8 THE JAPAN TIMES MONDAY, SEPTEMBER 16, 2013 Special Economic Reports 第３種郵便物認可

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kets from Mexican bases.” of Commerce in Mexico. “There place in which to plant a foothold With Mexico’s are still areas for improvement, for their global interests. Attention Japanese investors: ‘This is Mexico’s time’ sector and established logistics and I have no doubt the business With its strategic geographi- infrastructure undergoing continu- he year 2013 marks a land- ous renovation, the country is tak- mark for Mexico-Japan ing center stage as a global export Trelations: commemorating node. Hideyuki Takahashi, director Japanese 125 years of diplomacy and trade general of the Japan External Trade between the nations that is a testa- Organization (JETRO) office in companies — ment to the two countries’ long- Mexico City, explains: “Mexico’s standing commitment to each other trade agreements, coupled with particularly from as strategic and vital partners for its strategic location, make it an the automotive economic growth. That commit- ideal foothold for export-oriented ment was renewed when Mexico’s tech companies. To its north is the sector — have been president, Enrique Peña Nieto, and world’s biggest market, while to its Prime Minister Shinzo Abe held a south are the emerging economies actively investing in summit in in April this year. of Central and South America.” An Strengthening bilateral business extensive network of roads, rail- Mexico.” was at the top of their agenda. ways and ports — linking the Gulf Both leaders highlighted grow- of Mexico and the Pacific Ocean — SHUICHIRO MEGATA ing bilateral trade and an in- — allows Mexico to easily access Japanese Ambassador vestment relationship that is in- demand and production from Eu- to Mexico IN MEXICO EMBASSY OF JAPAN creasingly vibrant and mutually rope and Asia. beneficial. The resulting creation Peña Nieto’s administration has of quality jobs and technology also ultimately achieved something transfer has contributed to signifi- the country hasn’t experienced cant growth for both economies. in some time: political stability. Specifically, Peña Nieto and Abe Having negotiated a pact with the stressed the roles of the continu- country’s two main opposition ing international expansion of parties — the conservative Na- Japanese companies in relation to tional Action Party (PAN) and the the Mexican ’s socialist Party of the Democratic growing presence as a global man- Revolution (PRD) — his Institu- ufacturing center. tional Revolutionary Party (PRI) “Japanese companies — partic- is guaranteed political support as ularly from the automotive sector it aggressively introduces reform WER — have been actively investing in PRO MEXICO in the areas of labor, banking and Raul Gonzalez, Deputy Director of Economic Promotion; Hideyuki Mexico, with auto and auto parts The future is bright for Mexico given its strategic geographical location, growing workforce, and strengthening economy education, while liberalizing the Takahashi, Director General of JETRO Mexico manufacturers having announced telecommunications and energy major projects successively,” re- The vigorous development of from abroad seeking high-quality Ricardo Navarro, president of of an Economic Partnership Agree- sectors. His administration has also relationship between Mexico and cal location and an abundance veals Shuichiro Megata, Japan’s the automotive sector has also treatment at a fraction of the cost the Mexico City Chamber of Com- ment (EPA) in 2004, as Japan had made improving security a top pri- Japan strengthen further in the of resources — both human and ambassador to Mexico. “ positively influenced a number of elsewhere. The country’s logistics merce cites stability in the financial long recognized Mexico’s domes- ority — of particular importance to coming years.” material — as well as high-tech alone has invested $2 billion to other industries, as sourcing for and transport service sectors are sector as a major driver for growth: tic market and export potential. the Japanese business community. Current government reforms manufacturing in the automotive, build a car production plant.” In high-tech manufacturing in elec- benefiting as well. Official data “Mexico has a strong financial sec- “The EPA signed by both countries “The Mexican government has are now geared at making Mexico medical and infrastructure indus- the coming years in Mexico, three tronics, metallurgy and machinery released by the office of Mexico’s tor with $160 billion in reserves, has had a tremendously positive long recognized the importance more beneficial and, at the same tries, Mexico