THE REPORT Mexico 2019 Hidalgo
Total Page：16
File Type：pdf, Size：1020Kb
THE REPORT Mexico 2019 Hidalgo OVERVIEW EDUCATION R&D TRANSPORT INDUSTRY ECONOMY LOGISTICS ENERGY INTERVIEWS www.oxfordbusinessgroup.com 25 YEARS OF EXCELLENCE CONTENTS HIDALGO 2019 5 INTERVIEW Editor-in-Chief: Oliver Cornock 23 Camilo Serrano, General Manager for Mexico, Regional Editor, The Americas: Harry Atlas Renewable Energy van Schaick Editorial Manager: Alejandro Fernández INDUSTRY Regional Director, The Americas: 24 Investment destination Maria Merono Private funds promote competitive industry Country Director: Stéphanie Brua Project Coordinator: Yuridia Durán Group Managing Editor: Laura Nelson TRANSPORT & LOGISTICS Chief Sub-Editor: Tim Owens 27 At the crossroads Deputy Chief Sub-Editors: Elise Reid, Improved connectivity attracts logistics parks Robert Terpstra Senior Sub-Editors: Jennifer Ma, and terminals Dominic Mealy Senior Sub-Editor, Digital: John Gray Writer and Editor, Digital: Alex AGRO-INDUSTRY Pichaloff Bottom up 29 Cultivating opportunity Sub-Editors: Sheri Cavazos, Teresa Meoni, Kayla Moser, Morgan Soares- Page 12 Agro-industry primed for growth as market Astbury, Lizzie Waymouth expansion and large investments come into The state government has worked to facil- Analyst: Olly West effect itate private companies and investment, Head of Research: Susan Manoğlu launching a package of reforms designed Editorial Researchers: Jade Currie, INTERVIEW Kasia Kugay, Beatriz Trigueros to ensure that being next door to Mexico City 31 Cassiano De Stefano, CEO, Grupo Modelo is an asset for the state and its people. State Creative Director: Yonca Ergin Senior Art Editor: Sara Proserpio authorities have worked to enhance Hidal- INTERVIEW Art Editors: Catherine Celeste, Zahra go’s position through its interdependence Rashid 32 Elvira Noriega, President, National Chamber of Junior Graphic Associate: Babylynne with the capital by tapping into its logistics Industry Pachuca B Cruz capabilities and development in key sectors. Illustrations: Shiji Liang Logistics & Administration Manager: PHARMACEUTICALS Burçin Ilgaz 33 Big on investment Logistics Executive: Marly F Gimeno OVERVIEW The state has proved attractive to Logistics Associate : Will H Mamatra 6 State of transformation pharmaceutical and chemical companies Efforts to improve the business environment making both large and small investments have attracted attention in both traditional and new sectors ICT 34 First things first INTERVIEW Telecommunications infrastructure is 11 Omar Fayad Meneses, Governor of Hidalgo prioritised to support economic development ECONOMY TOURISM 12 Bottom up 35 A short drive away Emphasis on investment aimed at encouraging Tourist attractions benefit from the state’s inclusive growth proximity to Mexico City BUSINESS CLIMATE R&D 16 Regulatory revamp 36 Research refined The authorities are ramping up efforts to Innovation requires an approach that joins improve the business climate and attract academia, industry and government investment SMEs INTERVIEW 37 A helping hand 17 José Luis Romo Cruz, Executive Secretary of Support for local small and medium-sized Public Policy, State of Hidalgo enterprises through funding and certification INTERVIEW INTERVIEW 18 Sergio Vargas Téllez, Secretary of Economic 38 Edgar Espínola, President, Business Development, State of Hidalgo Coordinating Council of Hidalgo ENERGY & UTILITIES EDUCATION 19 Virtuous circle 39 Talent retention Federal government supports private Promising educational offerings and investment to boost output and leverage programmes help to keep talented graduates position as an energy exporter in the state Bloomberg Terminal Research Homepage: OBGR‹GO› THE REPORT Mexico 2019 6 HIDALGO OVERVIEW The state’s capital, Pachuca, is located 90 km away from Mexico City State of transformation Efforts to improve the business environment have attracted attention in both traditional and new sectors In recent years Hidalgo Hidalgo – officially known as the Free and Inde- MXN10bn ($517.1m) Juandhó combined-cycle power has seen several major pendent State of Hidalgo – is named after Miguel plant, which began construction in December 2018. investments from both Hidalgo y Costilla, one of the leaders of the Mexican Contrary to the trend elsewhere in Mexico, US Mexican and international firms, including $723.9m independence movement. With an economy tradi- investment in Hidalgo has fallen to less than 50% of to build a brewing and tionally based on mining, Hidalgo had lagged behind total FDI. However, the state received funding from bottling plant, and $517.1m some of Mexico’s more prosperous and dynamic a variety of other sources, with countries in Asia, to construct a combined- regions. However, the state government has actively Europe and South America making” up the remainder. cycle power plant. sought to foster growth in new sectors, develop infrastructure and create a more business-friendly In the first three years of the new regulatory framework. As a result of these efforts, administration the state received $2.8bn it has recently recorded growth and foreign direct