Japanese tire manufacturer Bridgestone is to spend $81 million building a carbon black processing plant in Mexico. The plant, to be located in the port of Altamira, in the northern state of Tamaulipas, will boost the company’s global production and is due to be operational by June 2008.
Category: Regions
Posted inDaily Brief
Gruma Expands Into Russia
Mexican company Gruma, the world’s largest manufacturer of tortillas, is to build two plants in Russia for an initial cost of $100 million. The plants are located in Moscow and will serve that region as well as northern Germany. Gruma already operates in Latin America, the US, Europe, and Australia. Last August it opened a plant in China and plans to expand its operations in Asia as well as looking at moving into Africa.
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Colombian Energy Firms Invest In Peru
Colombia’s state-owned electricity company Interconexión Eléctrica (ISA) and state-run Empresa de Energía de Bogotá (EEB) have bought a stake in Hydro-Quebec’s Peruvian subsidiary Consorcio TransMantaro. The companies paid $67 million for the 57% share in the Canadian company’s subsidiary. ISA is Colombia’s largest energy provider.
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Ecuador To Auction Ex-Oxy Assets
Following the seizure of Occidental Petroleum’s (Oxy) assets in Ecuador last week, the government has said it is considering auctioning off the rights to exploit the oil fields previously run by the US oil company. A government spokesman said Ecuador was keen for state-run oil companies in the region such as Chile’s Enap to bid for the rights. The oil fields in Block 15, which were seized from Oxy by the government, are currently under the control of state-owned oil company Petroecuador. However, the government says that the company does not have the technology or the resources to run the oil production in the fields.
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Mexico Investment Down 20%
Mexico attracted 20% less foreign direct investment (FDI) in the first quarter of this year compared with the same period last year, according to government figures. The ministry of economy announced that FDI totaled just over $3 billion between January and March, with 89% directed into manufacturing industry. Most of the funds invested came from the US (98.7%). The figures do not include foreign M&A capital in Mexico.
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Bolivia To Announce Mutún Winner End-May
Bolivia is to announce the winner of the rights to exploit the $1 billion El Mutún iron ore project in the southeast of the country on May 30. There are currently three bidders involved, according to the mining ministry: Anglo-Dutch Mittal Steel, India’s Jindal Steel and Power and Argentina’s Siderar.
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Mexico Bonds Worst Performing
Mexico’s dollar-denominated bonds have been the worst performing of any emerging market so far this year, as measured by JP Morgan’s benchmark emerging-market bond index. Mexican bonds have fallen 3.5% this year; last year they returned 8.5%, including reinvested interest. Analysts say the lackluster performance is due to uncertainty surrounding Mexico’s presidential elections on July 2.
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Iusacell Extends Swap Deadline
Mexican cell phone operator Iusacell has extended the deadline of its $350 million debt swap offer until June 1. The company is offering to swap 14 ¼% bonds, due 2006, for new bonds at 10%, maturing in 2013. The offer was originally due to expire on May 18. The swap is part of a larger debt restructuring program. The firm reached an agreement with creditors to restructure $750 million of debt in January, following protracted negotiations.
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Panama Charges Ex-president Alemán With Moneylaundering
A Panamanian judge has ordered the arrest of former president of Nicaragua, Arnoldo Alemán, on charges of moneylaundering. Other family members, including his wife, have also been charged. Panama claims Alemán carried out the illegal activity via the Panamanian banking system to launder almost $60 million of public funds diverted to different bank accounts. Alemán, who governed Nicaragua between 1997 and 2002, has been under house arrest just south of the capital Managua after being convicted of embezzlement in Nicaragua in 2003.
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Chocolates And Fifco Offer To Buy Pozuelo
The food and beverages arm of Colombia’s largest conglomerate, GEA – Nacional de Chocolates – and Costa Rica’s Florida Ice & Farm (Fifco) have made an offer of $205 million to buy Pozuelo, the Costa Rican cookie and juice subsidiary of Spain’s Ebro Puleva. The acquisition will give the buyers around 28% of the Costa Rican cookie market. Pozuelo distributes its products throughout Central America and its acquisition by Chocolates fits with the company’s strategy of consolidating its distribution base in the region.