THE AEROSPACE INDUSTRY IN MEXICO

1
THE AEROSPACE INDUSTRY IN MEXICO

• Dallas, TX and Tulsa, OK, May 2006

2
MEXICO IN THE WORLD

• Mexico is rank thirteen as world exporter
• Firts exporter in Latinamerica
• USA Mexico total trade in 2005 was 290,000
  millions dlls.
• Second commercial partner of USA

3
MEXICOS ADVANTAGES FOR FOREIGN INVESTMENT

• Open economy

• Strategic location

• Network of free trade agreements with 42
  countries

• Investment protection agreements

• Investment grade

• Sectors with high potential

• Competitive labor force

• Management of economic policy

4
FREE TRADE AGREEMENTS
EU July 1, 2000.
EFTA November, 2000
NAFTA Jan. 1, 1994.
EAA Japan 1 April 2005
FTA Israel July 1, 2000
NT FTA (North Triangle) Guatemala, Honduras El
Salvador Jan. 1, 2001.
FTA Colombia Venezuela (G3) Jan. 1, 1995.
FTA Nicaragua July 1, 1998.
FTA Bolivia Jan. 1, 1995.
FTA Chile Jan. 1,1999.
FTA Costa Rica Jan 1, 1995.
5
AEROSPACE INDUSTRY
6
MEXICO AND THE AEROSPACE SECTOR
AIRCRAFT AND AIRPORTS

• Mexican fleet has 7,200 aircraft 1,400
  commercial, 5,300 private and 435 official.
• Expanding market in helicopters and executive
  jets.
• 84 airports (55 international and 29 national).
• All airports are operated by private sector.
• Mexico City airport has the largest operation.
• Others important airports are Toluca (State of
  Mexico), Guadalajara, Monterrey and Tijuana.
• Passengers in mexican airports in 2005 were 47
  million with a yearly growth of 6 .

Source SCT /ASA
7
EXPORTS OF AEROSPACE PRODUCTS

• In 2005, mexican exports of aerospace components
  and engineering designs total over 600 million
  of dollars.
• Mexico is the 9th supplier of components to the
  US market.
• Lower operation cost in Mexico and experience in
  automovile and electrical - electronic sectors
  should guarantee the success in the aerospace
  sector.

8
MEXICO EXPORTS OF AEROSPACE PRODUCTS
Turbine parts assembly facility
9
AEROSPACE PRODUCTS MADE IN MEXICO

• Engine components
• Harnesses and cables
• Components of landing systems
• Plastic injection
• Heat exchangers
• Precision machining
• Audio video systems
• Electronic components
• Fuselage insulation

10
AEROSPACE INDUSTRY IN MEXICO
67 COMPANIES 10,000 WORKERS

• Aerotech
• Talleres Diva
• Carlisle
• Delphi Connection Systems
• Labinal

• Honeywell
• Gulfstream
• Rockwell Collins
• Lockheed Martin
• Northtrop Grumman
• Thayer Aerospace
• Chromalloy Aerospace
• GKN Aerospace
• The Mexmil Co.
• CD Aerospace
• Orcon Corp.
• HST
• Volare Engineering
• Empresas L.M.
• Hartwell Dzus
• Pacmin
• Delphi Connection Systems
• Leach International
• Crissair Inc.

• Ketema
• Unison

• Frisa (Wyman Gordon)
• Evco Plasticas de México
• Jaiter
• Kaydon Corp.

• ESCO
• Chemresearch Co. Inc.
• Parker Hannifin
• Goodrich
• Smith West
• GS Precision
• Sargent Control Aerospace
• Precision Aerospace
• Harco
• Vermillion
• Aerodesign
• Aerostar

• Sermatech
• Tighitco

• ITR
• Bombardier

• Motodiesel Mexicana

• Falco
• PCC Airfoils, Inc
• Seal metal products

• Partes Aereas Concorde
• Representaciones, Asesoria

• IKTAR
• AVNTK
• Competitive Global de México
• Global Vantage

Source Ministry of Economy
11
ADVANTAGES TO MANUFACTURE IN MEXICO

• Mexico has competitive advantages in metalmecanic
  and electrical sectors, among others.
• Manufacturing in Mexico offer competitive
  position by
• Lower operation cost.
• Less expensive labor cost.
• Hight qualified staff (65,000 new engineers a
  year).
• Political and economic stability.
• Proximity to US market.
• NAFTA, no export and import duties
• Protecction of Intelectual Property Rights.

12
ADVANTAGES TO MANUFACTURE IN MEXICO

• Hamilton Sundstrand, Honeywell, GE, Snecma among
  other companies have important projects in
  aerospace supplier base in Mexico
• GE, Bombardier Honeywell are making Aerospace
  Engineering design in Mexico.
• Most companies adopted Quality Systems according
  to clients requirements (most of them ISO 9000).
• Many companies in Mexico have the AS 9000
  registry.
• 16 companies have been approved as NADCAP.

13
FABRICATION CAPABILITY IN MEXICO

• US companies that have being working with Mexico
  in the last 3 years have found opportunities in
  the following components
• Turbines
• Rings machinning, valves, electronics, filters,
  buckets, gears, shafts, air and fuel cooling
  lines and turbine maintenance.
• Components of aircraft dashboards
• Harnesses, printed circuit boards and cabinets.
• Other components
• Jigs and fixtures, and special heat treatments.

14
FABRICATION CAPABILITY IN MEXICO

• Fuselage
• - Special paints, seats, carpets and other
  parts.
• Manufacturing processes
• - Forging, die cast, machining with 4 and 5
  axels, stamping and plastic injection.

15
BANCOMEXT SERVICES

• Data base Mexican supply companies
• Business meetings in Mexico
• C) Support to investment projects

Bancomext is working in a join effort with the
goverments of the Mexican States.
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TRADE COMMISSION OFFICES

• Nueva York
• Chicago
• Dallas
• Los Angeles
• Miami
• Atlanta
• Houston
• San Antonio

• Vancouver
• Toronto
• Montreal

• United Kingdom
• Spain
• Italy

• Taiwan
• Korea
• Hong Kong
• Singapore
• Tokyo
• Beijing
• Shangai

• Germany
• Netherlands
• France

• Argentina
• Brazil
• Costa Rica
• Chile
• Colombia
• Guatemala
• Venezuela

17
CONTACT US

• www.bancomext.com
• www.investinmexico.com.mx
• Virginia Arteaga, Dallas, Tx., carteaga_at_bancomext.
  gob.mx
• Diana Castaneda, Dallas, Tx.,
• dcastaneda_at_bancomextdallas.com
• Humberto Huerta, Mexico city, hhuerta_at_bancomext.go
  b.mx