in private investment, a considerable investment (FDI) figures that exceed the national increase on the $1.1bn recorded over average. Hidalgo also has the advantage of being the first 29 months of the previous close to Mexico City, the fifth-largest metropolis administration in the world and the most-populous city in North America, making it a strategic location for interna- ” tional businesses to establish themselves. GEOGRAPHY & CLIMATE: Hidalgo is the 26th larg- INCREASED INVESTMENT: Under the new admin- est of Mexico’s 32 federal states, accounting for 1.1% istration led by Omar Fayad Meneses, the state of the country’s total landmass. The state’s capital, governor, Hidalgo has seen record-breaking levels Pachuca, is located 90 km away from Mexico City. of investment. In the first three years of Fayad’s Hidalgo has a varied topography; although it is home term – between September 2016 and September to one of the highest villages in the country, Real 2019 – the state received MXN53.5bn ($2.8bn) in del Monte, which sits 2718 metres above sea level, private investment. This is a considerable increase its lowest region, San Felipe Orizatlán, is around compared to the MXN21.2bn ($1.1bn) recorded over 175 metres above sea level. Hidalgo borders six the first 29 months of the previous administration. other states: San Luis Potosí to the north, coastal This figure includes a number of major invest- state Veracruz to the north-east, Puebla to the ments from both Mexican and international compa- south-east, Tlaxcala and Mexico to the south and nies. In November 2017 Grupo Modelo, the Mexican Querétaro to the west. The climate is generally mild, arm of the world’s largest beer manufacturer, AB with an average temperature of 16°C and average InBev, announced that it would invest MXN14bn annual rainfall of 800 mm. However, there are sig- ($723.9m) to build a brewing and bottling plant in nificant weather variations across Hidalgo due to There are significant Apan, in the south of the state. The plant opened differences in altitude. As a result, a wide range of weather variations in March 2019 and has the potential to produce agricultural produce can be grown in the state, from across Hidalgo due to the 2.4bn litres of beer at full capacity, making it the maize to the agave plant. differences in altitude. As second-largest brewery in the world. PRE-COLONIAL BACKGROUND: Hidalgo has been a result, a wide range of agricultural produce can This remains the largest private investment to inhabited by humans for millennia, most likely due be grown in the state, from ever be made in Hidalgo and was followed by several to its year-round mild climate. The oldest artefact maize to the agave plant. other significant announcements, including the found in the area is an axe dating back to 11,000 www.oxfordbusinessgroup.com/country/mexico HIDALGO OVERVIEW 7 BCE. The archaeological site near Tula, believed to be the prehistoric capital of the Toltec tribe, was the most prominent city in the region after the fall of Teotihuacán in the 6th century. The settlement benefitted from the presence of the mineral obsid- ian in local rocks, which was a precursor to Hidalgo’s strong link with mining activities. MINING: Hidalgo’s mines opened shortly after the first Europeans arrived in the area, with Spanish colonisers wishing to send treasures back to their own country. The first silver deposits were discov- ered in April 1552 near Pachuca and Real del Monte. Hidalgo soon became a key centre for mining, particularly after Pachuca-based Spanish merchant Bartolomé de Medina discovered the patio process for extracting silver from ore using mercury amalga- mation in 1554. This was a significant advancement for the industry, and the technique went on to be used across the world for the next 300 years. However, the industry also experienced some difficulties. In the 1720s the mines in Pachuca and Mining has been an important part of Hidalgo’s economy since the first silver deposits were found in 1552 Real del Monte were flooded and remained largely out of use. Two decades later they were drained and that have a distinctive English style, including the reconditioned, which brought about another mining capital city’s Monumental Clock, which has machin- boom. According to historical records, around 7m ery identical to that of London’s Big Ben. The miners pesos of pure silver were produced by the state also brought football to Mexico; Pachuca FC was the in this time. In 1851 the discovery of the Rosario first football club in the country, founded in 1892. mine in Pachuca brought the region’s largest min- However, the English ownership of the mines was ing boom. As a result, the population of the city relatively short-lived. The Gentlemen Adventurers’ increased from 4000 in 1850 to 15,000 in 1869. Company sold up in 1849, having failed to make CORNISH INFLUENCE: One of the most significant enough money to justify their investment. Never- structural impacts of the 1810-21 Mexican War of theless, many Cornish miners continued to work in Independence was the partial destruction of the the area in the subsequent years.