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FIVE UNDER 30 The Fresh Faces of Contemporary Mexican Design MEXICO’S ELECTRIC INDUSTRY Meeting the World’s Needs VIII - 2012

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Meetingthe World’s

Needs

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Contents. August 2012

Cover Feature

mexico’selectric industry

From the Ceo 5

Briefs 8

Special report Industrial Parks in Mexicoare Gaining Competitiveness 12

Mexico in the World Mexico: Seizing the Opportunity to Lead 14

Mexico’s Partner

LG 26

Industrias Man 28

Meeting the World’s

Needs

Mabe 30

Margules 32

Polti 34

Koblenz 36

Danfoss 38

Osram 40

Schneider Electric 42

Philips 44

ABB 46

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Business tipsToward

PacificBasinIntegration

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Briefs

Negocios ProMéxico es una publicación mensual editada en inglés por ProMéxi-co, Camino a Santa Teresa número 1679, colonia Jardines del Pedregal, Delegación Álvaro Obregón, C.P. 01900, México, D.F. Teléfono: (52) 55 54477000. Página Web: www.promexico.gob.mx. Correo electró-nico: [email protected] Editor responsable: Gabriel Sebastián Escalante Bañuelos. Reserva de derechos al uso exclusivo No. 04-2009-012714564800-102. Licitud de título: 14459. Licitud de contenido: 12032, ambos otorga-dos por la Comisión Calificadora de Publicaciones y Revistas Ilustradas de la Secretaría de Goberna-ción. ISSN: 2007-1795.

ProMéxicoCarlos Guzmán BofillCEO

Sebastián EscalanteDirector of Publications and [email protected]

Miguel Ángel Samayoa Advertising and [email protected]

Natalia HerreroSuzette CelayaCopy Editing

Laboratorio EditorialFelipe ZúñigaEditor in Chief [email protected]

Paola ValenciaThe Lifestyle Editor

Alan AcevedoDesign

Graeme StewartProofreading

CM IdiomasAlison StewartTranslation

This is an editorial project for ProMéxico by Laboratorio Editorial, S.A. de C.V.

Download the PDF version and read the interactive edition of Negocios ProMéxico at: negocios.promexico.gob.mx

this publication is not for sale. Its sale and commercial distribution are forbidden.

The Lifestyle The CompleTe Guide To The mexiCan Way of life

Negocios ProMéxico año 5, número VIII, agosto 2012, se terminó de imprimir el 16 de agosto de 2012, con un tiraje de 11,000 ejemplares. Impresa por Cía. Impresora El Universal, S.A. de C.V. Las opiniones ex-presadas por los autores no reflejan necesariamente la postura del editor de la publicación. Queda estric-tamente prohibida la reproducción total o parcial de los contenidos e imágenes de la publicación, sin pre-via autorización de ProMéxico. Publicación Gratuita. Prohibida su venta y distribución comercial.ProMéxico is not responsible for inaccurate informa-tion or omissions that might exist in the information provided by the participant companies nor of their economic solvency. The institution might or might not agree with an author’s statements; therefore the re-sponsibility of each text falls on the writers, not on the institution, except when it states otherwise. Although this magazine verifies all the information printed on its pages, it will not accept responsibility derived from any omissions, inaccuracies or mistakes. August 2012.

Interview

MiguelCalderónThe Art of Rebellion

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the Lifestyle BriefsPagE 50

a Brief History ofAlebrijesPagE 52

48 Hours in...CampechePagE 58

DesignMexican JewelryDesign Now!PagE 62

Mexico according to...Ery CamaraPagE 72

We are not speaking metaphorically when we say Mexico is in the heart of many homes around the world –household appliances, electric devices, computer equipment and even mobile equipment such as phones and tablets, which are part of the daily lives of millions of people all over the globe, operate with technology that is made in Mexico.

Mexico has become one of the leading exporters in the electric and electronics industry and has strong presence in the world’s largest markets.

This success can be attributed to various factors, among which competitive production costs, a privileged geographic location, and a skilled workforce stand out.

Large international electric and electronics companies view partnering with Mexico as a strategic alliance, since they help consolidate a Mexican supply chain that complies with international standards and that meets the needs of an industry which is constantly evolving.

Therein lies the success of Mexico’s electric and electronics industry –in its ability to adapt and capacity to satisfy the needs of an ever-changing market.

Today, this industry is transitioning towards the development of sustainable products and solutions by searching for alternatives to use energy more efficiently and minimize the sector’s environmental impact in all its stages, from production processes to consumption by end users.

