit of the Morelos I and Morelos II satellites on June 17 and December 17, 1985, respectively, became a landmark in the development of the countrys satellite capabilities, although the latter didnt come into operation until 1989. The Morelos satellites were followed

by the Solidaridad system. Solidaridad I was launched on November 13, 1993 to replace Morelos I. Like the first generation of Mexican satellites, the Solidaridad ones were built by the US firm Hughes Aircraft Co. (today Boeing Satellite Systems International). Solidaridad II was launched into space shortly afterwards in 1994. Solidaridad II operates on an inclined orbit, which will help prolong its useful lifespan until 2013. This satellite is used exclusively for national security purposes. The following generation of satellites was produced by Satlites Mexicanos (Satmex). Satmex V was put into orbit on December 1998, while Satmex VI was launched in 2006. Initially, Mexico purchased satellites from foreign manufacturers and gained wide experience in this area, but the efforts of academic institutions like the National Autonomous University of Mexico (UNAM, for its acronym in Spanish) and the Autonomous University of Puebla (BuAP, for its acronym in Spanish) also deserve to be mentioned. These institutions,

together with research centers throughout the country, were pioneers in the development of Mexican satellites and are among the few academic bodies engaged in such programs worldwide. Their focus is on small or microsatellites weighing between three and 50 kilos. Designed and manufactured to perform tasks and missions formerly reserved for their larger predecessors, these lightweight versions are cheaper to put into orbit if we consider that it costs 10,000 usd to put one kilo of material into space, plus 85 kilos of fuel. In 1945, the UNAM put together a team of researchers from the Physics and Geophysics institutes. Their activities were formalized in 1962 with the creation of the Department of Outer Space at the Geophysics Institute, which coincided with the setting up of the National Commission for Outer Space at the initiative of the Mexican government. For 14 years, this commission was entrusted with coordinating and promoting Mexicos space activities. The Department of Outer Space was renamed the Department of Space Studies

buSineSS TiPS

in 1976. However, it wasnt until 1985, when the Morelos satellites were launched, that the Space Activities Interdisciplinary Group (GIAE) was established. The government subsequently began to take a greater interest in the development of satellites and the University Space Research and Development Program (PUIDE) was created in 1990. Five years of work went into the UNAMSAT-1 project. The goal was to build a satellite capable of collecting data on meteorite paths to determine whether or not they were on collision courses with Earths atmosphere. This was the first 100% Mexican-made satellite, which benefited from the work of radio operators. The satellite weighed 10 kilos, had a volume of 10 cubic liters and was shaped like a 23-centimeter cube with quadrangular modules. Its computer was equipped with a microprocessor and was powered by a combination of batteries and solar cells. The UNAMSAT-1 satellite would have had a useful life of four-and-a-half years had it not been for a failure with the Star rocket that was to put it

into orbit: during the fifth stage of launch, the Russian-made rocket exploded and the tiny satellite disintegrated. UNAMSAT-2 was built parallel to UNAMSAT-1 as a twin satellite that would remain on earth to simulate the latters orbit. It wasnt scheduled for completion until 1995, but after the failed launch of UNAMSAT-1, its twin was put into orbit as UNAMSAT-B. The launch was negotiated with the help of the Moscow Aeronautics Institute (MAI) and took place on September 5, 1996, at the Plesetsk launch complex. Five hours after liftoff, UNAMSAT-B successfully separated and reached an altitude of 1,000 kilometers and an orbit inclination of 83 from the equator. It began transmitting to the portable station set up in Plesetsk at 11:00 p.m. UNAMSAT-III whose creators claim it can predict earthquakes up to five days before they occur is scheduled for launch in 2011. Another project in which several of the countrys academic institutes have participated is the Experimental Satellite Program (SATEX) for the development of a family of

the satellite technology developed By mexico is now in demand By other coUntries. for example, vietnam, which plans to laUnch its second satellite in 2012, called on the technological expertise of the Unam, whose scientists have developed sensors and processors to improve the orientation of space satellites.

12 Negocios

illustRation oldemar

small, low-cost experimental satellites. Set up under the auspices of the Mexican Communications Institute, the UNAM and the BUAP are just two of the academic entities participating in this program along with the National Polytechnic Institute (IPN, for its acronym in Spanish), the Ensenada Scientific Research and Higher Education Center (CICESE, for its acronym in Ssipanish) and the Guanajuato Mathematics Research Center. Weighing in at 50 kilos, SATEX I will take satellite photos of Mexico, conduct laser beam tests to establish communication links and high-frequency band research, among other tasks. The satellite technology developed by Mexico is now in demand by other countries. For example, Vietnam, which plans to launch its second satellite in 2012, called on the technological expertise of the UNAM, whose scientists have developed sensors and processors to improve the orientation of space satellites. These components are part of a complex electronic system that

stabilizes and situates small satellites in orbit. By reducing the mass, and therefore the cost of experimental satellites that are so vital to the development of space technology, these innovations constitute a breakthrough for Mexicos fledgling space technology industry. The Vietnamese Space Technology Institute has since entered into an agreement with the UNAM to support and promote research in this area in Vietnam. In 2000, a National Forestry Inventory was compiled using satellite imaging technology. The Mexican Navy, the Mexico City Government and the National Commission for Natural Protected Areas have also employed this technology to obtain real-time diagnoses of the state of countrys forests. One of its more concrete applications has been to assist in the preservation of the Monarch butterfly sanctuary, which has been monitored since 1999 using high-resolution photographs taken by the satellites designed by the UNAM. And while the space race is indubitably dominated by a handful of countries, its in-

terests are international, particularly when it comes to the building of parts. Mexico manufactures components for space vehicles and is the main receptor of investment in the manufacturing of aerospace products worldwide. Between 1990 and 2009, the country was the sixth largest receptor of new investment in space research and development. Some believe the day when Mexico has the capacity to build complete space vehicles isnt far off. The 200-odd companies operating in the sector most of them foreign currently employ some 30,000 people, but we could see rapid progress from primary assembly to the manufacturing of major technology. The issue is high on Mexicos agenda. On July 30, 2010, a decree establishing the Mexican Space Agency was published in the Official Gazette. It is hoped that this agency will help lay the groundwork for a policy to coordinate the diverse activities currently being conducted in isolation by government agencies, academic institutes and private organizations in the aeronautical, space, telecommunica-

buSineSS TiPS

tions, information and communications technologies among other related sectors. In 2010, Mexico hosted several multilateral forums related to the space agenda, including the Plenipotentiary Conference of the International Telecommunications Union (ITU), held in Guadalajara, Jalisco, on November 4 - 22, and the Sixth Space Conference of the Americas, held in Pachuca, Hidalgo, on November 15 -19 both major global events. The governments active presence at such forums is thought to have had sway in the decision to elect Mexico to preside over the governing board of the General Secretariat of the Regional Center for Education in Space Science and Technology for Latin America and the Caribbean (CRECTEALC) a duty that was transferred to Brazil in August 2010. The Mexican Space Agency will collaborate on security issues, help safeguard the countrys sovereignty and promote the education of scientists specialized in the development of satellite systems that employ homegrown infrastructure and technologies.

According to the Mexican government, the creation of this agency opens up opportunities to foster regional and national leadership via scientific research programs, technological innovation strategies and policies for the development of an aerospace industry and the education of highly-qualified human resources. It will also generate investment and encourage the creation of highly-skilled jobs, ensuring that Mexico remains an attractive option in a sector that is strategic to the development and progress of our nations. n

in 2000, a national forestry inventory was compiled Using satellite imaging technology. the mexican navy, the mexico city government and the national commission for natUral protected areas have also employed this technology to oBtain realtime diagnoses of the state of coUntrys forests.

*Professor and researcher in the Political and Social Sciences Faculty, National Autonomous University of Mexico (UNAM).

14 Negocios

Photos archive

reigniting the engines

mexico has estaBlished itself as an attractive destination for aUtomotive sector investment. the worlds largest aUto companies have placed their faith in the prodUction platform that mexico provides for manUfactUring vehicles to Be sold in a variety of markets aroUnd the world. today mexican manUfactUred vehicles are among those with the largest volUme of sales for their respective Brands.

lobally, the automotive industry is an engine of development. It plays a strategic role in national economies not only because it is an important source of investment and employment but also because it fosters the development of other high value added sectors. Mexico is a clear example. Historically, the automotive industry has been a strategic sector for Mexicos development. On the basis of the jobs it creates and the foreign exchange it generates, its share of the national economy makes it the second largest industry in Mexico, surpassed only by the oil industry. In addition, this industry has paved the way for competitiveness in regions where automotive companies have been established. This in turn has led to more highly skilled and highly paid jobs among other results and to greater development of human capital. By the same token, the industry has created a major cascade of technical capabilities that are being applied in other sectors, such as electricity, electronics and aerospace. Mexico provides automotive companies with tremendous business opportunities. This is due to the strength of a unique market that has transformed into one of the centers of the global automotive industry. In the global automotive sector, Mexico has become an export platform. The largest companies in the world are increasingly utilizing Mexico as the sole supplier of some of their newest products. Al-

though the industry has been affected by the economic crisis, its resilience has enabled it to weather the economic downturn. Thus, Mexico has managed to forge ahead and become a strong player in the global market. In the past fifteen years, foreign companies in Mexico have established a number of assembly plants. The competitive advantage of vehicles and engines manufactured in Mexico stems from low labor costs and technological innovation. Furthermore, Mexico offers important tax benefits to multinational automotive companies seeking to establish assembly plants in the country . In recent years, this has led major manufacturers to strengthen their presence in Mexico, solidifying the countrys status as a center of automotive production. These major market players have also invested in compact and subcompact vehicles, relying on the fact that Mexico offers one of the best platforms to meet the growing export demand for smaller cars by consumers worldwide. Seven of the worlds largest manufacturers have chosen Mexico as their production center and export platform, some of which have been operating in the country for more than eight decades. Only three American manufacturers, GM, Ford, and Chrysler, the leading German carmaker Volkswagen, and major Japanese companies such as Nissan, Honda, and Toyota operate assembly plants in Mexico, and together produce 40 car models in the country. In 2008 alone, companies like GM, Ford and VW announced

investments totally more than 7 billion USD for the manufacture of entire vehicles and engines and transmissions, among other parts. The role of the automotive industry in the Mexican economy is critical, given the impact it has on other core industries such as steel, glass, and rubber. It is regarded as an industry that substantially impacts the countrys economic welfare. With an output of more than 58 million units in 2010, Mexico reaffirmed its position as the ninth largest producer of vehicles worldwide. The automotive industry is the secondmost strategic sector of the Mexican economy after the oil industry and the most important subsector of the manufacturing industry. Foreign sales continue to be the primary focus of vehicle production in Mexico. Given the geographic proximity and economic and business links between Mexico and the US, 81% of Mexican automobile production is intended for export, with 80% of the manufactured vehicles going to the US 11 out of every 100 vehicles sold in the US are made in Mexico, 11% to Latin America and 9% to the European Union. A majority of the main North American, European and to a lesser degree Asian (primarily Japanese and Korean) auto parts companies have established operations in Mexico. There are about one thousand auto parts companies in Mexico, of which 70% are foreign owned and 30% are domestically owned. Of all companies in this sector, 34.5%

SPecial feaTure mexican aUtomotive indUstry

are first tier manufacturers (direct suppliers to the finished goods industry). These companies offer faster and more streamlined supply for these systems, and adjust to the quality needs established by the assembly plants. The remaining companies manufacture inputs and raw materials supplies at the second and third tiers of the production chain. Owing to new production systems implemented by the finished goods industry to increase its productivity, some of which require just-in-time delivery of parts directly to the plant site assembling that part of the vehicle, first-tier suppliers have a close relationship with auto manufacturers and take on more responsibility in the manufacturing process of the final product. Thus, the finished goods industry is increasingly becoming what could be considered a subcontractor of supplier companies that are directly involved in the production process, since the suppliers integrate systems (and not just parts) directly in the production line. The most dynamic export activity is evident in products such as harnesses, seats, gasoline motors, body parts, security modules for airbag systems, and seatbelts, a part for which Mexican industrial production is very competitive globally. n

16 Negocios

inFogRaPhic oldemar

Automotive Industry at a Glance

In 2010, the Mexican automotive industry exported billion USD

57.62

Mexico is ranked 6th among the worlds top automotive exporters...

(including cars, buses, trucks and autoparts).