will continue to ex- of Japan’s automakers — , becomes more available. Mexico’s Secretary of the Economy indi- low inflation, and a GDP growth impact for both countries,” says and contribution of the Japanese time, more secure for foreign firms, pand robustly as Japan’s largest Nissan and — are set to increasingly well-regarded medi- cates that, from 2005 to 2013, in- rate that is unmatched in Latin Megata. “Mexico is one of the business community, and is taking and Japanese investment can now trading partner in Latin America. generate thousands of jobs directly, cal tourism industry is growing, vestments in Mexico by Japanese America.” countries with the largest number an active role in making the coun- realize the full potential of what Ambassador Megata speaks for the not counting those that will be cre- as its most internationally well- companies alone have totaled more The robust flow of Japanese in- of trade agreements around the try more conducive for foreign Mexico has to offer. Today, more entire Japanese business commu- ated for the industry’s entire supply known medical centers become than $11.4 billion: much of it in vestment to Mexico is also largely world, and Japan can take advan- investment,” says Koji Ishimatsu, and more Japanese companies are nity, declaring: “This is Mexico’s chain. prime destinations for patients these growing sectors. credited to both countries’ signing tage of this in tapping those mar- president of the Japanese Chamber recognizing Mexico as the ideal time. Pay attention to Mexico.”  Insuring a new crop of drivers From Guanajuato, Mazda makes its global move exico has over 100 mil- ust eight years after Mazda de Orellana adds, “Carrying a Jap- products, they brought in a strong lion people, but less Mexico started commercial anese brand here in Mexico is an after-sales service culture.” M than a third of that num- Joperations in the country, the advantage in itself. In the Mexi- In addition, Mazda had to dif- ber in cars. It is a figure that is company is set to open a full-scale can mind-set, Japanese brands are ferentiate itself from other foreign expected to rise in the next de- production facility in the central guarantees of good quality, high brands in order to grow market cade, due to two main factors: state of Guanajuato with an ini- technology and excellent service. share. With its “Zoom-Zoom” its growing middle class and the tial annual production capacity of There is no doubt that we at Maz- slogan, the company markets its wave of maturing young people 140,000 units. da Mexico are dedicated to up- vehicles in Mexico as sporty, en- now starting to enter the work- “The new factory will symbol- holding these values every day.” joyable cars akin to premium Eu- force. A predicted increase in ize Mazda’s tremendous growth In fact, Japanese auto com- ropean brands. average consumer income should in Mexico’s automotive sec- panies have helped shape many “We make cars for people who lead to an accompanying increase tor within a relatively narrow excellency standards for the enjoy driving,” Orellana says. in consumer expenditure — with time frame,” explains Leopoldo Mexican automotive se ctor. “We have the soul of a sports car owning a car on the top of many Orellana, president and CEO of “Prior to the signing of the North manufacturer, so we don’t make a list. Mazda Mexico. When the plant American Free Trade Agreement cars that just take you from point The excellent prospects for is switched on early next year, the (NAFTA) in 1994, Mexico’s auto A to point B.” a strengthening automotive in- Japanese auto manufacturer will sector was closed, and after-sales Targeting a young demographic dustry has more and more of the officially plant a foothold on its service deficient,” he continues. (company data indicates its aver- world’s largest automotive com- WER way to becoming a major player “Afterward, major U.S. and Japa- age customer is 30 years old), panies maintaining and building Joaquin Brockman Lozano, Director General of Qualitas in both American continents in nese players came in introducing Mazda Mexico currently has a 3 manufacturing facilities in Mex- the coming years. better-quality cars. Along with the percent market share in the coun- ico. In fact, most of the Japanese the best prepared companies in million cars, equivalent to 20 per- try: projected to increase to 4.5 foreign direct investment (FDI) the sector are expected to grow cent of the total market. percent once the new production MAZDA into Mexico is aimed at this sec- the most in the coming years. “We had some difficulties in facility starts. Leopoldo Orellana, President and CEO of Mazda Mexico tor — approximately 