Mexico plays an important role in this search by contributing creative solutions from Mexican minds. Not only has the country consolidated itself as a manufacturing platform for the electric and electronics industry, but it has also become an important research and development center which is getting more people to live their everyday lives holding a piece of Mexico in their hands.

Welcome to Negocios!

Carlos Guzmán BofillCEOProMéxico

From the Ceo.

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Briefs

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Briefs Briefs Briefs

Nippon Steel Corporation, Sumitomo Pipe & Tube Co., Sumitomo Corporation and Metal One Corporation have established a joint-venture company in Mexico to build a steel plant in the central Mexican state of Guanajuato to supply the automotive industry.

The 39.6 million-usd plant will have the capacity to produce about 24,000 tons of automotive steel pipes and tubes. It is expected to begin production in June 2013 in the city of Silao and will supply products to Japanese, North American and European automakers and auto parts manu-facturers in Mexico.

AUTOMOTIVE

New Steps of Japanese Giants_____

CHEMICAL

Air Liquide Builds Two New Plants_____French industrial gas producer Air Liquide will build two new processing facilities in the northern state of Nuevo León. Plans call for a new air separation unit (ASU) and a steam methane reformer (SMR) to provide nitrogen and hydrogen to steel man-ufacturers Ternium and Teniga.

Both units are slated to start up around mid–2013 when the Ternium and Tenigal facilities are scheduled to begin commercial production. The overall investment will be around 35 million usd.

www.airliquide.com

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INFRASTRUCTURE

A New Maritime Terminal on the Pacific Coast_____APM Terminals, the world’s largest port developer and operator, is set to begin construction work on September 2012 on a 900 million-usd specialized container terminal at the Mexican port of Lázaro Cárdenas after signing a 32-year concession contract to build and operate the port.

The company, a unit of global maritime services giant AP Moller-Maersk, signed the deal with the Port Authority of Lázaro Cárdenas (APILAC) to design, finance, build, operate and main-tain the terminal.

The terminal will undergo a phased expansion in accordance with provisions of the concession agreement. The first phase of the project should be completed in 2015 at a cost of over 300 mil-lion usd. Upon completion of the final phase, the terminal will offer a total area of 102 hectares, with 1,485 meters of quay and water depth of 16.5 meters along the channel and quay.

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State-owned Petróleos Mexicanos (PEMEX) signed a long-term maintenance contract worth 50 million usd with Britain’s Rolls-Royce for a petroleum complex on the Gulf of Mexico.

The contract is the biggest reached in Mexico for the main-tenance of engines and electric generation equipment at the Abkatun-Pol-Chuc complex in Campeche.

www.rolls-royce.com

PETROCHEMICAL

Rolls-Royce SignsContract with PEMEX_____

Japanese-owned automotive accessory manufacturer Viam Manufacturing Inc. will invest 40 million usd to build a new pro-duction facility in the central state of Aguascalientes. The plant will produce floor mats for its major client, Nissan.

www.viammfg.com

AUTOMOTIVE

Roll Out theWelcome Mat_____

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Briefs

Comexhidro, a Mexican hydroelectric developer, and Con-duit Capital Partners, an investment firm focused on pri-vate equity investment opportunities, will develop a wind farm in the municipality of Santa Catarina, Nuevo León with production capacity of 22 megawatts (MW).

The new wind farm will operate with eight 2.75 MW wind turbines manufactured by GE to generate clean en-ergy for public lighting in Santa Catarina, helping to reduce greenhouse gas emissions equivalent to the amount pro-duced by 10,000 cars a year.

www.conduitcap.com

Public LightingPowered with Clean Energy_____

RENEWABLEENERGY

PULP&PAPER

Writingon Green Paper_____Mexican paper products manufacturer Corporación Scribe will invest 20 million usd in a project to use grass as a source of cel-lulose for the production of paper. The grass-based cellulose, intended to replace sugar cane bagasse, will be used to manu-facture notebooks.

www.scribe.com.mx

Briefs

SUSTAINABILITY

Setting a Record on Behalf of the Environment_____The Luz Sustentable (Sustainable Light) program of the Mexi-can government entered the Guinness Book of Records for hav-ing replaced 22.9 million incandescent light bulbs with com-pact fluorescent or “energy-saving” ones.

In total, more than 5.5 million Mexican families already use energy-saving lamps that consume only 20% of the energy and last 10 times longer than a traditional light bulb.

In the first stage of the program, partially financed by the World Bank (WB), there were more than 1,110 points of ex-change in the whole country.

To obtain four energy-saving lamps for free, it was only nec-essary to present four incandescent light bulbs, an electricity bill and an ID.

With the already replaced light bulbs, savings are estimated at 1,400 gigawatt hour (Gwh), in other words the energy that is consumed in a year in Nayarit or Colima.