2007

1,613

2006

1,537

Exports of light vehicles

(millions of units)
2005

1,186

Production of light vehicles

millions of units

2005

2006

2007

1.6

2.0

2.0

Foreign Direct Investmen in Mexican automotive industry

(millions of USD)

2,176

1,510

1,974

SPecial feaTure mexican aUtomotive indUstry

... And is the worlds 9th largest car manufacturer.

82.3% of its automotive

Mexico exports

production: in 2010 Mexico produced 2.26, of them, 1.86 million were exported.

18 of the worlds most important Original Equipment Manufacturers (OEM) have manufacturing facilities in Mexico.

More than 300 Tier 1 suppliers operate in the Mexican autoparts industry.

2010

1,859
2008

1,661
2009

1,223

2008

2010 2009

2011*

2012*

2.1

1.5

2.2

2.3

2.4

1,106
*Estimated volume.

1,207

683
Sources: BBVA with data from INEGI and PricewaterhouseCoopers Mexico/AMIA/ ProMxico.

18 Negocios

Photos courtesy of grupo daimler

daimLer innovation and diveRsity

With more than two decades of presence in Mexico, Daimler has earned a leading position in the domestic automotive market, thanks to its constant innovation and the diversity of its products and services.

ecently, Mexico Citys government unveiled plans to transfer all public transport within the metropolis over to alternative drive systems, such as gas, biogas or electrically powered systems within the next few years. As part of that strategy, the city has decided to use trucks running on natural gas or biomethane for its waste-disposal services. Mexico Citys government is planning to use the Econic model from German automaker Daimler to move refuse out of its urban zone. With a 12-ton cargo capacity, the Econic delivers 50% less noise than a conventional truck and when used with natural gas is 40% cheaper than a diesel unit and up to 90% cheaper with biogas. In addition, it emits 20% less carbon dioxide. The eco-friendly truck, marketed under the Mercedes-Benz seal, is the result of Daimlers commitment to quality and innovation, a commitment that has taken the company to a leading position in the Mexican automotive sector. Daimler is the worlds fifth largest automotive company, with more than 380,000 em-

ployees worldwide. Daimler markets some of the best known and respected brands and is the largest commercial vehicle manufacturer in the world. Grupo Daimler is Daimler AGs subsidiary in Mexico. Daimler has been present in Mexico for more than 20 years and today it employs more than 5,000 people across the country. The company manages three business units: Daimler Vehculos Comerciales Mxico, Daimler Financial Services and Mercedes-Benz Mxico. Daimler Vehculos Comerciales, has an outstanding position in terms of sales in Mexico and has always innovated in the market for passenger and cargo vehicles. This business unit has three manufacturing facilities in the country. One, located in Santiago Tianguistenco, Estado de Mxico, produces Freightlinerbranded heavy and medium-duty trucks for domestic Mexico sales, as well as for export to Latin America, the US and Canada. A second plant, located in Saltillo, Coahuila, manufactures Freightliners Cascadia heavy-duty Class 8 truck. This facility can produce up to 30,000 Cascadia trucks annually for sale in the US, Canadian, and Mexican

markets. In the first quarter of 2011, Daimlers plants in Estado de Mxico and Coahuila produced 17,866 units. In Garca, Nuevo Len, a third Daimler facility assembles buses and Mercedes-Benz chassis. In the first quarter of 2011, Daimlers plant in Nuevo Len produced 947 buses. The plant, which began operating in 1994, has approximately 350 employees. In recent years, Daimler has gradually shifted part of its production from the US to Mexico and now accounts for over 50% of the commercial vehicle market, according to data from the National Association of Bus, Truck and Tractor Producers (ANPACT, for its acronym in Spanish). The company holds 26.9% of the NAFTA market for Class 5-8 commercial vehicles (7.3 tonnes and more ). The Daimler Garca plant has gotten better and better over the last 15 years. Its history actually began in 1993, when Daimler-Benz launched a partnership with the Brazilian bus-body manufacturer CAIO and began assembling urban buses. The frontengine bus chassis were built by Mercedes at its So Bernardo do Campo plant, the bus

mexicOS ParTner enersave mexicOS ParTner daimler

bodies by CAIO. Soon after the partnership was launched, the Monterrey plant went into operation and began assembling buses with rear-mounted engines. In 1998, the plant officially took over the bus chassis operations previously carried out by the Santiago Tianguistenco plant, producing its first chassis in 1999. Truck assembly operations were subsequently launched as well, and in 2000 the facility established a joint venture with Marcopolo. Daimler invested around 80 million usd in its Nuevo Len plant between 1993 and 2009. Investment in 2007 and 2008 totaled approximately 1.6 million usd. The Nuevo Len facility participates in a development network with Mercedes-Benz sister plants in Brazil and Germany. Among other things, high-altitude tests for various types of commercial vehicles are carried out in Mexico. In the first quarter of 2011, Daimler manufacturing facilities in Mexico had an output of 18,813 units, which represent a 49.7% share of the Mexican market for heavy vehicles in that period. Aside from its assembling plants, Daimler Vehculos Comerciales also has an interna-

tional distribution center of autoparts in San Luis Potos, where the company manages a catalogue of more than 95,000 parts.

in recent years, daimler has gradUally shifted part of its prodUction from the Us to mexico and now accoUnts for over 50% of the commercial vehicle market, according to data from the national association of BUs, trUck and tractor prodUcers (anpact, for its acronym in spanish).

Mercedes-Benz Mexico is responsible for importing and marketing a wide range of cars of the brands Maybach, Mercedes-Benz, AMG and Smart. The brand of the star remains the most aspirational premium car segment and the number one in customer satisfaction. In May 2011, Mercedes-Benz celebrated a milestone in Mexico. At the end of that month, Mercedes-Benz Mexico reported an increase of 74.5% in sales over the same period in 2010, achieving sales of 930 units, Mercedes-Benz 531, 101 298 Smart and Mercedes-Benz vans.
www.daimler.com.mx

20 Negocios

Photos courtesy of mastretta

the mastretta mxt

speeds to the top of its cLass

This high-performance Mexican-made sports car holds its own with the big boys. Serial production begins this year, so keep a look out for it in the fast lane.
ith a top speed of 230 kilometers an hour, the Mastretta MXT is leaving its competitors behind, proving that Mexico has both the capacity and the ability to design, manufacture and market high-performance sports cars for the international market. Luxury, comfort, functionality and style make this coup a pleasure to drive. First presented in 2008 at the British International Motor Show in London, it wasnt until 2011 that serial production of the MXT actually got underway. The first units have barely rolled off the

assembly line but half of this years production 100 cars is already spoken for and plans are afoot to scale annual output up to 500 units over the next five years. Innovation and quality are the drivers of Mastrettas success. There is simply no other coup like it on the market: its easy on the eyes, weighs just 930 kilos, has a 250 horsepower (HP) engine and can reach 100 kilometers an hour in less than five seconds. In terms of features, it can be compared to a prestigious British-made sports car, the Lotus Elise 1.8 R; except that, at 56,000 usd, the Mastretta has a performance/price ratio thats hard to match. This may be the first high-per-

formance sports car designed and produced from start to finish in Mexico but as the worlds eighth leading vehicle assembler, no one can say the country lacks experience in putting these things together According to industrial designer Daniel Mastretta, who, along with his brother Carlos, a skilled business administrator, owns Mastretta Cars and the MXT patent, it was a passion for cars and the technical know how of Mexicans that gave rise to the concept. It all began in 1987, when the Mastretta brothers founded Tecnoidea (which spawned Mastretta Cars), that consisted of an office and

SPecial feaTure mexican shoe indUstry mexicOS ParTner mastretta

The suspension offers exceptional grip and Mexico has highly-skilled people in all these a small manufacturing plant manned by five employees. The companys main line of busi- traction and is complemented by a 2.3-liter in- areas and in related processes, including the ness is consulting services to help car manu- line-four engine with 250 hp and turbocharg- assembly of this type of car, which is much facturers improve the efficiency and economy er, plus 257 pound-feet of torque. The engine cheaper in Mexico than in other countries of their production processes and the develop- is in front of the rear wheels, connected to a that have specialized in this niche. Carlos Mastretta has said in several interment of new products, like bodies for trucks, manual five-speed MTX-75 gearbox. The MXT was designed and built around views that the launch of the MXT will position from the design to the production stage. Tecnoidea has designed more than 25 bus its interior, which has two side-by-side seats Mexico not just as a manufacturer but also as models based on a process that begins with a that were positioned as low as the chassis a developer of high-performance sports cars. The MXT will be sold in Mexico at auto hand drawing, followed by digitalized sketches would permit to optimize the sports car expeshows and on the Internet and potential buyers and mock-ups. At the request of its customers, rience. will be targeted by using direct marthe company soon began designing repliketing strategies. Foreign sales will be cas of sports cars like the Porsche Speedthere is simply no other coUp like it on handled by dealers specializing in highster. Creating a car of its own seemed the market: its easy on the eyes, weighs performance sports cars. a natural progression for the company, JUst 930 kilos, has a 250 hp engine and can Mastretta already has a distribusays Daniel Mastretta. In 1996, the MXA, reach 100 kilometers an hoUr in less than tor lined up in the UK the MTX will a sports car mounted on a Volkswagen five seconds. be adapted to right hand drive for this chassis, was unveiled. Only 15 years sepamarket and another in France, which rate the MXA and the MXT but their Each component is made to measure. This will begin marketing it in Europe in the last design and technology are light years apart. Mastretta Cars describes the MXT as a is a car that combines advanced technology quarter of 2011. Germany, Italy, Denmark, Chihigh-performance vehicle that combines func- and the artisans eye for detail; innovation na and Russia are next on the list, with Brazil being targeted in the medium term. tionality with the agility of a sports car. Featur- and in-depth knowledge of the industry. Carlos Mastretta believes the MXT has what Designing and producing a vehicle of this ing an extruded aluminum chassis and carbon- and glass-fiber reinforced plastics that are caliber required industrial expertise to get its it takes to conquer the elite world of luxury sports extremely resistant yet lightweight, the MXT is weight down and to produce certain parts, cars. Its certainly off to a speedy start! n more fuel efficient and environmentally friend- as well as engineering know how to improve production line efficiency. It so happens that www.mastrettacars.com ly than others in its class.

22 Negocios

Photos courtesy of mazda

mazda, from 0.6 to 3.2% in six Years

The Japanese car manufacturer plans to invest half a million usd in a plant that will be producing 140,000 vehicles a year for export to Central and South America by 2013.
by antonio vzqUez
n just six years, Mazda has garnered favor on the domestic market. The Japanese car manufacturer now ranks eighth among the 34 automotive firms vying for consumers business. Having started out with a market share of 0.6%, as of June 2011, Mazda has upped that figure to 3.2%. We deem Mazdas results in Mexico satisfactory. We are ranked eighth out of the 34 companies operating in the sector. We started out with just five dealerships and now have 31 throughout the country, thanks to the teamwork and ongoing efforts of the business chain, haulage contractors, publicists and everyone else who forms part of the value chain that has been key to our success, says Mazda marketing director for Mexico, Miguel Barbeyto. Satisfactory may be an understatement because it is on the basis of these results that Mazda has decided to build a manufacturing facility in Salamanca, in the central-western state of Guanajuato. The facility is expected produce up to 140,000 vehicles a year by 2013. According to Barbeyto, construction began more than a month ago on a plant in Mexico to start exporting to Central and South America and to supply local dealerships. The brands performance was one of the reasons corporate management decided to include Mexico as a production point. Had it not been for these results, Mazda would have never set its sights on Mexico but having seen the num-

bers, the decision was made and the new facility will supply the Latin American market and export to the US in the medium term. Mazda plans to channel some 500 million usd into the construction of the new facility, which will employ over 3,000 people once it is up and running. The plant will produce Mazda 2 and Mazda 3 models, as well as engines for the firms various automobile lines. The project is quite ambitious. The Mazda facility is key to Mexico and that is good news, not just for the country but also for those of us who work here because it means the company is expanding, says Barbeyto. Mazda will have a 70% stake in the Mexican plant its first manufacturing facility outside Asia, where it has three factories in China and Thailand and the remaining 30% will be managed by Sumitomo Bank, one of the companys main financial partners. There are several variables that make Mexico a good option for Mazda, says Barbeyto. Mexican labor is excellent, duties are favorable and, geographically, we are positioned between the US and South America. Looking forward, the Mexican plant will focus on supplying Brazil. Mazda doesnt currently have representation there, which is why that is included in the companys expansion plans. Brazil is the worlds fourth largest consumer of automobiles. In 2010, some 3.5 million vehicles were sold there, compared to 824,000 in Mexico.

