The industrial development of the Aerospace Sector in Mexico Eduardo J' Sols

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The industrial development of the Aerospace
Sector in Mexico

Eduardo J. Solís
Mexico, D.F and Toluca, Mex April 08th, 2005
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In Mexico, we have been doing our job when it
comes to foreign trade
Sweden
Norway
Canada
Finland
12 FTAs 43 Countries
Denmark
Iceland
17 APPRIs
United States

Netherlands
United Kingdom
Germany
Cuba ACE 51
Ireland
Liechtenstein
Honduras
Belgium
Austria
Nicaragua
Luxemburg
Switzerland
Guatemala
Portugal
Costa Rica
El Salvador
Mercosur (ACE 54 Marco Agreement) (ACE 55
Automotive agreement)
France
Spain
Venezuela
Italy
Greece
Colombia
Japón
South Korea
Israel
Ecuador AAP 29
Brazil ACE 53
Peru ACE 8
Paraguay AAP 38
Bolivia
Uruguay
Chile
Argentina ACE 6
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We have also being doing our job in the
Macroeconomic area
Interest Rates
Source INEGI
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this is reflected on the inflation rates
Annual Inflation Rates
Source INEGI
5
These results can be also appreciated in the
international financial markets...
186 (Feb.13)
Source JP Morgan
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Giving Mexico an improved rating
5437
522
186
Source JP Morgan
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The link between the Mexican and the US
industrial activity is evident
Industrial Production, va, pm3m
10
8
USA
Mex
6
4
2
0
-2
-4
-6
Jul-99
Jul-00
Jul-01
Jul-02
Jul-03
Oct-99
Oct-00
Oct-01
Oct-02
Oct-03
Jan-99
Apr-99
Jan-00
Apr-00
Jan-01
Apr-01
Jan-02
Apr-02
Jan-03
Apr-03
Jan-04
Apr-04
Source INEGI
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• As a result of this strategy, Mexico is now an
  exporting power. In 2004, Mexico consolidated
  its position as the second largest trading
  partner of the Unites States only after Canada.

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• Mexico is by far the largest exporter in Latin
  America
• Mexican exports double the total exports of
  Brazil and Argentina together.

• Mexico has a VAST experience exporting. There
  are more than 40,000 exporting companies in Mexico

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• Mexicos experience and success in the
  development of the automotive and
  electrical-electronic sectors guarantee the
  success in the development of the aerospace
  industry in our country.

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Manufacturing engine components, harnesses and
cables, components of landing systems, plastic
injection, heat exchangers, precision machining,
airfoil repairs, audio and video systems,
electronic components, fuselage insulation,
interiors, among others.Engineering design of
aeronautical components (for military and civil
applications)
Mexico is a strategic location for the
development of the Aerospace industry
There are almost 60 aerospace companies already
established in Mexico
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Industria Aeronáutica Ubicación geográfica
Empresas LM
Orcon
Thayer
Volare Engineering
Baja California (27)
Northtrop Grumman
Leach International
Hartwell Dzus
Parker Hannifin
GSP
Crissair
Pacmin
Precision Aerospace
Cubic
Tolerance Master Vermillion
HST
Chemresearch Esco Turbine Technoloies Sargent
Controls Aerospace
Lockeheed Martin
Ensambladores Electrónicos de México
Seal and Metal Products
Cadinmex
Vision and automation
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• Mexico can successfully compete in Manufacturing
  and Engineering design of aeronautical components
• GE, ITP and Honeywell are already doing
  aerospace engineering design in Mexico

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• We are training our technicians to improve their
  skills in the manufacturing processes complex
  machining fabrications and forging of metals
  such as nickel, inconel and titanium.

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• Today, Mexican exports of aeronautical
  components and engineering designs total over
  400M USD and employs over 10,000 people in eleven
  states

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• Quality Systems
• Most companies in Mexico have adopted quality
  systems according to clients demands
• We have some good examples of AS 9000 certified
  companies
• For secondary processes we already have NADCAP
  approved companies in our country

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North America Regional Security

• Mexico is a natural partner for the
  manufacturing of aerospace and military
  components sensitive to the US national security
• The Federal Government is currently negotiating
  a bilateral agreement for aerospace safety with
  the FAA (BASA).

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Gracias! Eduardo J. Solís Sánchez Chief of
investment promotion Ministry of Economy
esolis_at_economia.gob.mx (52-55)-57-29-91-07/08