According to calculations by the Ministry of Energy (SENER),

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the program also has an impact on the budget at home, as a family can save up to 18% of the electric bill.

Less consumption of electricity also favors the environment, as an emission of about 700,000 tons of CO2 is being avoided with the light bulbs that have been replaced until now, the equivalent of more than 130,000 cars.

In its second stage, the program hopes to replace an extra 23 million incandescent bulbs with energy-saving lamps.

This time, families that have not yet participated will receive eight energy-saving light bulbs in exchange for four normal ones. Those who already have participated in the first stage will receive four additional energy-saving light bulbs.

When the second stage ends, it is estimated that savings will be of 2,800 Gwh per year, more than double the electricity con-sumption of the state of Campeche in 2011.

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AEROSPACE

US-based coatings engineer Ellison Surface Technologies will open a new thermal spray coating and special process facility in the state of Sonora. The 1.5 million-usd location is planned to provide heat treatment and special processes for aerospace components.

www.ellisonsurfacetech.com

Ellison Surface Lands in Mexico_____

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IndustrIal Parks In MexIco are GaInInG coMPetItIveness

Industrial parks are a comprehensive solution to the land needs for productive activities; they have positive effects in tax revenues and contribute to the quality of life of the com-munities in which they settle. Therefore, the consolidation of

this sector is increasingly important for the Mexican economy, with certification playing a role.

Mexican Standard NMX-Industrial Park R-046-SCFI-2011 verifies compliance with quality standards, both in the terri-tory an industrial park sits and in the internal infrastructure and public services it must offer. Certification under this standard provides certainty to tenants of an industrial park and guarantees the existence of an optimum area for manufacturing operations.

This rule states that an industrial park must have a surface of at least 10 hectares, as well as checking permissions for industrial use, internal rules and basic urban infrastructure such as green areas and services like water, electricity and drainage.

In 2011, this standard was updated to be aligned with other of-ficial Mexican standards relating to electrical installations, energy efficiency, public lighting, discharge of sewage and drainage net-works. This update also included a requirement for environmental impact and an appendix with the criteria to obtain the recognition of “clean industrial park” awarded by the Federal Environmental Protection Agency (PROFEPA).

With support from the Ministry of Economy (SE), the Mexican Association of Industrial Parks (AMPIP) has promoted the imple-mentation of this new standard among its associates. To date, 40 industrial parks –located in Nuevo León, Baja California, Jalisco, Estado de México, Guanajuato, Querétaro, Sinaloa, Hidalgo, Pueb-la, Tamaulipas, Coahuila, San Luis Potosí and Tabasco– have been certified under the new standard. In said parks, 383 companies,

The Mexican Association of Industrial Parks (AMPIP), which represents more than 200 industrial parks with over 2,000 companies in 22 Mexican states, is determined to promote the certification of its associates in order to increase their competitiveness and make them more attractive for investors. ____by paola verduzcophotos courtesy of ampip

Industrial parks are playing a crucial role

in the development of infrastructure. They also

boost competitiveness and generate more jobs.

which generate about 16,000 direct jobs and 50,000 indirect jobs, are installed.

Furthermore, the industrial parks standard has been recognized by some Mexican municipalities as key reference for urban plan-ning. For example, Mexicali in Baja California has launched a new legal procedure for the registration of the internal regulations of industrial parks in the public record, so now all the industrial parks in the city must have internal regulations governing their develop-ment and growth. In exchange, the municipal government grants a property tax incentive to parks that accomplish this requirement. Currently, local authorities are in negotiations to integrate this in-centive in its 2013 Revenue Act.

Similar criteria are about to be applied in Tecate, Baja California. The Ministry of Infrastructure and Urban Development (SIDU) of Baja California has recognized the importance of incorporating this rule to the state’s urban development regulations.

In San Luis Potosí several incentives are granted to companies established in certified industrial parks.

Industrial parks are playing a crucial role in the development of infrastructure. They also boost competitiveness and generate more jobs. Additionally, industrial parks contribute to the relocation of productive activities and to the preservation of the environment by fostering a more rational and efficient use of resources such as electricity and water. Furthermore, by facilitating the interaction among different companies of the field, industrial parks are helping to develop new research and technological capabilities through-out the country. For all this, the certification of industrial parks in Mexico has become strategic for business development, which is being supported in several fronts. n

www.ampip.org.mx

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Mexico is not onlyan enormous market

opportunity. It is the ninth most important IT talent

pool in the world, with over 65,000 sector-related

professionals graduating every year.