cuSTOmer SaTiSfacTiOn
In 2011, the Mazda 2, a young, sporty, subcompact car, was launched on the Mexican market. The Mazda 2 competes on the highly contested market for subcompact vehicles, which attracts 32% of Mexican consumers, mainly young, trendy consumers aged between 18 and 24 who are looking to purchase their first car. This is a vehicle that is easy to handle and that has all the punch and attributes of a sports car without skimping on safety, says Barbeyto. Peace of mind comes with standard safety features that include antilock brakes,

mexicOS ParTner mazda

in 2010, mazda SOld 25,000 uniTS in mexicO and aimS TO imPrOve On THiS in 2011, given THaT THe dOmeSTic markeT fOr auTOmObileS iS grOwing aT an average raTe Of 11% annually.

advanced front airbags and a Triple H body construction, with side and horizontal steel bars for extra protection in the event of a collision. Barbeyto believes the Mazda product is fundamental to customer loyalty. We grew up with the new generation of Mazda products, well thought out designs and technology that makes these vehicles fun to drive precision suspension, a highly responsive transmission and a sporty design. He also believes after-sales support to be vital to securing customer loyalty. Another

key factor is that we keep our processes simple, because we put ourselves in the customers shoes, he says. Like the rest of the world, Mexico was hit by the global economic recession but Mazda was able to weather the bleak international panorama by negotiating price adjustments with its dealers, while remaining competitive. The success of the strategy was reflected in its market share, which rose to 2.5% in 2008 and 2009. In 2010, Mazda sold 25,000 units in Mexico and aims to improve on that in 2011, given

that the domestic market for automobiles is growing at an average rate of 11% annually. There are lots of major brands on the Mexican market, all offering prestigious products and good services. We take a look at what the competition is doing and try to offer what they dont in order to differentiate ourselves. Our customers remain loyal because of the product, after-sales support and excellent standard of service we offer, sums up Miguel Barbeyto. n
www.mazda.com www.mazdamexico.com.mx

24 Negocios

Photo courtesy of metalsa

metaLsa

Half a Century of shaping the Automotive industry

Metalsa is one of Mexicos top auto part producers, with 50 years experience on the international market.
by antonio vzqUez

mexicOS ParTner metalsa

the company has Been so sUccessfUl over the last five decades that it now sUpplies the international market and Boasts manUfactUring facilities, offices and technology centers at strategic locations aroUnd the world.

or the last half century, Metalsa, a fully Mexican-owned company, has been supplying structural components for light and commercial vehicles. Specializing in chassis and suspension structures, engine supports and the stamping and assembly of structures and fuel tanks for automobiles and trucks, the company also manufactures side rails, cross members and chassis for heavy trucks and buses. Metalsa was founded in 1956 and is today part of the Proeza Group. The company has been so successful over the last five decades that it now supplies the international market and boasts manufacturing facilities, offices and technology centers at strategic locations around the world, enabling it to respond quickly and efficiently to the needs of its clients. Metalsa has a presence in Germany, Argentina, Australia, Brazil, the US, India, Japan, Mexico, the UK and Venezuela and employs some 6,300 people worldwide. Last year saw the opening of industrial facilities in Jamshedpur, India, for the production of side rails for medium and heavy trucks, although the company set up commercial offices there back in March 2008. The new facility has created 300 direct jobs and currently manufactures 180 Metalsa-brand side rails a year. Comprehensive manufacturing capabilities such as resistance welding, laser, plasma and mechanical cutting, robot piercing, e-coating and other high-tech processes employed at the Jamshedpur facility have attracted companies like Tata Motors and Mahindra Navistar, who now feature among Metalsas main customers. In 2009, Metalsa bolstered its operations with the acquisition of Dana Holding Corporations structural products business for 150 million usd. Its Apodaca facility in the northern Mexican state of Nuevo Len has the capacity to produce an impressive 200,000 Toyota auto structures and as many as 50,000 chassis a year.

According to figures published by the Ministry of Economy, total output by Mexicos automotive industry was valued at 60 billion usd in 2010, which translates into annual growth of 45%. Metalsas clients include Autocar, Blue Bird, Chrysler-Fiat, Freightliner, Ford, General Motors, Hino, Iveco, Kamaz Mahindra, Mazda, Mercedes-Benz, Navistar, Nissan-Renault, Oshkosh, Paccar, Pierce, Scania, Tata, Terex Advance Mixer, Thomas, Toyota, Volkswagen and Volvo. What sets the company apart from its competitors is the full range of services it offers, from after sales support to the design and manufacturing of products, including prototypes and virtual and physical validation tests, all conducted under stringent quality control standards. Virtual design optimization and testing tools are vital to product innovation at Metalsa. Once the design has been approved by the customer, life-sized physical prototypes are manufactured using state-of-the art technologies like rapid or stereolithography prototyping to build so-called soft components. Over the years, Metalsa has perfected its Innovation and Technology Management Model. Applauded by customers and the Mexican government alike, the model won the 2005 National Technology Award, the most prestigious in its category. Metalsas reputation for meeting quickly and effectively the needs of its customers can be attributed to its corporate culture, which is based on the premise that only people with quality perspectives can create quality products and render quality services. As such, its most prized, if not its most valuable asset, are its employees, whose growth is fostered on both a professional and personal level. At Metalsa, quality isnt just a work model; its a way of life. n
www.metalsa.com.mx

26 Negocios

Photos courtesy of dina

Dina, the Return of aWarrior

With 60 years of experience, Dina is a living example of innovation in the Mexican automotive industry.
by antonio vzqUez

mexicOS ParTner dina

even dUring the time it was aBsent from the marketplace and in 2008 and 2009, when the gloBal recession was at its peak, it was one of the few companies to post growth, increasing its share of the domestic market from 1 to 2.5%. today, dina Boasts a 5% share of the mexican market.

Dina trucks are warriors, built to take on road conditions in Latin American countries, says Vctor Pliego Aguilar, export director of the passenger vehicles and heavy trucks that this Mexican company has been producing for over 60 years. Dina (Diesel Nacional) began life in 1951 as a public sector company. Back then, the company had an agreement with Fiat of Italy for technical assistance in the manufacturing of trucks and buses. In 1960, it signed up with Renault of France and for the next 10 years, up until 1971, it manufactured auto parts for Renault vehicles. Production of NT and NH engines began in 1968 and an alliance with The Flxible Corporation resulted in the manufacture of the Flxliner bus, known in Mexico as Dina Olmpico. In 1973, Dina purchased a 60% share in Motores Perkins to help it compete against Chrysler, which was its main rival at the time. The company began making passenger vehicles in the 1980s and entered into an alliance with General Motors for the manufacture and export of vehicles and parts in 1985. In 1989, the company was taken over by the Grupo G consortium, marking a period of innovation in vehicles and automotive plastics. Dina began trading on the New York Stock Exchange in 1990 and by 2002 annual production had topped 30,000 units. International treaties paved the way for the dismantling of trade barriers and for five years, Dina has been working on a strategic process focused mainly on exports and the search for new markets. With the opening of the domestic market, it was no longer feasible to produce so many vehicles. Today we have the capacity to manufacture some 6,000 vehicles a year, half of which are for export. Most of our exports go to Nicaragua and the US but we are in talks with Peru and Colombia and have distributors in El Salvador, Honduras and Guatemala. What were doing today is

wooing the customer because weve been out of the picture for five years, says Pliego. Dina, he says, is a leader in technology for heavy vehicles and buses. We are the only manufacturer in Latin America that makes chassis and bodies at the same facility. The companys manufacturing facility is in Ciudad Sahagn, in the central state of Hidalgo, and employs some 550 people. In 2010, Dina reported sales of 10 million usd. Even during the time it was absent from the marketplace and in 2008 and 2009, when the global recession was at its peak, it was one of the few companies to post growth, increasing its share of the domestic market from 1 to 2.5%. Today, Dina boasts a 5% share of the Mexican market. This year we aim to do even better, says Pliego, adding that The panorama in Nicaragua has been good. Business has been booming and we were able to win a tender for 350 buses because the Mexican government, together with Nicaragua, put up funds under the San Jos Free Trade Agreement. Things are looking up and we are about to close a deal with Colombia which should produce tangible results by the summer of 2012. Dinas future is shining.

aS STrOng aS THe firm THaT makeS THem

Dina products are renowned for their durability. Some have made it to 40 years and are still going strong, growing old with the firm that made them. The average life, at least according to Mexican government standards, is up to 10 years, says Pliego, but weve seen Dina trucks that are over 40 that are still in service. Mexico has the worlds second largest fleet of heavy vehicles; there are approximately 120,000 Dina vehicles on the countrys roads. A Dina engine can put in 1.5 million kilometers without being remanufactured; a chassis can last 20 years, depending upon its use, and a

Dina truck can transport up to 40 tons. Weve seen Torton trucks being loaded with up to 50 tons of fresh produce at the market and they continue to bear up. Thats the advantage of a chassis built to withstand speed bumps, potholes and any other obstacles that come its way. A willingness to meet the customers needs or petitions is what sets the company apart. The customer calls the shots. If he wants three windows instead of four, we make it happen and the same goes for modifications to the exterior or interior design. Were flexible, says Pliego. Also, the components Dina uses are universal and can be easily purchased over the counter, making repairs a lot less troublesome. After sales support is another value added factor. Dina offers training for its customers mechanics to ensure warranty conditions are met and its units are properly serviced. From passenger vehicles for public, corporate and school transportation to freightliners, Dina is constantly innovating. The companys Sustainable Transport line offers fuel economy and reduced emissions. We are the first brand to offer vehicles that run on natural gas, which produce fewer emissions and are as much as 30% cheaper than their diesel equivalents, says Pliego. Dina is also working on hybrid buses and zero emission hydrogen powered electric vehicles. The only thing that is emitted by the exhausts of these vehicles is water vapor and theyre not like the electric ones that you have to plug in to charge; they use hydrogen to generate electricity. In the future, says Pliego, Dina will be focusing on new markets and sustainable innovation in a bid to continue supplying the international market with quality vehicles. n
www.dina.com.mx

28 Negocios

Photo courtesy of safran

rising To mAximum HeigHT

The aerospace industry in Mexico seems to have reached supersonic speed. In less than a decade it evolved from manufacturing simple parts and assemblies to bigger items such as aircraft tails and fuselages. Today, Mexican aerospace industry is moving towards more advanced engineering and design activities.