80 percent Qualitas is one of those. Start- the beginning, especially with A significant opportunity for of total FDI from Japan. ed in 1994 with only five employ- other well-established players Mazda in Mexico opened up in the largest number of free trade Mexican plant marks the com- The auto insurance sector, ees, today it has over 8,000 agents already in the market,” says Joa- 2005, when Japan and Mexico agreements, allowing us to pen- pany’s first-ever overseas fac- quin Brockman Lozano, director signed an Economic Partnership etrate other markets. It is also tory it will operate on its own. general of Qualitas. “But today Agreement. Among other things, geographically ideal. With ports Coupled with a weaker Japanese we have the largest market share it gradually phased out import du- in the Gulf of Mexico and the Pa- yen, which has added a substan- We are quite optimistic of the in the country, and this is due to ties for cars. For Mazda, Mexico cific, we can access both Europe tial boost to exports from Japan, our service-oriented philosophy. had the potential: adequate and and Asia, while we have the U.S. and the groundbreaking SKYAC- market’s potential, and we are “We are heavily focused on un- improving export infrastructure and Canada to the north and all of TIV technology, which brings the derstanding, and specializing in, and an already established auto- Central and South America in the customer fuel efficiency and low very excited for what the future the Mexican market,” he contin- motive industry. other direction.” emissions without sacrificing per- ues. “We continuously offer new MAZDA “All signs were pointing to Today, Mazda is embarking on formance, the situation for Mazda holds for both our industry and products directly based on con- With Mexico’s growing domestic market, Mazda is driving to Mexico,” Orellana exclaims. the next stage of its global expan- is positive at last.  sumer needs and demands. We increase its presence in Mexico “It is one of the countries with sion plan, as the opening of the www.mazdamexico.com.mx Qualitas. This is the ideal time to understand the market very well, be in this field.” and we are dedicated to provid- ing the Mexican community with the most ideal range of services — JOAQUIN BROCKMAN LOZANO Building a country’s industrial backbone, one building at a time in auto insurance.” Brockman, who’s been with the or over 25 years, Grupo CS strong relationships with its cli- continues. “We have an excel- With the Mexican President En- company since its establishment, has grown from a company ents, its persistence in making sure lent team of architects, engineers, rique Peña Nieto’s administration therefore, is also well-placed all over the country. Building on is also optimistic of the growth of Fspecializing in concrete to meet every specification for cli- draftsmen and builders – many of now opening up the economy fur- to benefit from the coming rush humble beginnings, Qualitas is other markets in the region and slabs, walls and foundations to be- ents’ needs and its well-organized whom come from different cultur- ther to foreign investment, Grupo of more and more vehicles onto now Mexico’s largest auto insur- the potential for Qualitas there. come a major industrial construc- and highly competent pool of al and linguistic backgrounds. This CS expects significant growth in Mexico’s asphalt network. And ance provider — insuring over 2 “We are aiming to consolidate our tion group in Mexico that provides workers. efficient diversity has made us a logistics, automotive and energy in operations in Central America,” infrastructure services across dif- Never limited to the confines of preferred company with whom to the coming years. Brockman stresses. “We are look- ferent sectors. While maintaining his offices, Radoszycki is a hands- work by international firms invest- “The next five to 10 years will ing at markets such as El Salva- its roots as a concrete manufac- on leader who can often be found at ing in Mexico, and has facilitated be very robust in terms of foreign dor and Colombia; both of which construction sites with clients and and eased doing business in the investment pouring into Mexico, have very attractive auto markets engineers. “You have to constantly country for them.” largely due to reform laws aimed and growing populations.” make sure that all aspects of the Grupo CS’s services are as at making the economy more He makes clear that Mexico re- project meet the specific demands diverse as its clients and staff: competitive and enticing to for- mains the focus of Qualitas. “We of your client,” he says. “One big , Procter & Gamble, eign firms,” Radoszycki explains.