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As hard as it may seem to younger generations, not so long ago telephones –especially mobile phones– were only a tool for communication. Today, mobile phones have become much more than a device for placing phone calls,

having many different usages and applications.Thanks to the introduction of smartphones, computer business

has changed dramatically. Today Apple, the largest computer com-pany in the world by market value, considers itself a mobile device company. The company’s iPhone, iPad and iPod sales surpass their computer business by far. In addition, the rise of social networks has been unexpected and amazingly fast. By the end of 2011, over 600 million people were using Facebook. This has essentially turned mobile phones into a vital need for many people around the globe.

Similarly, the growth experienced by the global electronic industry that supports the manufacturing of mobile devices and computers has been equally fast. The introduction of touchscreen technology for mobile devices has sparked a new age for computer and laptop producers. Some groups have emerged as clear leaders while others are currently out of the picture. Every computer or mobile device company must now offer a touchscreen option.

Countries like Taiwan and South Korea, with their enor-mous investment in research and development (R&D), have been the frontrunners in the worldwide display manufacturing business, with companies like Foxconn and Samsung leading the way of innovation in this field.

Mexico, with its strategic location and competitive manufactur-ing costs, has turned into the ideal location for the manufacture and assembly of mobile devices, as well as other electronic products. Foxconn, Samsung, Flextronics, Kinpo, Wistron, Delta, TPV and Tatung, among other companies, have been increasing their manu-facturing capacity in Mexico to mitigate the constant increase of production costs in mainland China. For decades, Asian companies have been participating in specific programs from the Mexican Min-istry of Economy (SE) in order to manufacture electronic products in Mexico at more competitive costs. These programs allow foreign companies to allocate their components from all over the world, which are then incorporated into finished goods for their export.

MexIco: seIzInG the oPPortunIty to lead Thanks to its strategic location and competitive manufacturing costs, Mexico has become an ideal location for the manufacture and assembly of mobile devices.____by césar fragozo*photo archive

According to AlixPartners, Mexico offers the best manufacturing costs in the world to supply the North American market, surpass-ing all BRIC countries with a 25% cost advantage with respect to the US. Furthermore, Mexico has a highly-skilled workforce that manufactures state-of-the-art technological devices that are then shipped to the rest of the world. Smartphones, flat screen TVs, tablet computers, modems, and multiple electric and electronic devices are shipped from Mexico on a daily basis.

According to the Mexican Chamber of the Electronics, Telecom-munications and Information Technologies Industries (CANIETI), Mexico has had an exponential growth in TI exports. In 2011 alone, Mexican IT industry exported 5 billion usd. Compared to 2010, Mexican IT industry grew 14% in 2011, with total sales of 17 billion usd. During 2011, exports from the electronics industry accounted for 25.5% of the country’s manufacturing exports.

IT products and services in Mexico include: development, con-sultancy, implementation, staffing and support. In the business process outsourcing (BPO) services market, Mexico provides: front office, middle and back office, infrastructure and consultancy.

Mexico’s operating costs for software development and call centers are more competitive than those in the US, Canada and other countries in Europe and Asia. With outsourcing revenues of over 3.5 billion usd, Mexico is ranked fourth in the Gartner Global IT Services Provider ranking following India, the Philippines and China. According to A.T. Kearney’s Global Services Location Index (2011) Mexico is the best destination in the Americas to set up IT service companies.

Mexico boasts a geostrategic location and competitive costs to service global markets. After many years of economic stability, products are not only exported, but sold successfully within Mexi-co. Foreign manufacturing companies have been setting up shop in Mexico due to the potential of its young population. According to the latest national census (2010), Mexico has over 112 million in-habitants and a median age of 26. All these young users represent the future of the country, and they are increasingly demanding the latest electronic devices.

However, Mexico is not only an enormous market opportu-nity. Mexico is the ninth most important IT talent pool in the world. More than 65,000 sector-related professionals graduate every year. In 2011, over 115,000 engineers graduated –more than in Canada, the United Kingdom, Germany or Brazil. According to the Ministry of Education (SEP), Mexico has the third largest education system in the Americas, with 2,964 higher education institutions and around 3.4 million students enrolled in higher education programs.

All these potential advantages are currently booming, allowing Mexico to consolidate itself as a competitive destination not only in the Americas but worldwide. n

*Trade Commissioner at ProMéxico’s Representative Office in Taiwan.

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Toward Pacific Basin inTegraTion

The region known as the Pacific Basin covers 180 million square kilometers –roughly one third of the Earth’s sur-face– and lays claim to four of the world’s seven major inter-oceanic passages: the Panama Canal, the Drake

Passage and the Magellan and Malacca straits. Home to 3.3 billion people –half the world population– around

1,200 languages are spoken in the widely-dispersed territories of this region. To grasp the distances it comprises, the Bering Strait and the Antarctic are 9,600 miles apart, while Colombia and Malay-sia are separated by 1,000 miles.