Jean-franois damois / creative center / safran

cOver feaTure mexican aerospace indUstry

exico has become a major innovation and manufacturing center in the aerospace industry. In the last decade, the worlds leading aerospace companies have found in Mexico the ideal destination for the development of their manufacturing strategies, given available capabilities and talent. Many facts have favored the development of the aerospace industry in Mexico. Aerospace companies emphasize the availability of human capital and competitive costs as the main strengths of Mexicos aerospace industry. The global industrys opinions match various studies that have underlined Mexicos comparative advantage in terms of costs. According to KPMG, our country is ranked first in terms of operation costs compared to the industrys leading countries. This advantage results largely from the country being part of the dollar zone, its free trade agreements and macroeconomic stability, among other factors. In addition, there are 745,000 engineering and technology students in Mexico, that is, 30% of the countrys total university population. Moreover, according to the National Association of Universities and Higher Education Institutes (ANUIES, for its acronym in Spanish), close to 114,000 engineering and technology students graduate each year and there are more than 900 postgraduate engineering and technology programs in highlevel Mexican universities. Also, the experience and success of the automotive and electric-electronic sectors in Mexico, have served as a platform for the aerospace industrys development, and have begun the creation of a solid provision/supplying chain. Today, Mexico is the country with the largest investment in aerospace manufacturing and holds the sixth place in aerospace research and development investment. During the last five years, Mexicos aerospace-related exports have more than tripled and the number of companies established in the country keeps growing. Mexico is the country with the highest investment attraction of aerospace manufacturing for the 1990-2009 period. According to the Mexican Aerospace Industry Association, the country is ranked 12 in the global tables of aerospace equipment

exporters. In 2010, the aerospace sectors exports reached 3.27 billion usd. In 2011, Mexican aerospace exports are expected to surpass 3.5 billion usd. Most of the Mexican aerospace sector exports are directed to the US market (81%); followed by France and Germany, each with 2.8%. Canada and the UK come in third place with a participation rate of 2.6% each. Currently, Mexico is the ninth largest provider to the US aerospace market and the sixth supplier to its European counterpart. Exports are accelerating quickly as manufacturers move into bigticket items like tails and fuselages.

today, mexico is the coUntry with the largest investment in aerospace manUfactUring and holds the sixth place in aerospace research and development investment.

grOwTH & evOluTiOn

Mexicos aerospace sector is sustained by five main axes: Manufacturing; Engineering; Design; Education (training, coaching and education) and Maintenance, Repair and Overhaul (MRO). Currently, over 70% of aerospace companies in Mexico focus, partially or totally, on component manufacturing. For their part MRO companies account for close to 23% of total companies and their main capacities focus on providing maintenance for turbines and engines, auxiliary power units, fuselages, electricelectronic systems and landing systems, among others. Finally, services and engineering companies account for close to 13% of the industry. In terms of components developed in Mexico, around 23% of companies have engine man-

Jean-christophe moreau / creative center / safran

30 Negocios

Photo courtesy of safran / inFogRaPhic oldemar

Jean-franois damois / creative center / safran

some 40 years ago, Jalisco had already developed high-tech manUfactUring capaBilities in the electronics and aUtomotive sectors, so the Upgrade to aerospace prodUction was a natUral progression.

ufacturing and maintenance capabilities. The industry also has capacities in the manufacture of fuselages and, in particular, their parts (15%). In addition, 7% of companies manufacture electrical systems and another 4% manufacture and maintain undercarriages. In an initial stage, Mexico manufactured simple parts, autoparts and assemblies. In just a few years, the country entered into a second stage, which includes manufacturing of turbines, fuselage, harnesses and landing gears, among other products. Today, Mexico envisions entering a third stage in which complete airplanes will be designed and assembled, consolidating the country as a first class innovation center. That evolution process is supported by several favorable conditions. For example, Mexico is one of the few countries in the world that relies on a bilateral agreement of mutual recognition of certifying systems: AeronauticalBASA (Bilateral Aviation Safety Agreement) together with the FAA (Federal Aviation Administration) of the US. Therefore, it is relevant that Mexico has the procedures needed to implement the BASA in design and manufacturing processes (IPA).

regiOnal develOPmenT
Although aerospace companies are established in almost all of Mexican states, some regions register faster growth rates and have become attractive poles for aerospace development. That is the case of Baja California, Jalisco and Quertaro. Baja Californias aerospace industry is integrated mainly by foreign companies. Nevertheless, a growing number of national companies

take part not only in manufacturing but also in complex tasks such as design, R&D and innovation projects. Rockwell Collins was the first aerospace company to establish in the state in 1966. Since then, other large multinationals began opening facilities in the state, such as Zodiac, GKN, Chromalloy, Honeywell and Gulfstream, among others. Currently 52 out of the 232 aerospace companies established in Mexico, are located in Baja California employing more than 13,000 people that is more than 40% of the industrys workforce in the country. Furthermore, 65% of the aerospace companies established in Baja California are certified in AS9100 and NADCAP, a key element that guarantees the quality of the state production. Some 40 years ago, Jalisco had already developed high-tech manufacturing capabilities in the electronics and automotive sectors, so the upgrade to aerospace production was a natural progression. As a result, the state is planning to increase the number of companies that provide parts and engineering services over the next 10 years. Companies in the region are driving this transition by obtaining certification in aerospace quality standards, such as AS9100 for manufacturing, supply chain management and logistics. In addition to this, embedded-design companies that service global original equipment manufacturers (OEM) are performing research and development (R&D) activities. Because of its broad base of young engineers, Jalisco is the ideal place to develop aerospace design and engineering activities. In fact, in Guadalajara, the state-capital, existing projects

are in place for producing engine components, wire harnesses, cables, landing-system components and heat exchangers, and for providing plastic injection, precision machining, fuselage insulation, and maintenance, repair and overhaul, among others. Some of the sophisticated engineering projects that are currently handled in Guadalajaras metropolitan area include engineering instrumentation for flow diagnostics, computer vision, mathematical pattern recognition with metrology facilities, rapid prototyping and virtual instrumentation. In Quertaro, Montreal-based Bombardier, the first major company to arrive in that state in 2006, opened shop hoping that a big-name companys presence in Mexico would attract others in the supply chain. Things went according to plan, and now Bombardier and other major aerospace companies established in Quertaro contracts with a network of regional suppliers. What started as a challenging idea, is nowadays recognized as the strongest Mexican aerospace cluster. Following successful international models such as Toulouse, France, Wichita and Seattle in the US and Montreal, Canada, Quertaro has consolidated itself as a strong aerospace cluster. Quertaro Aerospace Valley is formed by more than 50 local and foreign companies employing 4,800 workers. The Quertaro Aerospace Park is the premier location in Mexico exclusively for aerospace suppliers. Located in Quertaros international airport, it offers a combination of infrastructure, competitive lease rates, and the first Aeronautic University in the area. n

cOver feaTure mexican aerospace indUstry

Cruise Altitude
Mexican Aerospace Exports
Mexico is ranked 12 among the worlds major aerospace exporters.
Exports by year (billions of USD) 2002 2004

of the aerospace companies in Mexico are focused on component manufacturing.

70%

offer Maintenance, Repair and Overhaul (MRO) services.

23%

are services and engineering companies.

13%

3.13 2.73
2006 2007

2008

3.26
2010

2.04 1.68
2005

1.34

2003

1.30

1.26

Major markets for Mexican aerospace exports

Participation of Mexican exports

Mexicos Partners
Germany France US

UK

Canada

2.6%

2.6%

2.8%

2.8%

Aerospace companies
61

81%
232

established in Mexico

67

120

193

2005

2006

2007

2008

2010

Mexican Manufacture

Of the aerospace manufacturing companies operating in Mexico:

23%

manufacture and maintain engines.

15%

manufacture fuselages and fuselage parts.

7%

manufacture electrical systems.

4%

manufacture and maintain undercarriages

Source: ProMxico / Mexican Federation of Aerospace Industry.

32 Negocios

Photos courtesy of ge

generaL eLectric puts mexico in the WorLds skies

the engines that power some of the worlds most prestigioUs aircraft families are developed at general electrics advanced engineering center in qUertaro

mexicOS ParTner geiq

this research campUs is the only one of its kind in latin america similar facilities are to Be foUnd only in tUrkey, rUssia, poland and india. it employs 1,300 engineers, most of whom are gradUates of mexican Universities.

eneral Electrics confidence in Mexico, more specifically in the talent of its engineers, has sent the country soaring sky high. Literally. The turbine engines that several families of international commercial carriers are fitted with are designed at the General Electric Advanced Engineering Center (GEIQ) in the state of Quertaro, in addition to software that can illuminate entire buildings and devices to generate electricity and fossil fuel energy. The Advanced Turbomachinery Engineering Center (CIAT, for its acronym in Spanish) that preceded geiq was opened in 1999, also in the state of Quertaro. General Electric invested 24 million usd into the expansion of CIAT, which began operating under its new name in mid-February 2011. The research campus is one of a kind in Latin America similar facilities are to be found only in Turkey, Russia, Poland and India. It employs 1,300 engineers, mostly graduates of Mexican universities with specializations in aerospace science and technology and who, together, devote over one million hours a year to aeronautical research. General Electric plans to pour an additional 20 million usd into the center in 2015 to take on more engineers and step up its research activities. It is no coincidence that General Electric chose the central Mexican state of Quertaro as the location for GEIQ. Mexico has been a key

territory in the companys development, just as General Electric has played a key role in the economic development of certain regions of the country. Their shared history began in 1896, just 15 years after General Electric was founded in the US and only five years after Thomas Edison built the worlds first incandescent light bulb factory in New Jersey. General Electric opened its first factory in Mexico in 1929 and the business opportunities have continued ever since, according to GE General Manager for Mexico Gabriela Hernndez Cardoso. General Electric has 21 manufacturing plants in Mexico more than it has in any other country bar its native US. It also has a presence in the country through the assembly plants of partners such as Mabe, IUSA, Prolec GE and AMI GE. Some 11,000 people are employed directly in Mexico by General Electric, which was listed as one of the best companies to work for by Expansin magazine. Due to its skilled labor, strategic geographic location and ties with other markets in Latin America and the world, Mexico holds enormous potential for the companys development, as General Electrics global executives have duly acknowledged. GE Capital, Energy Infrastructure, Technology Infrastructure and Home & Business Solutions are some of the business units currently operating in Mexico. These days, however, opportunities arent to be had solely on the manufacturing end but

also in research and development. And this is the task of GEIQ, an 8,000-square-meter facility where mechanical parts and software are developed; where designs are validated, where diagnostic tests are conducted, where components are certified and where several international airlines come for support and assistance. Every time you get on a plane, you have something to thank GEIQ for, not least the GEnx, a next generation turbofan jet engine that translates into fuel savings of 20% for commercial craft like the Boeing 787, 747-8 and 777. The center is currently working on mechanical parts for the worlds largest aircraft, the Airbus A380; solving problems related to the powerful G90 engine and developing some of the 110 clean energy products featured in General Electrics ecomagination portfolio. The list of services and products manufactured in Mexico is vast, ranging from engine cabs, maritime engines, steam, wind, water and gas turbines to electricity generators, nuclear reactors, water-treatment equipment, valves, drilling systems for oil wells, electricity plants for oil refineries, systems for the operation and maintenance of electric power plants, medical equipment, electrical appliances and lighting and light bulbs, to name just a few. All designed and made by the heads and hands of Mexico, a country General Electric would change for no other. n
www.ciat.com.mx

34 Negocios

Photo courtesy of safran

safran, flying on mexican fuel

In terms of employees, Mexico rates third worldwide in the operation of this French conglomerate, whose demand for specialized labor keeps it firmly grounded in the country.
by karla gardUo
hen Safran came to Mexico 20 years ago, it was already a formidable bird of prey, but it has since stretched out its wings and today is a world leader in the manufacture of engines for commercial jets, landing gear and even biometrics. Safran arrived in Mexico in 1991. A few years after, the French conglomerate acquired Labinal de Chihuahua, the subsidiary of the French firm Labinal that manufactures aircraft wiring harnesses in Mexico for the US market. Safran now has eight manufacturing facilities in Mexico in Chihuahua, Quertaro, Tamaulipas, Estado de Mxico and Mexico City that employ over 3,000 people and that are valued at around 350 million usd. Stphane Lauret is president of Safran Mexico. From his Mexico City office he oversees the companys Mexican operations, making sure every cog in this perfectly oiled machine is working properly not an easy task if you consider that Mexico rates third in terms of the number of people Safran employs worldwide. The group employs 55,000 people and with the acquisition of L-1 [in July 2011], this

figure increased. France is first, with 35,000 employees; the US comes in second place due to external growth and takeovers; and Mexico comes in third in terms of employees, which speaks of the countrys importance to the company, says Lauret. Like other multinationals, the main reason Safran chose Mexico to set up shop was its strategic geographic location. That said, Lauret cites quality of labor and the potential for specialization as some of its reasons for staying put and embarking on new projects. Before year-end 2011, Safran plans to expand its plant in Quertaro and create some 350 highly specialized jobs. According to company projections, the new facility will allow the company to grow 15% in Mexico. After establishing ourselves as a supplier of the US market, over the last five years we have opened or expanded seven facilities, mainly in the high-level part of the business engines, landing gear and their maintenance. We are also registering growth in the security side of the business, which basically means the group is satisfied with the country. Obviously, its not all perfect, but results are good, which is why the group is expanding, says Lauret, who has felt at home in Mexico since he arrived two and a half years ago.

mexicOS ParTner safran

safran now has eight manUfactUring facilities in mexico in chihUahUa, qUertaro, tamaUlipas, estado de mxico and mexico city that employ over 3,000 people and that are valUed in the region of 350 million Usd.

all STakeS On SPecializaTiOn

Quality is what underscores Safrans international reputation and, as such, it its most valuable asset. The conglomerate dominates all three market branches aerospace propulsion and equipment, security and defense it specializes in. Safran is world leader in the manufacture of helicopter engines, and wheels, engines and carbon brakes for commercial jets. In the area of defense, it has taken the lead in helicopter flight controls and has earned itself a name in the security business, producing biometric identification documents, such as the voting credentials used in Mexico, as well as biometric access controls and terminals, automated fingerprint identification systems and systems to detect explosives. With a track record like this, employee training is vital, as is greater specialization, particularly in a country like Mexico where the aeronautic industry got off the ground five years ago. This is why Safran, together with the Mexican government, the French Embassy in Mexico and the state government of Quertaro, is in the process of establishing an aeronautics university that is scheduled to open its classroom doors in a few months time and expects to receive around 700 students in the next three years.

