Doing Business In Mexico

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Aerospace

 

Success Story

Trac Precision Machining, part of the Trac Group Ltd, started manufacturing its turbine blades for commercial jet engines and power generation equipment in Mexico in 2009.

The company has signed an agreement with The Offshore Group, which has enabled companies to establish and maintain manufacturing facilities in Mexico at low cost and risk since 1986.

Trac Group's decision to locate manufacturing in Mexico was based on its need to grow capacity to meet customer needs; lower its base cost for manufacturing; and to meet demand by customers to source in U.S. currency. One of its biggest customers is Rolls Royce, with whom it will share 50 percent of the capacity of the Sonora operation.


Key Fact

Mexico exported over US$3.2 billion in 
aerospace manufactures and services in
2010. This figure is expected to exceed
US$5 billion by the beginning of 2012.

Mexico is the largest military and commercial aircraft market in Latin America. It has the second largest business aircraft fleet in the world and has a large private aviation services industry to service the oil and gas sector and provide executive transport. Mexico is striving to develop the capacity to assemble executive jets in the next 6-8 years. Mexican aerospace imports are spread evenly between aircraft and aircraft parts, aero-engines and avionics. After China, Mexico is forecast to be the second largest market for the Aerospace sector in the next two decades.

The Mexican Government has targeted aerospace as a strategic industry in its economic development strategy. Government, industry and academia are co-ordinated in their approach to attract foreign investment.

There are around 240 aerospace manufacturing companies employing over 30,000 individuals. The main clusters are located in the north and the Northern States and Central State of Queretaro. In recent years the sector has attracted significant investments from some of the largest companies in the sector including Honeywell, Bombardier, Bell, Cesna, GKN, Meggitt and Triumph.


Business Opportunities

  • Engine, electronic and landing system components, plastic injection, heat exchangers, precision machining, airfoil repairs, audio and in video systems, fuselage insulation and interior parts.

  • Engineering design and aeronautical components for military and civil applications.

  • Machining parts, vacuum heat treatment and chemical processing. There is low availability of aerospace grade materials for structural welding.

  • Sheet metal fabricators of super alloys, major sub-assembly companies, structure manufacturers, tooling companies and casting companies.

  • Special chemical processes and non-destructive testing.

  • Environmental solutions for reducing emissions including noise emissions.

  • Maintenance, repair and overhaul services.

  • Development of commercial and military projects related to high dual technology.

     

Contact and Further Information

A report on the Mexican aerospace sector as well as more information about the specific business opportunities, can be obtained by contacting the UKTI team in Monterrey: 
British Consulate Monterrey Tel: +52 81 8356 5359 Email: arodriguez@ukconsulate.org

 

Source - UKTI

 

Strategic Partners