As politically divergent as it is geographically, the Pacific Basin encompasses 47 states or territories –43 if you exclude Hong Kong, Taiwan and the colonial possessions of France and Great Britain– all with access to the Pacific Ocean.

Diversity seems to be the common denominator in this region where developed countries like the US and Japan coexist with de-veloping ones like China, Russia, Indonesia, Mexico and Chile. The Pacific Basin accounts for 40% of international trade, 50% of global industrial output and 54% of total investment.

In light of the economic, political, cultural, social and military disparities of these territories, some believe economic cooperation and integration processes must be based on the affinities of coun-tries within a specific region. In these terms, experts say the Pacific Basin regionalization process is taking place on two levels: a struc-tural or real level and a super structural or formal level.

On a structural or real level, the US and China have helped trig-ger an unprecedented economic dynamic fueled by the mobility of financial capital and investment.

While on a super structural or formal level, Japan has been the main advocate of the systematization of trans-pacific relations via economic cooperation mechanisms based on mutual knowledge and interdependence as a recipe for collective security, where any threat to one of the region’s member’s interests is deemed as a global risk.

Japan currently has free trade agreements in place with Mexico, Peru, Chile, Singapore, Malaysia, Thailand, Indonesia, Brunei, the Association of Southeast Asian Nations (ASEAN), the Philippines, Switzerland and India, and is in the process of negotiating similar treaties with Australia, Mongolia, the Gulf Cooperation Council

Mexico recently joined Trans-Pacific Partnership talks, reasserting its support of economic liberalism and its interest in consolidating mechanisms for the integration of one of the world’s largest and most productive regions. ____by maría cristina rosas*photos archive

(GCC) and South Korea. It is also doing the groundwork for pacts with Canada, China, Colombia and the US.

It was former Japanese Prime Minister Masayoshi Ohira who first came up with the Pacific Basin concept and who later inspired economist Saburo Okita. Their joint proposal was re-ceived with great interest by the Australian National University (ANU), which sponsored the Pacific Economic Cooperation Con-ference (PECC) in 1980.

It wasn’t until 1989, with GATT (General Agreement on Tariffs and Trade) Uruguay Round talks at an impasse and in response to fears of protectionist policies that would restrict access to international markets that PECC, under the leadership of Australia, declared the creation of the Asia-Pacific Economic Cooperation (APEC).

APEC achieved something the region had aspired to since the 1960s –the establishment of a Pacific Free Trade Area (PAFTA). Conceived as a restricted membership forum for negotiations between heads of state working towards a consensus on trade and investment issues, it wasn’t until 1993 –the year in which Mexico joined– that a permanent APEC secretariat was estab-lished in Singapore.

Despite its initial exclusivity, APEC has since opened its doors to other nations gathering 21 members: Australia, New Zealand, Papua New Guinea, Japan, China, Taiwan, Hong Kong, Indonesia, Malay-sia, Thailand, Brunei, the Philippines, Vietnam, Russia, South Ko-rea, Singapore, the US, Canada, Mexico, Chile and Peru. Countries like India are seeking membership and the possibility of including Cambodia, Myanmar and Laos is currently being analyzed.

APEC was born out of controversy due to its informal nature and the agreements it has reached. For instance, the Bogor Dec-laration and the Osaka Action Agenda gave industrialized APEC members until 2010 to open up their economies, while develop-ing ones were given until 2020. And while its goals are indubi-tably laudable, consistent even with World Trade Organization (WTO) provisions, APEC’s lack of institutionalization is a cause for concern, not only in regard to the problems the WTO is expe-

In June 18, 2012, the US president announced that the countries involved inTPP negotiations had extended an invitation to Mexico to join.

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As a TPP member, Mexico will be able to ratify its presence in the world’s most dynamic trade and financial zone at a time when nations need to join forces to tackle the current international economic crisis.

riencing but because it is feared some nations will not be able to meet these liberalization deadlines.

Thus, the Trans-Pacific Strategic Economic Partnership Agree-ment (TPP) initiative was put forward in 2005 and began operating in 2006. The goal of the TPP negotiation process is to create a plat-form for potential economic integration in the Asia-Pacific region via a broad-based inclusive agreement that lays the foundation for economic growth, development and job creation in member coun-tries, while paving the way for a future PAFTA.

Developed by four TPP member countries –Brunei Darussalam, Chile, New Zealand and Singapore– the agreement’s negotiation process, also known as P4, was an open-ended treaty that provided for third party membership to promote the forging of wider-reach-ing strategic alliances to free up trade in the region.