We have invested 15 million usd in this campus, which is a project undertaken jointly by four entities: Safran, the governments of France and Mexico, and the state government of Quertaro. We want to do something similar in Chihuahua, says Lauret. Over 90% of Safrans employees in Mexico are Mexican. Here we have a competitive workforce, he says, but more importantly, a motivated one. Proximity to the US and the dollar zone are important, but if you come here and realize you cant work well, that the labor standards arent optimal, you close the factory. Its not a question of costs; sure costs matter, but if the quality is lacking, you shut down the project. The cost comes later, at the end. Twenty years ago, managerial positions at Labinal de Chihuahua were occupied by French executives. Today they are all held by Mexicans. Better yet, according to Lauret, Labinal of Chihuahuas former director of operations is today the number two executive at Labinal worldwide and is in line to be president, some day.
cOmPeTiTive all arOund

Safran is no sleeping partner in Mexico. Its efforts to make its own production chains

more efficient have benefited the countrys aerospace industry as a whole. In addition to the aerospace campus in Quertaro, the French conglomerate is working closely with the Department of the Economy and ProMxico in the development of a supply chain to strengthen the domestic base. We want to buy more in Mexico, says Lauret. The problem is the aerospace industry isnt an easy one; its not a piece of cake. Things are obviously a bit slow at the moment, but were working on this with a view to expanding. Its complicated for a company to make an incursion into aerospace overnight. The example is often given of Mexican companies operating in the automotive sector that could make the transition to the aerospace industry, but its not as simple as that. In the automotive sector, you can produce 100 parts with a high error margin, but in the aerospace industry youre only going to produce two, so theres no room for error. This business requires hefty investment. To date, the most common solution has been to bring in companies from the US, Canada, Europe and Japan to set up joint ventures in Mexico. But Safran has flown against prevailing winds and opted to sup-

frdric lert / safran

36 Negocios

Photo courtesy of safran

is to get everyone working together, because Quertaro has things you cant find in Baja California and vice versa. Its always going to be that way. The idea is to work together more often, says Lauret.
Taking uP THe green gaunTleT

like other mUltinationals, the main reason safran chose mexico to set Up shop was its strategic geographic location. that said, laUret cites qUality of laBor and the potential for specialization as some of its reasons for staying pUt and emBarking on new proJects.

port the creation of small and medium enterprises to take on the challenges Mexicos fledgling aerospace industry poses. Approximately 22 such enterprises have already been set up or are in the process of being incorporated. Another accomplishment Safran can take credit for is getting the various states it operates in to work together with a view to boosting overall competitiveness. We are present in five states and havent experienced problems with any, but the idea

Safran has followed in the footsteps of many of the worlds large industrial conglomerates and taken up the gauntlet of sustainable development. Along with GE, Safran conceived the CFM56-5B4/3 biofuel-powered jet engine. In Mexico, Interjet is using the CFMs know-how in terms of biofuel powered flights On April 1st 2011, Interjet made its first test flight. One of the airlines engines was powered with biofuel made from jatropha, algae and halophytes. We worked with them closely from the beginning, because it is a project that is of great interest to us. We believe Mexico has the potential to be a bio jet fuel country of the future, but this goes way beyond Safrans scope, says Lauret. These and other projects like them have enabled Mexico to contribute to Safrans bottom line, with the group reporting growth of 8.2% and revenues of 5.62 billion euros in the first half of 2011. n
www.safran-group.com

thierry mamberti / safran

Safran in mexicO
labinal Location: Chihuahua. Employees: 2,230. Founded: 1998. Activities: two electronic systems assembly factories and a design center . meSSier ServiceS america Location: Quertaro. Employees: 210. Founded: 2007. Activities: landing gear and hydromechanical systems MRO for Airbus, Bombardier and Boeing. Snecma america engine ServiceS Location: Quertaro. Employees: 120. Founded: 2008. Activities: OEM for CFM56 engines. Snecma Location: Quertaro. Employees: 90. Founded: 2009. Activities: production of booster spools, turbine blades and vanes for the CFM56. meSSier-dOwTy Location: Quertaro. Employees: 120. Founded: 2009. Activities: Phase 1, manufacture of steel parts; Phase 2, subassembly. glObe mOTOrS Location: Reynosa. Employees: 150. Founded: 1989. Activities: manufacturing operations for automotive and industrial production, design and development of test equipment, tool rooms, metrology and lab analysis. mOrPHO idenTificaTiOn Location: Mexico City. Employees: 50. Founded: 1994. Activities: identity management systems, multibiometric identification systems, biometric access control and terminals, airport security and speed control. mOrPHO e-dOcumenTS Location: Estado de Mxico and Mexico City. Employees: 30. Founded: 2008. Activities: personalization of smart cards.

mexicOS ParTner aernnova

Aernnova makes a successful Landing in Quertaro

Just two years after arriving to Mexico, this Spanish firm has a third plant, for the production of aircraft and helicopter parts, on the drawing board.

ernnova Aerospace of Spain will build a plant for the production of carbon fiber aircraft structures in the Mexican state of Quertaro. Construction work will begin in the last quarter of 2011 and the facility is expected to be operating by the second half of 2012, according to company sources. This is the third plant to be built by the global aerostructures company since it came to Mexico just two years ago. Airbus, Boeing, Bombardier, Eads, Embraer, Eurocopter and Sikorsky are just some of the names that feature in the client portfolio of Aernnova, which manufactures metallic and composite parts, in addition to providing engineering, repair and product support services. The state government of Quertaro and the Department of the Economys Investment Promotion Unit smoothed the way for Aernnovas arrival in Mexico, where its first plant was officially opened in February 2009 by President Felipe Caldern Hinojosa at the Quertaro Industrial Park. At the time, Aernnova projected that it would channel 100 million usd into its Mexican operations between then and 2014, a figure that has since risen to 140 million usd. Prior to 1999, the companys production activities and services were concentrated in Spain,

Brazil and the US. It wasnt until the mid 1990s that Quertaro appeared on its radar. At the opening ceremony of its first plant in Mexico, Aernnovas CEO Jos Luis Osoro said that the central Mexican state of Quertaro was chosen for its relative proximity and ease of access to customers in the US and South America. Quertaro also offers skilled labor, scientific research centers, tax incentives and security, which, together, guarantee conditions of quality, price and competitiveness that are conducive to the development of the industry. In the case of skilled labor, it is supplied by specialized institutions like the Universidad Nacional Aeronutica (UNAQ), founded in Quertaro in 2006, while a team of Mexican engineers were trained at the companys plants in Spain. Aernnovas plants in Quertaro have two missions: one is the manufacture and integral management of large aircraft structures like fuselage sections, wings and stabilizers and the other is the manufacture of metallic, composite and mechanized parts. All these products are fully finished by the time they reach the customers final assembly line. The new plant, which will begin operating in late 2012 if all goes accordingly, will specialize in the manufacture of parts and the mounting of carbon fiber structures for aircraft and heli-

copters, such as landing gear hatches, winglets, flaps, ailerons, spoilers, elevators and rudders. According to Aernnova Aerospace spokespersons, this latest addition to its production facilities in Quertaro will cost the company 50 million usd but will enable it to offer everything from engineering and supplier management services to the manufacture of finished products, right up to final delivery to the customer. Mexico stands to benefit from the transferal of technology, both in terms of engineering know-how and infrastructure for the manufacture of the parts and structures Aernnova specializes in. The companys short-term goal is to create a market in the region and supply parts to other manufacturers that set up shop in Mexico. On a grander scale, it aims to build up a network of producers and suppliers of aeronautical components to meet sub-contracting demand in different parts of the world. Once the new plant comes on line in 2012, Aernnova Aerospace will be employing some 1,300 skilled workers and will have an estimated annual production capacity of two million hours. n
www.aernnova.com

38 Negocios

Photos courtesy of honeywell

mind over matter

Founded in 1904, Honeywell has a 30-year presence in Mexico, where it develops aerospace systems. Its goal is to apply Mexican talent to compete not only in manufacturing but also in project design and management.
by gUstavo archiga

oneywell has its head in the clouds and its feet in Mexico. Founded in 1904 by a young engineer by the name of Mark Honeywell, the company now has 122,000 employees worldwide. That includes 19,000-plus engineers and scientists whose task is to invent, design and manufacture products that respond to global trends in safety and energy efficiency. Part of that design effort and intellectual capacity is located in North Mexico, in facilities that develop aerospace projects for commercial airlines and the military. The Mexicali Research & Technology Center in Baja California is one of a kind. This 35-million-dollar system integration lab has

mexicOS ParTner honeywell

honeywells research & technology center in mexicali, BaJa california is one of a kind. this 35million-dollar system integration laB has Been in operation since 2007 and employs 400 people, engaged in the design engineering and testing of components for aircraft systems.

been in operation since 2007 and employs 400 people engaged in the design engineering and testing of components for aircraft systems. Also on the border, Honeywell Chihuahua Manufacturing Operations is a manufacturing center that produces mechanical engine components. These facilities in Chihuahua have been recognized as a Center of Excellence in advanced precision mechanics for commercial and military aircraft engines. Honeywell is also present in Monterrey, Nuevo Len, where it has a center that serves suppliers and supports the manufacture of commercial vehicles and jets. In 1986, Honeywell significantly enhanced its position in the aerospace industry with the acquisition of Sperry Aerospace, which

contributed flight controls, space vehicles and the first FAA-certified wind shear warning system, making Honeywell the worlds leading integrator of avionics systems. It was around that time that the company realized Mexico had the potential to be competitive in the aerospace industry and began hiring engineering graduates and professionals with six or seven years of engineering experience. According to Alfredo Crdenas Roldn, director of the Mexicali Research & Technology Center, Honeywell has invested in Mexico for strategic reasons because its proximity to the US and South America facilitates product transportation and because it has a steady supply of skilled labor, with 90,000 engineers

graduating each year from reputable universities like the Tec de Monterrey, the National Polytechnic Institute and research centers funded by the National Science and Technology Council (CONACYT). You find cosmopolitan people educated at good schools and who like aerospace engineering. The company realized theres a lot of talent in Mexico in the field of engineering. Thats why the design groups have grown so much. Were asserting ourselves in the design of the products Mexico makes. Were starting with simple products but the long term goal is for all manufactured goods in Mexico to also be designed here; to do away with all the coming and going whereby products are designed and approved in the US and then manufactured

40 Negocios

Photos courtesy of honeywell

on the commercial end, honeywell has also foUnd an ally in mexico. the company has teams providing assistance for corporate Jet and commercial airline markets, while mexico leads in cUstomer services for latin america.

green aPPrOacH This summer, the Mexican airline Interjet made its first round-trip passenger flight using Honeywell Green Jet Fuel, a biofuel produced from Jatropha curcas. Flight 2605 departed from Mexico City and landed safely in Tuxtla Gutirrez, Chiapas. The fuel used to power the Airbus A320-214 was produced using a process technology developed by Honeywell UOP, which turns the natural oils and fats in the Jatropha into a biofuel that is then blended with petroleumbased jet fuel. The use of this biofuel can reduce a flights carbon footprint by as much as 80% compared to conventional jet fuel. in Mexico. The idea is to position Mexico as a leader in the technology that develops the products designed here, says Crdenas. On the commercial end, Honeywell has also found an ally in Mexico. The company has teams providing assistance for corporate jet and commercial airline markets, while Mexico leads in customer services for Latin America. Honeywell has employees in Baja California and Monterrey who handle corporate projects and programs, take care of the finances and engineering design, draw up contracts, deliver products and provide after-sales support. Crdenas believes Mexico has an enormous advantage in its manufacturing costs which are extremely competitive, sometimes lower even than in Asian markets. Mexico also has great potential on the operating side of things. But its the engineering aspect thats really taking off. Thanks to Honeywell, other companies in Mexicali are bringing in engineering teams for their own projects. On the supply front, Honeywell has a chain of direct and indirect suppliers who have buoyed its success in Mexico for many years. The challenge here is that the aerospace industry demands certified products, which implies costs too expensive for many smallscale manufacturers to absorb. Honeywell is trying to surmount these obstacles so the products manufactured at its facilities can also be designed by Mexican minds. But its not all business. Since 2008, Honeywell has been organizing university programs to support and promote science and math in Monterrey, Chihuahua and Mexicali. For example, the Rocket Club is an educational physics project where kids can learn about the concepts of gravity and mass by building their own rockets. In the mid-term, the company plans to expand its global Honeywell Turbo Technologies program and set up a world class testing center in Mexicali. The MultiAir gasoline engine Fiat automobiles are equipped with is an example of that technology, which offers 10% more power and a 15% improvement in fuel economy compared to conventional engines, resulting in reduced emissions of CO2 and polluting particles. Mexicos aerospace sector has experienced exponential growth over the last decade, to the point where it is now the sixth largest worldwide. Exports have also grown in the last five years, touching 3.13 billion usd in 2008. Clearly the sector is in good health and has a lot more than hot air propelling it. n
www.honeywell.com

a gianT Of THe air wiTH a mexican flair System integration testing for the Airbus A350 and the design of the HTF 7500 engine for Embraer are the main aerospace engineering projects Honeywell is focused on in Mexico. The Airbus A350 competes directly with the Boeing 787 and is indubitably Honeywells priority program here. The crafts rear engine, cockpit system, engine system, control electronics, fans and valves are being designed in Mexicali, Baja California, while state-of-theart aerodynamics are being employed to reduce wind resistance and improve speed and fuel economy.

