Increase investment and industrial market in San Luis Potosí

San Luis Potosí recorded a historic private investment of 8,000 million dollars

The state of San Luis Potosí registered a historical private investment of 8,000 million dollars at the end of 2019. The above, due to the arrival of capital of greater and lesser impact and, as a result, more than 70,000 formal jobs were generated, according with data from the Mexican Social Security Institute (IMSS).

Gustavo Puente Orozco, Secretary of Economic Development (Sedeco), stressed that the automotive sector is one of the main engines of the Potosi economy because of the amount of investments it has, the niche represents 8.7% of the State Gross Domestic Product (GDP) and more 30% of the value of the manufacturing industry.

“We have new challenges ahead, the consolidation of the T-MEC will bring new rules for our economies, we must adapt and be one step ahead, go out and knock on doors to competitive markets and reaffirm the work of the State Government to promote the arrival of companies and jobs, ”he said.

This private investment was complemented with the public one, to carry out works such as

Vesta Park San Luis Potosí development, in the municipality of Villa de Reyes, which covers an area of ​​43 hectares to provide services to companies in different areas and industrial parks in the San Luis Potosí metropolitan area.

The investments have led to the sale of almost all of the 43 lots and the arrival, development, construction and operation of companies to said industrial zone.

In the industrial zone of Matehuala, 19.4 million pesos have been invested.

In the potosina capital, 28 total hectares integrate the new Argo Industrial Park San Luis Potosí, which was designed by the company Argo Construcciones and had an investment of 500 million pesos.

In addition, the IMPRO Americas company will be installed in the World Trade Center II (WTC) industrial park, on an area of ​​227,000 square meters, with the goal that with its high technical development it will allow it to be one of the largest manufacturing niches in the world .

The strengthening of the conditions that facilitate the profitability of the investment and

Boosting the productive sectors that generate greater added value favored the attraction of a direct foreign investment of 4,682 million dollars, which placed San Luis Potosí in tenth place in the country. This investment accounted for a third of the total accumulated in the last two decades.

More than nine companies decided to make new investments in the entity and eleven to expand existing ones, which added to the 89 new plants and extensions. The origin of his investment was from Germany, China, Spain, USA, France, Japan and Mexico.

The investment amounted to 22,407.5 million pesos; This trust resulted in more formal alternatives of employment sources for the four regions of the state, in specialties related to auto parts, electric power, processed food logistics and plastic injection.

This investment stimulated a growth of 6.4% (ITAEE, 2018), higher than the average of 1.7% registered in the country, which placed San Luis Potosí in the fifth national place and first in the Bajío region.

These results allowed expanding capital formation and boosting the dynamism of manufacturing activity, mainly due to the vocation of the Central region with a concerted investment of 64,491.9 million pesos, equivalent to 2.8 times more than what was recorded six years ago. The participation of the automotive industry was the most important component of said investment, representing 61.3% (39,551.1 million pesos) of its total.

EXPORT GROWTH

The technological modernization of the production plant, supported by a highly qualified workforce and adapted to its production processes, maintains a high competitiveness of the products demanded by international markets. What has resulted in a growth of total state exports.

The potosino manufacturing sector is positioned as a strategic axis of exports by participating with 99.6% of the total value.

In particular, during the period 2015 to 2019, the value of industrial manufacturing production registered a growth of 73.4%, which placed the entity in the first national place.

POTOSINE ECONOMY ENGINE

The automotive sector continues to project San Luis Potosí as an important regional, national and international production center for parts and units.

Currently, there are a total of 235 automotive companies in operation (two assembly plants and 233 companies providing auto parts) that generate more than 82,000 jobs.

This activity highlights the inauguration of the first BMW plant in Mexico, which has the capacity to build 175,000 annual units of the new generation 3 Series model, which will be exported to 40 markets. In addition, the plant has a test track, assembly areas, logistics, painting, body building, analysis center and a training center. 50% of the suppliers of the plant are national, 45% of the North American region and 5% are Asian suppliers.

NEW INDUSTRIAL POLES

Industrial growth in the remaining three regions of the state benefited from the gradual expansion of physical infrastructure, services and the improvement of manufacturing labor, which allowed for the conclusion of 7,104 sources of work. In the Huasteca (Tamazunchale) the 560 megawatt Macquarie Infrastructure & Real Assets Mexico thermoelectric plant was concluded; in the Media (Rioverde) the Rioverde Photovoltaic Solar Farm project is being developed; and in the Altiplano, the Toyoda Gosei Automotive Sealing Mexico plant, which will begin its production of automotive seals in 2020 with potosine labor.

The amount of investment made in the downtown area includes companies such as: Grupo Fondería, Gestamp San Luis Potosí, Impro Industries México, Iberdrola Renovables Centro, Macquarie Infrastructure & Real Assets Mexico, Valeo Sistemas Eléctricos, TransCanada, MetalTechnologies Components, among others.

This sum of efforts consolidated manufacturing activity as the main axis of growth of the San Luis Potosí economy, with an estimated 27.7% share in the total real GDP of the state.

The strengths that boosted these results were investment and exports, mainly in the automotive, machinery and equipment, and household appliances sector, which opens up opportunities for the different productive activities carried out in the entity.

EXPECTATIONS

The head of the Sedeco indicated that in 2020 it is estimated that General Motors, BMW and the more than 230 automotive supply companies that operate in the entity, reach a production of 800,000 light vehicles.

Exports in 2015 were 9,500 million dollars, for this year the figure is expected to exceed 16,500 million dollars, that is, almost 75% growth.