On February 4, 2008, the Office of the US Trade Representative (USTR) announced that the US would be taking part in P4 talks on investment and financial services programmed for March of that year. On September 22, 2008, P4 countries and the US disclosed that they were negotiating the latter’s TPP membership. Similarly, Australia, Peru and Vietnam stated they were interested in joining TPP talks at the APEC Leaders’ Summit of November 2008.

One year later, in November 2009, the US president an-nounced that he would work with the initial group of seven TPP member countries on a regional accord of “broad membership and highest standards that represent the efficacy of a 21st cen-tury agreement.”

In 2010, during the third round of TPP negotiations, Malaysia submitted an official request to join, which was accepted by all eight participating countries.

And in November 2011, when TPP member countries announced the general principles of the agreement, Canada, Japan and Mexico expressed their interest in joining.

In June 18, 2012, the US president announced that the countries involved in TPP negotiations had extended an invitation to Mexico to join, and the next day, on June 19, Canada received its invitation.

As a TPP member, Mexico will be able to ratify its presence in the world’s most dynamic trade and financial zone at a time when nations need to join forces to tackle the current international eco-nomic crisis. In addition to APEC and its trade agreements with Japan, Canada, the US, Chile, Costa Rica, G3 and the Northern Triangle, the TPP will provide Mexico with another access to Pa-cific Basin markets and a mechanism for economic and political consensus in the interests of global governability in the 21st century. The majority of TPP member countries –Mexico included– also belong to G20, whose mission is to find solutions to global trade and financial problems. As such, the TPP affords Mexico an excellent opportunity to bolster trade with participating nations, thereby averting the protectionist inclinations that tend to surface in times of economic strife. n

* Professor and researcher in the Political and Social Sciences Faculty, National Autonomous University of Mexico (UNAM).

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mexico’selectricindustryMeeting the World’s NeedsDue to their levels of investment, exports and employment generation, the electric and electronic industries have become strategic sectors of the Mexican economy and have positioned the country as an increasingly important player in the global markets. ____by mariana moralesphotos archive / infographics oldemar

Mexico is one of the most important manufacturing hubs for the global electric and electronic indus-tries, as well as a leading exporter of products from those sectors, which why it is on its way to become

a world-class design, research and development center.Facts speak by themselves. Mexico is Latin America’s second

largest producer of household appliances and, according to data from Global Trade Atlas (GTA), the country is the world’s sixth largest exporter of household appliances, the largest exporter of flat screen TVs, refrigerators and freezers with a separate exterior door, and the fourth largest exporter of computers.

Behind these figures, several decades of development can be found, which have led to the consolidation of a production plant that today, in addition to manufacturing activities, is focusing on research and development (R&D) of new solutions to meet the needs and demands of an evolving global market.

At first, Mexico’s proximity to the US –the world’s largest market for electrical and electronic sectors–, coupled with a number of advantages such as competitive production costs and highly-skilled human capital, attracted some of the indus-try’s biggest players to the country.

Major transnational companies producing household appli-ances and electronics, saw in Mexico an opportunity to reduce

production costs, easily enter the US market and, at the same time, gain space in a domestic market with promising growth prospects.

Today, these companies still consider Mexico as a strategic ally; but they are not alone. Mexican companies have achieved signifi-cant levels of development and are now competing globally with large multinationals.

In addition, the presence of large global firms in Mexico and the growth and internationalization of Mexican companies, encouraged the development and consolidation of a supply chain with companies that also have an important position in international markets.

Currently, the electric and electronic industries are fac-ing new challenges. Concerned with environmental matters, consumers around the world are looking for safer and energy-efficient products.

Mexican industry has always stood out for its capacity to adapt to the market needs and it is likely to meet its new requirements with creative solutions.

So far, Mexico remains as one of the most attractive invest-ment destinations for electric and electronic companies, and the country’s production and exports keep growing at a constant rate. Numbers speak louder than words.

HouseHold aPPliances According to data from ProMéxico, total production of household appliances in Mexico reached 7.86 billion usd in 2011 and that fig-ure will grow at an average annual rate of 7.3% in the next ten years. It is estimated that Mexican of household appliances production will record almost 15 billion usd in 2020.

In 2011, domestic sales of household appliances reached 3.42 billion usd, while exports totaled 6.3 billion –10.3% more than in 2010–, having the US, Canada and Colombia as main destinations. According to data from GTA, Mexico was the largest supplier of refrigerators and electric water heaters and the second largest of washers, vacuum cleaners and electric stoves to the US market.