The lifestyle
T h e Complete Guide of the Mexican Way of L i fe .

Diana Kennedy: A Brit with a Mexican Palate

p. 50

mara del Pilar Luna Un derwater Time Travel

p. 42
Photo archive

42 Negocios i The Lifestyle

Photo courtesy of inah

mara del Pilar Luna

if yoU think aBoUt it, mara del pilar lUna is really a time traveler who Uses water as her mediUm.

underwater Time Travel

exicos seas, rivers, lakes and cenotes are a treasure trove of fragments from the puzzle that is our history. Since 1980, a multidisciplinary team of scientists has dedicated its efforts to finding, preserving and piecing together these fragments to determine which period of life on Earth their discoveries belong to and where they fit into world history. The team works under the guidance and coordination of a woman whose accomplishments could fill the pages of an entire book: Mara del Pilar Luna Erreguerena, deputy director of marine archaeology at the National History and Anthropology Institute (INAH). Born in Tampico, Tamaulipas, Mara del Pilar learned to swim almost before she could walk. And she kept on swimming against the tide, insisting on attending university despite the mores of the day. As an archaeology student in the late 1960s and early 1970s, she got to wondering what cultural treasures lay at the bottom of the ocean and how it would change

mara del pilar lUna erregUerena has BroUght mexico recognition in the field of marine archaeology

our knowledge of history if these could be studied. Her response was to become a certified deep sea diver. In 1970, her tenacity earned her an apprenticeship with Americas George F. Bass, considered the father of underwater archaeology. She went on to single handedly open the floodgates for the scientific study of the cultural heritage that lies beneath Mexicos waters, persuading INAH to set up a special underwater archaeology department and championing the countrys participation in international organizations like the Advisory Council on Underwater Archaeology, the International Committee on Underwater Cultural Heritage and the Scientific and Technical Advisory Body to the UNESCO Convention on the Protection of Underwater Cultural Heritage, a 12-member board on which she has sat since it was created in November 2009. Rejecting the social paradigms of her age, Mara del Pilar struck out alone, perhaps in the knowledge she didnt need a partner to form a family one that now extends the length and breadth of Mexico and beyond its borders.

inTerview mara del pilar lUna

Mara del Pilar enjoys close ties with archaeologists in the US and Canada, with whom she has been sharing experiences since the 1970s. More recently, she has garnered the support and respect of researchers in Spain. She has also been instrumental in training a new generation of experts eager to enrich our knowledge of history with their watery discoveries; her Maritime and Underwater Archaeology, Research and Management course, sponsored by UNESCO in 2010, was attended by students from 14 countries throughout Latin America and the Caribbean. In addition to these activities, she coordinates a multidisciplinary team of biologists, archaeologists, historians and geographers, oftentimes recurring to archaeoastronomers, as well as museum curators and experts in universal art, restoration and conservation. If you think about it, Mara del Pilar Luna is really a time traveler who uses water as her medium. She has conversed with characters from the distant past, one of whom she saw weave a fishing net with a needle fashioned out of the sting of a stingray. She happened upon this artifact in 1980 in the waters of Grand Cayman, a British overseas territory in the Caribbean. This small object means a lot to me because it represents the connection between the archaeologist of the present and the person from the past that made and used it, she says. Mara del Pilar and her team have been transported back to the 16th century, when a galleon from the Philippine city of Manila was shipwrecked off the coast of Baja California. Some 1,500 fragments of china from the Ming Dynasty (1563-1620) and coins that were legal tender in the days of Spanish monarch Felipe II (1556-1598) revealed the extent of intercontinental trade all those centuries ago, while sheets of lead that were used to line the ships hull were also retrieved. She and her researchers have literally smelled the copal left by the ancient settlers of America in the Sun and Moon lagoons in the crater of the Nevado de Toluca volcano in Estado de Mxico 1,500 years ago and have relived the drama of countless shipwrecks from the 16th right up to the 21st century in Banco Chinchorro, a reef south of Cozumel in the state of Quintana Roo. But it is science and the search for knowledge that spurs these discoveries, not mere treasure-hunting, insist the members of the INAH Underwater Archaeology Department. They

also insist that archaeologists be assisted in their tasks by experts in the social and exact sciences, since a great deal of evidence relating to the history of maritime navigation has been lost due to the looting of wrecks or the removal of artifacts from their context, which makes it harder to interpret their meaning. The treasure of a site isnt the objects in themselves but the research that goes on around them. The objects are a means of connecting us with people who went before us; the ultimate goal is knowledge and education, says Mara del Pilar. From day one at the helm, Mara del Pilar Luna has demanded scientific rigor of her multidisciplinary team, infected its members with her resolve and fostered in them a spirit of co-

she has conversed with characters from the distant past, one of whom she saw weave a fishing net with a needle fashioned oUt of the sting of a stingray. she happened Upon this artifact in 1980 in the waters of grand cayman, a British overseas territory in the cariBBean.

Photo Jorge alberto lvarez salazar

Photo archive

44 Negocios i The Lifestyle

Photos archive

yet fame has not dinted her strong sense of professionalism. lUna is as concerned as ever to ensUre that science complies with international protocols, even when the salvage work spans several decades.

operation with other nations. It is thanks to her efforts that Mexico has a reputation as a country that protects its underwater heritage in an age when treasure hunters are plying governments for permits to plunder these archaeological sites for monetary gain. There is a before, during and after to fieldwork both on the surface and under the water. That implies documentary research, without which we would be left with silent artifacts or fragments thereof unless the proper precautions are taken. When the remains of a shipwreck are located, we only have half the information and preserving it is a meticulous task that falls to restoration and conservation experts because artifacts found underwater can suffer damage or disintegrate completely the minute they come into contact with the air. The other half of the story, the voices that recount the past of these artifacts, are found in the archives and the hypotheses of experts. These voices speak of daily life aboard the ships, clashes with pirates, tragedies at sea and their survivors, the red tape and regulations of sea voyages, the adventures of Men of Old in newly charted waters, sea faring routes, navigation and superstition. According to INAH, written records of all these aspects represent an invaluable archaeological resource, scattered among archives in Spain, Cuba and Mexico: the General Archive of the Indies in Seville; the General Archive of

Simancas; archives containing the protocols of Cadiz, Seville and the Basque country; the Naval Museum and the Royal Academy of History in Madrid; Mexicos National Archive; the Notaries Archive; the Puebla City Hall Archives and the Historic Archives of Veracruz. Luna, it seems, has one foot in the past and another in the present. Her drive to keep up to speed with each and every development in underwater research in Mexico has transcended borders. On January 7, 2011, the Society for Historical Archaeology (SHA) of the US presented her with the J.C. Harrington Medal, making her the first woman in Latin America to receive this prestigious award for her lifetime contribution to the discipline. That is the second occasion on which the medal has gone to an expert in underwater archaeology the first was in 1999 when it was awarded to Lunas mentor, George F. Bass. Yet fame has not dinted her strong sense of professionalism. Luna is as concerned as ever to ensure that science complies with international protocols, even when the salvage work spans several decades. You could say Mara del Pilar was lucky to have been born in Mexico, a country with coastline to spare. Its impossible to know exactly how many underwater archaeological sites we have. On the Yucatn Peninsula alone, there are thousands of cenotes and underwater cav-

erns, many of which contain vestiges of civilizations dating from prehistoric, pre-Hispanic and colonial times. Mainly wrecks from the 16th through to the 20th centuries are found in the Pacific, the Gulf of Mexico and the Mexican Caribbean, as well as isolated finds from accidents at sea, says Luna. One of the projects undertaken by the INAH department she heads consists of compiling inventories of archaeological finds at these sites and their locations. Parallel to that, her team works at specific sites, on projects like the New Spain Fleet of 1630-31 and related manuscripts that shed light on the historical, economical, political and social context of Spain and New Spain in the 17th century, in addition to the crew and cargo of this fleet that faced a series of trials and tribulations, finally losing several of its ships in 1631 to a storm in the Gulf of Mexico. Other undertakings include an underwater archaeological atlas for the documentation, study and protection of cenotes and underwater caverns on the Yucatn Peninsula, the Manila Galleon Project in Baja California, the Nevado de Toluca Project and two inventories: one in the Gulf of Mexico and another in the Banco Chinchorro Biosphere Reserve in Quintana Roo, which has been nominated as a UNESCO World Heritage Site. And when she isnt donning a tank and ballast, Luna investigates reports of site violations, procures legal protection, oversees the training of new recruits, conservation and educational aspects and promotes national and international cooperation agreements. This is a woman who has dedicated her life to furthering our knowledge of the past by dredging the depths of the ocean and asking herself questions that lead to the discovery of cultural treasures and invaluable historic information. So after a hard days scavenging, what does Mara del Pilar Luna Erreguerena do to unwind? I go diving, is her instant reply. n

inTerview mara del pilar lUna

the treasUre of a site isnt the oBJects in themselves BUt the research that goes on aroUnd them. the oBJects are a means of connecting Us with people who went Before Us; the Ultimate goal is knowledge and edUcation. mara del pilar lUna erregUerena

46 Negocios i The Lifestyle

Photos archive

a lunar landscape on the great divide

The Pinacate volcanic field is a well-kept secret of the desert that separates Mexico and the US. Black volcanic dust and huge craters create a magical lunar landscape that is well worth the trek.
by gUstavo archiga

deSTinaTiOn pinacate

etween 1965 and 1970, at the height of the space race, NASA sent a group of astronauts to Pinacate to train for future missions to the moon. Covered in sand with the texture of fine, black dust once the molten lava of volcanoes that shaped this tourist attraction between Puerto Peasco in the Sonoran Desert and Arizona over the course of millions of years a more lunar-like landscape would surely have been hard to find. The Pinacate Biosphere Reserve occupies the eastern portion of the Altar Desert, which is the largest stretch of continuous wilderness within the Sonoran Desert. It lies just below the border with the US, a stones throw from the beaches that line the Gulf of California, and is protected by Mexicos Federal Government in cooperation with Sonoran state authorities. Inhospitable as it may seem, the Pinacate reserve is in fact rich in desert flora and fauna, boasting over 500 plant species, 40 types of mammal and 237 bird species, as well as reptiles, amphibians and fish. Hard to fathom in a place so parched. Such is its natural wealth that it forms part of UNESCOs The Man and the Biosphere (MAB)

program to support scientific research in 564 biosphere reserves in 109 countries. Popular among Mexican and foreign tourists alike are its enormous craters, which can be visited by land but that are best viewed from the vantage point of a light aircraft. The most famous and largest of these is the MacDougal crater, which plummets over 5,000 feet into the bowels of the earth, fragments of basalt protruding from its sheer walls. Sand dunes whose hues change subtly from deep black to light brown stretch as far as the eye can see, straddling the border with the US. The reserve extends for 7,146 square kilometers equivalent to the total area of the Mexican states of Aguascalientes, Colima, Morelos and Tlaxcala. This is the immense, phantasmagorical desertscape that was admired by explorers like Melchor Daz in 1540, the Catholic priest Eusebio Kino in 1698 and, later, in 1907, the scientists MacDougal, Hornaday and Sykes, after whom three of Pinacates craters are named. The reserve is home to cultural and archaeological remains dating back more than 20,000 years, when the Tohono Oodham, a desert people also known as the Papagos, followed the

inhospitaBle as it may seem, the pinacate reserve is in fact rich in desert flora and faUna, Boasting over 500 plant species, 40 types of mammal and 237 Bird species.