owe much of our success to the reason for our company’s success Walmart, Samsung and Pirelli “When big companies enter Mex- WER Mexican community, and we ap- is that firms have confidence in are just some of the high-profile ico, they need to buy or rent land Jacobo Radoszycki, preciate the loyalty of both our turer and installer, the group has us. By consistently delivering our companies on its client roster. and they need buildings. These Director-General of Grupo CS employees and our clients,” he expanded its range of services, and clients’ specifications while main- Currently, the company is work- firms will also bring along their notes. “We are quite optimistic of now provides integrated services taining the highest international ing as a general contractor for suppliers, and they will need dis- industrial and commercial growth the market’s potential, and we are in industrial design, supervision construction standards in quality Calsonic Kansei — an automotive tribution centers. We can offer ser- in the forward-looking economy very excited for what the future and construction across the coun- and safety, we have built a solid subsidiary of Nissan — to build vices in all aspects of the process.” of Mexico, as the country side- holds for both our industry and try. reputation for quality through the a major project that will include The past quarter century has steps the obstacles of the global Qualitas. This is the ideal time to Its director-general, Jacobo Ra- years. a 150,000-sq.-meter production seen the company grow from economic crisis and prepares for be in this field.”  doszycki, attributes the company’s “Another factor in our success plant in the booming central Mexi- humble beginnings to its current increased growth.  www.qualitas.com.mx success to three main factors: its lies is our personnel,” Radoszycki can state of Aguascalientes. role providing the backbone to www.cs.com.mx

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Mexico Business Report

www.worldeyereports.com Vision for growth in medical imaging he relationship between “Most of our products have Japan and Mexico start- Japanese technological input,” he ed 400 years ago,” says continues. “Agfa is a European ‘TAldo Montes, country manager of company, but very open to col- For Japan, it is a Agfa HealthCare Mexico. “With laborations with companies from such a long history, Mexico is still across the globe. Our detectors perfect time to strengthening its ties with Japan. come from Japan, and most parts Mexican President Peña Nieto’s for our robotics come from Japan. invest in Mexico recent visit to Japan is an indica- There is no restriction for us to en- tion of this. For Japan, it is a per- gage in joint ventures with Japa- — a country with fect time to invest in Mexico — a nese companies.” strong potential country with strong potential in Agfa HealthCare’s newest prod- many booming sectors.” uct, called Agility, is its latest pro- in many booming Agfa HealthCare started its op- prietary software for a completely erations about 120 years ago in unified imaging management plat- sectors.” Belgium. Today, the group main- form designed to achieve clinical tains its two global headquarters productivity, improve service- in Germany and Belgium, produc- ability and streamline integration — ALDO MONTES ing DR (direct radiology) solu- efforts across the entire medical Country Manager tions and other computerized radi- imaging sector. Agfa HealthCare Mexico HEALTHCARE AGFA ology products for hospitals. “As part of our future business Already a world-leading com- expansion plans, I consider Mex- expecting to grow at least 10 to to listen to our clients. If we don’t pany in medical imaging, it is also ico a completely open market,” 15 percent in the Mexican market. listen to them, we can produce striving for the leading position in says Montes. “Agfa HealthCare It’s huge growth for Mexico, and sales but cannot create a rela- the Mexican market. “Although Mexico will be the Latin Ameri- I am very excited and optimistic tionship. The secret to growth in we are in a very competitive mar- can pioneer in launching a new for 2014. Mexico is to listen and then create ket, with our young and strong product called Skintell — non- “The key to our success is solutions tailored to our custom- team we are committed to becom- invasive imaging technology for working hard, and respecting and ers’ needs.”  ing the Mexican leader in the next visualizing skin morphology — understanding our customers,” he www.agfahealthcare.com/latam/ one-to-two years,” says Montes. and we are very excited. We are concludes. “It is important for us es/main/ Conditioned for success in the Mexican market exico stands at the conditioning sector, is now a $1 crossroads of the world. billion market in Mexico and is Its innate geographical experiencing a rise in both inter- Madvantage at the midpoint of the est and consumers. Although the Daikin McQuay in American continent, along with personal air conditioning seg- its dynamic economy and cost- ment is still in its infancy in the Mexico has grown effective workforce, are driving country, the industrial and new more international companies to construction sectors are proving by over 300 percent establish both operational head- to be more than enough market since 2010. By 2015, quarters and manufacturing fa- to bolster business for estab- cilities in the country. lished players, as explained by we are expecting to The automotive sector is ex- Masashi Oshimo, vice president pected to benefit the most from of Daikin McQuay Mexico. grow to fully twice the this robust growth — and it rep- “Social priorities are a key resents approximately 80 per- factor in the Mexican market,” size we are today.” cent of total Japanese foreign he says. “More and more Mexi- direct investment in the coun- can people are still getting ac- — MASASHI OSHIMO try. It’s no wonder analysts are customed to needing personal air Vice President labeling the upcoming years as conditioners in their homes, and