Currently, here are 269 economic units (that includes manu-facturing plants, sales and representation offices) related to the household appliances industry in Mexico. Those economic units employ more than 51,000 people, mainly in Mexico City, Estado de México and Jalisco –the state that has more economic units engaged in the production of major appliances.

From 2000 to 2011, Foreign Direct Investment (FDI) in the household appliances sector totaled 2.39 billion usd. In 2011, FDI in this sector reached 120 million usd. Companies from the US, South Korea and The Netherlands are the main investors in the production of household appliances in Mexico.

Mexico is Latin America’s second largest producer of household appliances

The country is the world’s sixth largest exporter of

household appliances, the largest exporter of flat screen

TVs and refrigerators and freezers with a separate

exterior door, and the fourth largest exporter of

computers.

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22 Negocios ProMéxico Negocios ProMéxico 23

EXPORTSBY YEARbillion USD

Productionin 2011

7.86billion USD

HOUSEHOLDAPPLIANCESIndustry

Mexico is:

largestexporterof home

appliances.

6th

exporterof refrigerators.

1st

largestexporter of

washerswith 10kg orless capacity.

2nd

supplier ofwashers, gas

stoves and vacuumcleaners to the

US market.

2nd

largestexporter of gas stoves

and electricwater heaters.

3rd

largestexporter of

vacuum cleaners and air

conditioners.

4th

supplier ofrefrigerators

and electric water heaters to the

US market.

1st

Exports byCOUNTRY OFDESTINATIONin 2011, million USD

By country of origin (2000 - 2011)

5,361US

267Canada

142Colombia

80Venezuela

47Chile

40Guatemala

From2000 to 2011:

2.39billion USD

71.6%United States 9.1%

The Netherlands

1.7%Canada

1.7%Japan13.3%

South Korea

FOREIGN DIRECT INVESTMENT

20073.3

20084.4

20094.3

20105.7

20063.0

20116.3

20051.8

Sour

ce: M

inis

try

of E

cono

my

(SE

).So

urce

: Glo

bal T

rade

Atla

s (G

TA).

Major transnational household appliances companies estab-lished in Mexico are Whirlpool (US), LG (South Korea), Mabe (Mexico), Samsung (South Korea) and General Electric (US).

elecTronic indusTryThe electronic industry is one of the key sectors of Mexico’s economy. The country is well positioned as an assembler and ex-porter of electronic products and has become one of the world’s major investment destinations.

Eight out of the 10 world’s biggest electronic companies are established in Mexico. Major companies like Samsung, LG, Toshiba, Foxconn, Flextronics and Intel are working in the coun-try and are investing not only in manufacturing plants but also in research and development –using Mexican talent.

From 2000 to 2011, FDI in Mexico’s electronic industry reached almost 10.5 billion usd, with companies from the US and The Netherlands as major investors.

In 2011, the total production of Mexico’s electronic industry reached a value of 62.77 billion usd.

Mexico is one of the biggest markets for electronic products in America. In 2010, Mexico accounted for 8.7% of the consumption of electronic products in North America and it is estimated that the market will grow at an average annual rate of 3.3% from 2011 to 2020. In 2011, domestic sales of electronic products recorded 84.34 billion usd.

Meanwhile, Mexican exports of electronic products reached 71.14 billion usd in 2011. The major markets for Mexico’s elec-tronic industry are the US –accounting for 85% of the country’s

industry exports–, Canada, The Netherlands and Colombia. In 2011, Mexico had a significant share of the world’s market for TVs, computers and mobile phones. The country was the world’s largest exporter of flat screen TVs and the fourth largest of computers.

elecTrical manufacTuring equiPmenTMexico is Latin America’s leading producer of electrical manu-facturing equipment. The country is home to companies such as ABB, Eaton, Furakawa, ACME, Belden, Cooper, General Electric Company, Hammond, Schneider, Siemens, Thomas and Betts, Mitsubishi and WEG, and is the main supplier of products for energy distribution, transformers, engines and generators to the US market.

In 2011, this sector’s production was valued at 19.37 billion usd and it is expected to grow at an average annual rate of 6.8% from 2011 to 2020.

That same year, exports from this sector reached 11.81 billion usd and, according to estimates from the Bank of Mexico, that figure could grow at an average annual rate of 5.1% for the next eight years. Nearly 91% of Mexican electrical manufacturing equipment exports were sent to the US market, the remainder was sold in Canada, The Netherlands, China, Brazil and Colombia. Among the most ex-ported products from Mexico are engines and generators, watt-hour meters, cables and transformers.