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desert rains and drank from streams to survive. Their descendents still consider it a sacred zone, spattered with ceremonial sites that permit communication with the gods and the forces that govern the universe. If you decide to visit Pinacate, you can expect a sun so intense it makes your skin itch. Rainfall is minimal all year round and temperatures rise and fall at the speed of a roadrunner. Rare species of cactus, undergrowth and plants sprout up here and there, drawing sustenance from some invisible source. The black volcanic dust underfoot takes some getting used to and the going is tough, as if you were moon walking on earth. For the safety of visitors, pets and firearms are strictly prohibited, as is hunting. A 4x4 or all terrain vehicle is recommended so you dont get stuck in the sand, but make sure you get the approval of the reserve rangers in advance. Jeans and a long-sleeved shirt, sunglasses and cap will protect you from the sun and dont forget to bring along a thick overcoat if youre planning on camping out because it can get pretty cold in the desert at night. Under no circumstances should you stray off the marked paths and, as in any nature reserve, the golden rule is take nothing and leave nothing behind. Perhaps the best description of what you can expect to see in this generous slice of Mexican desert is the one proffered by environmental writer Edward Abbey in 1968: Why should anyone go out of his way to contemplate the Pinacate country, El Gran Desierto, this ultimate wasteland? One answer might be that very few people ever do go out there. But this is not an answer, only an evasion. Perhaps the explanation is that the appeal of the Pinacate country lies in its total lack of any obvious appeal. In its emptiness. In its vast, desolate nothingness. n

Photos archive

deSTinaTiOn pinacate

50 Negocios i The Lifestyle

Photo vernica muzzio

DiAnA KenneDY

A BRIT WITH A MEXICAN PALATE

diana kennedy has given kitchens the length and Breadth of the coUntry the once-over in her mission to Bring the world a taste of real mexican food.

ou could safely say Diana Kennedy loves Mexican food more than most Mexicans do. So much so that when she goes back to the United Kingdom, she misses her chicken consomm seasoned with chili sauce, the way its served in Mexico. Such is her passion for Mexican cuisine that on her farm in Zitcuaro, Michoacn, she grows crops endemic to different parts of the country, just as they are found in the wild. The last 54 years of her life have been devoted to researching, documenting and preserving Mexicos vast gastronomic heritage for posterity. It would also be safe to say Diana Kennedy is a natural-born traveler, explorer and scientist who heeds theory but who has more faith in practice. Her experiments, conducted with

inTerview diana kennedy

the last 54 years of her life have Been devoted to researching, docUmenting and preserving mexicos vast gastronomic heritage for posterity.

was eager to get her hands dirty. So she asked the family cook to show her how to make marinated pork and tamales. There was no going back. Her love affair with Mexican food took her all over the country, to small, out-of-theway communities, in search of new and exciting flavors. Ive been cooking since I was a girl because Ive always liked eating. Who doesnt like eating? is how she sums up her passion. Dianas first notes on the cuisine of Oaxaca which came in handy when she wrote Oaxaca al gusto (2009) date from 1965. The following year, she went back to New York with her husband, who passed away shortly afterwards. This English lover of Mexican food could have easily remained in mourning; instead she decided to recoup a lost love and salvage the flavors lurking in the remotest corners of the utmost patience, reveal the occult laws of nature that govern one of the most difficult to master arts: the alchemy of Mexican cooking. Hers is an intriguing story of a destiny mapped out by free will. After falling in love with the journalist Paul Kennedy, who came to Mexico in 1957 as a correspondent for the New York Times, Diana Kennedy started exploring Mexico, not as a bored housewife but as a woman driven by a restless palate. When asked if she was ever daunted by the spiciness of Mexican food, as foreigners sometimes are, she replies Never, going on to explain that she was already deliciously familiar with the pungent cuisine of India, a former British colony that is now an independent nation. Having learned to make her own jellies and preserves from an early age, Diana

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Photo vernica muzzio

the qUestion is: is the world ready for aUthentic mexican food? the kind of food yoU find in mexicos restaUrants, markets and homes, made the way it has Been for centUries? diana kennedy assUres Us it is, provided the right ingredients are Used and the recipes are carefUlly followed

bOOkS by diana kennedy The Cuisines of Mexico Recipes from the Regional Cooks of Mexico The Tortilla Book Mexican Regional Cooking The Art of Mexican Cooking My Mexico The Essential Cuisines of Mexico (compilation from Kennedys first three books, plus 30 new recipes) From My Kitchen, Techniques and Ingredients Oaxaca al Gusto: An Infinite Gastronomy

a country that wasnt even her own. No one could have imagined the odyssey that was to come. In the late 1960s, Craig Claiborne, renowned chef and food editor of the New York Times, suggested she give cooking classes. This prompted Kennedy to explore Mexico to collect recipes for her first book, The Cuisines of Mexico. Published in 1972, this was one of the first ever Mexican cookbooks in English. At this point, it should be noted that theres more to Mexican cuisine than mayodrenched burritos and insipid tacos. Soft on the palate but sore on the stomach, the tacos and burritos served up by fast food chains in the US can hardly be classed as authentic. No. Real Mexican food is a universe of ingredients drawn from home grown and foreign sources, slow cooked dishes prepared with love and passion, seasoned with infinite combinations of chilies and spices. Not even Diana Kennedy is attuned to its every nuance, as she herself readily confessed to a tourist publication in 2009. Id need many lives and many books to write about the flavors of Mexico. Everywhere I go, there are local chilies with a different taste, unknown elsewhere [] No one, not even myself, despite having traveled the country extensively, is familiar with more than a tiny percentage of the flavors out there. The question is: Is the world ready for authentic Mexican food? The kind of food you find in Mexicos restaurants, markets and homes, made the way it has been for centuries? Diana Kennedy assures us it is, provided the right ingredients are used and the recipes are carefully followed.

On her travels, mainly in southeast Mexico, equipped with only a folding camp bed, she has absorbed the spirit and ritual that transform simple ingredients into food for the soul. Sometimes she eats at small markets like the one in Chilapa, Guerrero, where she got her first taste of green pozole the most delicious she can remember. Other times she forges ties of friendship with local families, many of which come to trust her so much they let her into their kitchens and share with her their culinary knowledge, handed down from generation to generation. There is always a new recipe to be learned, a new plant to be discovered, a new flavor skulking behind a bend in a country path, a forest or a mountain. Many of these discoveries can be found in the nine books Kennedy has published to date. Oaxaca al Gusto, the last one, contains 326 recipes from Oaxaca, grouped into three mouth watering chapters according to their main ingredient: cocoa, corn and chili. Corn and chili are staples for this ambassador of Mexican cuisine, who grows them on her organic farm in Zitcuaro, Michoacn, where she has lived and worked since 1980. Her house is built out of mud and straw adobe bricks made using a technique that dates back to pre-Hispanic times. Her kitchen is just as traditional, equipped with a jumble of utensils, appliances and ingredients from all over the country, and a wood fired oven essential for her more autochthonous creations. So ancient are some of the dishes in her repertoire that they are fast disappearing in certain regions like the Yucatn Peninsula. When I visited that region for the first time

inTerview diana kennedy

when i visited that region for the first time in 1958, i worked with some women and learned to make dishes that no one makes anymore. im always eager to learn new recipes and techniqUes BUt if were talking aBoUt indigenoUs or ethnic cooking, i prefer the original, she says.

in 1958, I worked with some women and learned to make dishes that no one makes anymore. Im always eager to learn new recipes and techniques but if were talking about indigenous or ethnic cooking, I prefer the original, she says. That doesnt mean Kennedy is averse to marrying regional dishes with fine international wines, or even cooking with them. I once made a mole with champagne and it was delicious, she says. Its like talking to a Mexican Babushka. As she speaks, she concentrates on milling green cheese and tortilla dough on her metate a flat grinding stone used since pre-Hispanic times. Except that Diana has had the foresight to document the recipes so jealously guarded and handed down by word of mouth for centuries. And in doing so, she has ensured their survival. This labor of love has earned her accolades like The Order of the Aztec Eagle (1981) the highest decoration awarded to foreigners by Mexico the Amando Farga Font Award (1991), presented by Mexicos gastronomic press, and the Gold Medal awarded by the Mexican Restaurant Association (2001). She has also been appointed an Academic Researcher by the Mexican Gastronomic Society (1992) and a Member of the Order of the British Empire by Queen Elizabeth II for her work in strengthening cultural ties between Mexico and the United Kingdom. Despite the awards and recognition, Diana Kennedy quietly continues her work, traveling the country in search of new flavors and techniques, learning and cooking to her hearts content. So whats her favorite dish? I have a thousand! she says. n

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Photo kent wang

LITTLE MEXICO IN NEW YORK

if yoUre in new york and fancy a taste of mexico, drop into empelln. owned By acclaimed chef alex stUpak, this restaUrant ploUghs the depths of regional mexican cUisine. by gUstavo archiga
ust a few blocks from Washington Square Park, almost on the edge of the Hudson River, is Empelln, a restaurant that has taken the humble taco to new heights and where the salsa is just the icing on the cake. Empelln represents an evolution; we dont just do tacos and potatoes. Its a comfortable restaurant with less fuss and more food, but its also great for those special occasions without having to dress for the occasion, says Alex Stupak, whose training as a pastry chef has made him especially watchful of presentation.

In Spanish, empelln means shove and thats just what this restaurant aims to do: push beyond the limits, provoke, incite. According to Stupak, when constantly faced with the simple, but profound question What do I want to cook?, a chef should break the obvious boundaries and express what he sees, smells, hears, breaths, senses and thinks in his creations. This sea of sensations encompasses all aspects of life. Empelln isnt about teaching methods, chefs and recipes, says Stupak. Its about showing our customers that by responding passionately to this simple question

What do I want to cook? we can change lives, beginning with our own. Paintings, skulls and effigies of the Virgin of Guadalupe adorn the white walls of Empelln, whose menu is just as Mexican in spirit. Octopus in salsa papanteca, with chile de rbol, chipotle and pumpkin seeds; tuna ceviche with mango and grapefruit; melted cheese with beans and mole poblano are just some of the delicacies youll find. Ptissier Alex Stupak can be proud of this, his first solo experiment, because Empelln has become something of a phenomenon in New York. The first time I traveled to Oaxaca,

gaSTrOnOmy empelln: mexican food in new york

the first time i traveled to oaxaca, i realized that a lot of people in the Us have the wrong idea aBoUt mexican food. i started oUt By trying vegetaBles and herBs and comBinations of flavors that i foUnd fresh and exciting all at the same time. i foUnd myself experimenting with ingredients id never seen Before and feeling like i hadnt felt since i was 18.

56 Negocios i The Lifestyle

ptissier alex stUpak can Be proUd of this, his first solo experiment, BecaUse empelln has Become something of a phenomenon in new york.

Photo kent wang

gaSTrOnOmy empelln: mexican food in new york

alex STuPak Born in Leominster, Massachusetts, 31-year-old Alex Stupak made his first appearance in a restaurant kitchen at the age of 12, having convinced the owner it didnt matter he wasnt old enough to work. His instinct proved right. After graduating from high school with a Certificate in Culinary Arts, he began to take part in competitions, finally winning a scholarship to study at the Culinary Institute of America. Renowned for his innovative desserts, this chef with a keen eye for detail has seen the inside of the kitchens of several top restaurants. In 2003, at the tender age of 23, he was named Best Pastry Chef by Boston magazine and in 2008 he took on and beat Chef Catherine Cat Cora on Iron Chef America. Judge Jeffrey Steingarten, food critic for Vogue magazine, referred to him as an unstoppable front of new ideas. Stupak was invited to the 10th anniversary celebrations of Pujol, the restaurant of acclaimed Mexican chef Enrique Olvera. Two dinners were served and one of the guest chefs was Ren Redzepi of Denmark, co-owner of Noma, which is currently rated the worlds best restaurant.