Daikin McQuay Mexico DAIKIN MCQUAY “Mexico’s Time.” we see this segment having huge Construction and infrastruc- potential in the coming years. ture development have been the “However, our main focus its his company’s growth to nu- are inviting both incoming and main themes in Mexico’s current now is on the servicing of the merous internal factors as well: established businesses in Mex- agenda. As more international industrial and new construction “Particularly for Daikin Mc- ico to partner with us to fulfill investment interest continues to sectors that have grown tre- Quay, it has also been driven by their air conditioning needs.” focus on the country, a growing mendously,” continues Oshimo. our highly motivated and experi- Daikin McQuay Mexico is number of manufacturing facili- “Due to this influx of business, enced staff, the synergy between the Mexican arm of Daikin In- ties and offices are being built to Daikin McQuay in Mexico has Daikin of Japan and McQuay In- dustries, a Forbes 1,000 com- accommodate the influx of busi- grown by over 300 percent since ternational, and our company’s pany. It provides a wide range of nesses. The concern for many, 2010. By 2015, we are expecting focus on providing the market products tailored to the Mexican Japanese corporations included, to grow to fully twice the size we with highly advanced and inno- market’s need for air condition- is finding the ideal partner ca- are today.” vative products. These are some ing, heating, ventilation, cooling pable of supporting this growth. Oshimo, who has been with of the main competitive advan- and filtration.  One particular industry, the air Daikin for over 20 years, cred- tages of Daikin McQuay, and we www.daikinmcquay.com.mx Anticipating client needs: the key to success o be different is to be successful” is a man- tra to which Yoshihito ‘TTanaka, director general of Cen- Japanese and tro de Distribucion Nikko, strong- ly adheres. With established roots international auto in Mexico since 1972, the com- pany has grown to become one parts companies can of Mexico’s most well-known and trusted automotive spare trust us to build their parts distribution firms among lo- brand in Mexico, cal and international automotive manufacturers in the country. they can count on It began importing used auto parts from Japan, before gradu- us for excellent and ally expanding its product line efficient service.” to include parts from Taiwan and . “We try to anticipate fu- ture demand of a product,” says Tanaka. “For instance, we were — YOSHIHITO TANAKA the first company to import oil Director General

filters from China.” Centro de Distribucion Nikko WER Today, it remains on a continu- ous quest to find new partners and introduce innovative products us for excellent and efficient to the Mexican market. “I travel service. We have a warehouse, frequently to visit trade shows in trucks and a strong sales team Asia,” Tanaka explains. “I am al- — which equips us to offer bet- ways searching for the right part- ter prices and a higher quality ners and suppliers for my busi- of product. ness. “Our focus is not on our “Although there are many auto company’s immediate ben- parts importers today, they only efits, but on our clients’ long- focus on the present,” he adds. term growth,” he continues. “It’s important that I differentiate “We make it a point to invest myself from everyone else in the and promote the brands of our industry. I like anticipating future trusted partners. Sometimes it opportunities and having a long- takes up to 10 years, but we are term plan for the next 10 to 20 willing to invest the time and years.” money to make it a success.” Recently, the Mexican auto- Because of the company’s motive industry has surged sig- commitment to its customers, nificantly, with companies such strong relationships have been as Nissan, Mazda, and forged: and some of them go as Honda increasing investment in far back as 30 years. The strong the country and more auto parts bond between Mexico and manufacturers looking to enter Japan has also positively im- Mexico. pacted the company’s develop- As the opportunities continue ment. Looking ahead, Tanaka’s to grow in Mexico, Centro de Dis- target is to achieve 10 percent tribucion Nikko has positioned it- growth every year for the next self as an ideal distribution part- five years. ner to auto parts companies, and “We have a strong relation- a major supplier to automotive ship with Nissan and Toyota, as manufacturers. well as other manufacturers,” “Japanese and international he says. “Anticipating their auto parts companies can trust us needs, we are already importing to build their brand in Mexico,” new parts for them.”  Tanaka says. “They can count on [email protected]