I realized that a lot of people in the US have the wrong idea about Mexican food. I started out by trying vegetables and herbs and combinations of flavors that I found fresh and exciting all at the same time. I found myself experimenting with ingredients Id never seen before and feeling like I hadnt felt since I was 18, he says. The chefs passion for Mexican food shines through in his lobster with wild corn and aromatic epazote and you can practically taste his admiration in his pit-roast lamb in salsa borracha, a spicy concoction of chile pasilla from Oaxaca, orange juice and mezcal. Our philosophy is that you have to give hungry people something that will satisfy them. The notion that food is like fashion, art or music doesnt sit well with us, because we dont want to be susceptible to the fickleness of trends. At Empelln we cook and eat what we love, says Alex, adding that food is like that initial spurt of passion that leads to artistic invention and then dissipates with success and ubiquity. But all these theoretical concepts fade into oblivion beside the long list of alcoholic beverages Empelln offers to drown its customers sorrows: a fine selection of wines and cocktails is complemented by several brands of tequila, a wide choice of mezcales from Oaxaca and Zacatecas, and sotol, a spirit distilled in Chihuahua. You can also accompany your meal with a bottle of Cucap beer from Baja California, one of the first microbrews to be marketed with the financial assistance and perseverance of Mexican entrepreneurs. And for dessert, the Big Apple metamorphoses into a village square in Mexico, serving up fritters, churros strips of fried dough sprinkled with sugar and cinnamon and hot, milky Mexican chocolate. n

58 Negocios i The Lifestyle

Photos archive

carla morrison

SIRENS OF THE LYRICAL LANDS

by gUstavo archiga

the fishpond. Carla Morrison, from the arid lands of Baja California, is the youngest of the bunch. Lhasa de Sela, of Mexican and American ancestry, died of cancer in 2010, but YouTube has mounted a shrine to her music, an exotic mix of folk and rock. Mexico Cityborn Magos Herrera is the perfect accompaniment to a night of martinis on a cool terrace in some colonial city. And Denise Gutirrez, vocalist of Hello Seahorse!, has made waves with her powerful, operatic voice. Like Ulysses in The Odyssey, the songs of these sirens have bewitched listeners of the MP3 era with a captivating fusion of traditional folk rhythms and more contemporary indie, jazz and electronic beats. Essential listening for anyone whos interested in whats happening on Mexicos music scene today. nOrTHbOund Carla Morrison has returned to her native Baja California, where she mesmerizes audiences with her sequences and loops, keyboard effects and electroacoustic guitar. You can feel the melancholy and emotion of a highly innovative, vanguard and entertaining musician who suddenly lets rip sparks of melody and joy, as one critic describes her sound.

he pop invasion has wiped them off Mexicos mass music map a blessing in disguise some music critics might say but somehow their voices have been heard, rising above deserts and crossing seas before making the final leap out of

celestial voices aBoUnd in mexico, BUt theirs have moved listeners the world over. carla morrison, lhasa de sela, magos herrera and denise gUtirrez. all mexican songstresses of export qUality.

muSic contemporary mexican songstresses

uP: lhasa de Sela, rigHT: magos Herrera

In 2006, after dropping out of the School of Music at the University of Arizona, she formed Babaluca, a small, bilingual indie band. Shortly afterwards, in 2008, they were named Best Indie Band of Arizona at the Stylos Awards in Phoenix, Arizona. Three years later, Carla released her first solo album, which includes the track Tragos de Amargo Licor by norteo singer Ramn Ayala.
www.carlamorrison.net

deniSe guTirrez (a.k.a. lO blOndO, vanilla face and dniS) Representing a new breed of iPod-era musicians whose tribes have tried to put as much distance as possible between them and the Rock in Spanish boom of the 1980s and 90s, Denise Gutirrez is the vocalist of Hello Seahorse!, an indie pop band formed in Mexico City in 2005. The band has progressed in leaps and bounds from the nave sounds and lyrics of its early days to a more mature concept, especially Denise, who appears on Profundo Carmes, produced by Mexican orchestra conductor Alondra de la Parra. Denise shares the mike on this album with Natalia Lafourcade and Ely Guerra, two other Mexican songstresses of export caliber. Lejos. No Tan Lejos, the latest album released by Hello Seahorse!, was produced by Mony Mark, who has worked with The Beastie Boys, The Red Hot Chili Peppers, Beck and Yamil Razec.
www.helloseahorse.com

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Photo archive

denise gutirrez (in the middle) is the vocalist of Hello Seahorse!

THe wailing wanderer The most haunting voice of all is perhaps that of Lhasa de Sela. Her father, Mexican, was a Spanish teacher and writer; her mother, from the US, was a photographer by profession. Its no wonder Lhasa was already singing in the cafes of San Francisco by age 13. At 19 she traveled to Montreal, where she met Yves Desrosiers and went on to record La Llorona with him. The album sold over 700,000 copies outside Mexico. A bizarre mix of rock, traditional Mexican folk music and Klezmer, a genre associated with the Jewish tradition, Lhasas howls and wails have the power to evoke emotions that run the whole gamut. She wrote most of her songs outside Mexico: layer upon layer of folk, country, gospel, blues, pop and flamenco, laced with personal, often ironic lyrics sung in perfect Spanish, French and English. Her voice can be heard on soundtracks to TV series like The Sopranos, the documentary I Am Because We Are, the surreal comedy Cold Souls, and the John Sayles drama Casa de los Babys. Lhasa died of breast cancer in 2010. She was only 37.
www.lhasadesela.com

Pure Jazz Magos Herrera hails from Mexico City, but her career hit its first high note in Italy in 1988, after she graduated from the Musicians Institute in Los Angeles. Considered one of the purest voices of Latin jazz, whose tessitura adapts perfectly to Portuguese, Spanish and English, Magos has six records under her belt. This Mexican siren has devoted her energies to polishing her craft and the quality of her live performances, gracing venues like the Lincoln Center in New York, the Kennedy Center in Washington, Chicagos Millennium Park and Madrids Galileo Galilei concert hall, as well as international jazz festivals in Montreal and Barcelona, to name just a few. She also appears on music critic Tom Moons list of 1000 Recordings to Hear Before You Die: A Listeners Life List. It was just over a decade ago, in the spring of 2000, when Magos released Distancia/Sunnyside, a record that topped the iTunes jazz chart for several weeks running and that was nominated for a Grammy. To commemorate the Bicentenary of Mexican Independence, she recorded Mxico Azul, a tribute to the music of the 1930s and 1940s that is starting to lure listeners from further afield. n
www.magosherrera.com

arcHiTecTure cineteca nacional

NEW HOME FOR FILMS

the national coUncil for cUltUre and the arts (conacUlta, for its acronym in spanish) has annoUnced that the cineteca nacional del siglo xxi proJect has Been awarded to roJkind arqUitectos.
he project includes the total renovation of the complex, originally built as the Composers Square in 1984 by Manuel Rocha and transformed on several occasions since becoming the Nations Film Archive and Film Institute. In addition to the existing screening rooms, the complex currently has five archive vaults, four of them housing a collection of more than 15,000 film classics of world cinema in 35 and 15 millimeter formats. The fifth vault houses iconographic material, including posters, photographs, slides, negatives and video. The vaults surface will increase from 1,500 to over 2,200 square meters, in order to house 50,000 more reels of film. The space for the gallery and the digital restoration lab will have a surface area of 500 square meters and the offices, once reorganized, will be reduced from 1,900 to 1,800 meters. The new project will add four new screening rooms, for a total of 1,000 extra seats, in addition to renewing the existing screening rooms whose total capacity will be increased from 2,050 to 3,050 seats. A six-level above grade parking will be built with a capacity for 528 cars, compared to the current 422. This will free up 70% of the area now occupied by parking. That space, besides allowing the construction of the new screening rooms, will allow for an outdoor amphitheatre with a capacity for 700 spectators, a public park and a central public plaza. The National Film Archives will increase its built area from 20,000 to almost 29,000 square meters, of which 7,000 are destined to public spaces. The purpose is to generate a new comprehensive cinematic experience and more programming options.
www.rojkindarquitectos.com

Photos courtesy of roJkind arQuitectos

62 Negocios i The Lifestyle

Photos archive

LOCATION: MEXICO
since the 1950s, mexico has attracted film prodUcers and directors from aroUnd the world, to whom the coUntry offers many Benefits, from competitive costs to amazing natUral and historical locations.

ilmmaking around the world seems unstoppable, and films produced in Mexico dont seem to stop earning awards and positive reviews either. The country shares great directing talents with the world, such as: Alejandro Gonzlez Irritu Amores Perros, 21 Grams, Babel and Biutiful, who in 2006 became the first Mexican to

be nominated for an Academy Award for Best Director; Guillermo del Toro Pans Labyrinth, Hellboy and The Hobbit (coming soon) ; and Alfonso Cuarn Y tu mam tambin, Harry Potter and the Prisoner of Azkaban and Children of Men. Every year, thanks to a prolific national film industry, more and more foreign productions find in Mexico the perfect location,

the appropriate infrastructure, technology as well as the technical and professional experience needed for feature-length films, short films, TV adds and music video production. For nearly 60 years, Mexico has served as a film set for the most diverse foreign films. The beauty of its landscape and cities of unique architecture have provided the at-

film induSTry location: mexico

in the 1960s, directors like John hUston and sam peckinpah foUnd the perfect settings for their westerns. those were the days when actors like paUl newman and John wayne were enchanted By the natUral BeaUty of the places where they filmed.

mosphere for films of all genres, from classics like Susana (1951) or A Woman Without Love (1952), directed by Luis Buuel, to large scale productions like Titanic or the action thriller Vantage Point. In the 1960s, directors like John Huston and Sam Peckinpah found the perfect settings for their westerns. Those were the days when actors like Paul Newman and John

Wayne were enchanted by the natural beauty of the places where they filmed. Shooting films in Mexican soil has turned into such a positive experience that it has even boosted tourism. For instance, the 1964 film The Night of the Iguana, filmed on Mismaloya Beach along the Pacific Coast, made such an impression that the location soon became a celebrity holiday favorite.

Mexicos reputation as filmmaking destination has been built upon beauty that extends throughout its territory, as well as its great variety of climates, vegetation, archaeological zones, cities and environments. All these benefits made the setting for films like Troy (2004), starring Brad Pitt and Orlando Bloom and directed by Wolfgang Petersen, possible. This was also the case of Apocalypto,

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Photos archive

directed by Mel Gibson and shot in tropical climates among the magnificent Mayan ruins in Yucatn; and the Orson Welles classic The Lady from Shanghai (1948), mostly shot along Acapulcos bays. The countrys vast and diverse settings in the country have permitted filmmakers to faithfully reproduce the look and feel of innumerable cities around the world, from a dense atmosphere in Ecuador for Crnicas (2004), to the Chilean jungles in Missing (1982) and the Colombian adventurous scenery in Romancing the Stone (1984). In Baz Luhrmans Romeo+Juliet (1996), the Chapultepec Castle, the beaches of Veracruz and a church in Mexico City recreated the Italian city of Verona achieving the set for this modern version of Shakespeares classic. Rosarito Beach in Baja California turned into the frosty blue waters of the North Atlantic for 1997s Titanic directed by James Cameron. Whereas in Pete Travis Vantage Point (2008), the film crew found everything needed to reconstruct Plaza Mayor in Salamanca, Spain, in Mexico City. Since the 1980s, the northeastern state of Durango has been known as the Land of

Cinema due to the wide range of films shot there. Productions in Durango include Caveman (1981) starring Ringo Starr; Revenge (1990) with Kevin Costner; Matador (2005) with Pierce Brosnan, and Bandidas (2006) with Penlope Cruz and Salma Hayek. This has also been the perfect location for television films, such as the US production The Librarian for TNT and Hispanic soap operas like Sin tetas no hay paraso (Without Breasts There Is No Paradise), which has invested more than 300,000 usd in the state. According to Kevin Trehy, Warner Brothers executive producer, Mexicos true value as a location is that it benefits the communities where these productions take place by allowing local businesses to supply their own services and products. In addition, some film shoots are also willing to employ residents for multiple tasks. Production costs are reduced by one-fourth in Mexico without diminishing any quality. An example is the film Troy, which contributed with 33 million usd to the economy of Baja California. Thus, Mexico has become a live set for world cinema, enriched by the talent and capability of its people. n