The country is one of the main destinations for FDI in the sec-tor. From 2000 to 2011, FDI reached 5.19 million usd –558 million in 2011. n

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24 Negocios ProMéxico Negocios ProMéxico 25

ELECTRICALMANUFACTURING

EQUIPMENT

227

213The

Netherlands

Countryof originFDI 2011, million USD

ForeignDirectInvestmentfrom 2000 to 2011:

5.19billion USD

96Japan

FDIin 2011:

558million USD

Productionin 2011

19.37billion USD

Mexico is

1st

supplier ofelectric power

distributionequipment,

electrictransformers,

electricgenerators

and enginesto the

US market.

Source: US Census Bureau.

Exportsin 2011:

11.81billion USD

Source: Ministry of Economy (SE).

United States

ELECTRONICINDUSTRY

Mexico is:

1st

5th

405

23Singapore Country

of originFDI 2011, million USD

4th

largestexporter ofcomputers.

exporter ofTV screens.

largestexporter of

microphones,loudspeakers,

headphonesand earphones.

Source: Global Trade Atlas (GTA).

ForeignDirectInvestmentfrom 2000 to 2011:

10.49billion USD

22Switzerland

FDIin 2011:

617million USD

Productionin 2011

62.77billion USD

Source: Ministry of Economy (SE).

United States

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26 Negocios ProMéxico Negocios ProMéxico 27

lG electronIcs Puts down roots

In MexIco

Mexico is a double-looped virtuous circle for LG Elec-tronics, a subsidiary of the LG Group. In terms of sales and marketing alone, Mexico rates seventh among the dozens of countries where the company

has presence. However, in terms of production capacity, the country rises to the fifth position on the global ranking, says LG Electronics Sales and Marketing Vice President, Antonio Hidalgo.

Mexico, the world’s largest consumer of LG mini hi-fi sys-tems, is of “enormous strategic importance,” says Hidalgo. But that is just one reason LG embarked on the construction of its fourth and most recent production facility in the country, in the city of Monterrey, Nuevo León, back in 2008.

LG currently produces 400,000 televisions a month –from medium to premium models– at its Mexican facilities located in Mexicali, Baja California and Reynosa, Tamaulipas, plus 800,000 refrigerators and 70,000 stoves a year at its white goods plant in Monterrey.

In 2009, construction began on a second facility for the manufacture of front loading washing machines and stoves in Monterrey, injecting 100 million usd over the course of three years. According to articles published in the Mexican media, the new plant has boosted total annual production capacity in Mexico to 4 billion usd.

Mexico’s highly-skilled workforce is another reason LG chose to expand here. “Otherwise, the company wouldn’t set up production sites in the country, where it employs around 800,000 people at its manufacturing plants and sales and mar-keting offices,” says Hidalgo.

All LG products are manufactured in compliance with strict quality standards, whether intended for the domestic or export mar-kets. Around 30% of the products manufactured in Mexico are sold on the domestic market and the remainder is exported mainly to the US and Canada but also to Central and South America, to countries like Guatemala, Panama, Colombia, Peru and Chile.

It was an internal distributor who first introduced LG to Mexico back in 1988. At the time, the company had no intention of setting up

The domestic market is a major consumer of LG products, which it manufactures for export all over the continent.

____by sandra roblágui

photos courtesy of lg electronics

production facilities here but such was its initial success that only five years later it had opened a sales and marketing office.

“The company quickly grasped the potential of Mexico’s geo-graphical location as a gateway to the US and the rest of Ameri-ca,” says Hidalgo. By 2009, LG Electronics was producing 90% of the products it was selling on the domestic market in Mexico and 80% of those destined for the US.

But Mexico is more than an export platform to LG: it is an impor-tant market in its own right. “For almost 25 years, we have been bless-ed with the loyalty of Mexican consumers,” says Hidalgo, adding that Mexicans may not realize it but they have been equally blessed with a company that creates jobs and respects its employees and customers, both at the production chain level and in terms of its product features.

“Our core policies place particular emphasis on social responsi-bility. We believe it is our duty to cooperate on that issue and in the area of sustainability,” says Hidalgo.

One example of LG’s commitment to the environment is the front loading washing machine it currently manufactures in Mexico, a product that consumes 60% less water and 35% less electricity than most of its competitors, but there is more. Since 2011, a percentage of profits on the sale of the item have been chan-neled into 28 rainwater collection centers. Located in Veracruz, in Southeast Mexico, these centers are expected to benefit approxi-mately 5,000 people over the next 30 years.

Another example is the LG refrigerator equipped with a linear compressor system. Also manufactured in Mexico, the motor of the refrigerator is 20% more efficient than any other on the market.

Hidalgo says the company plans to continue strengthening its presence in the country. “We want to do business but also contribute to the communities where we operate.”

And that it has certainly done. LG Electronics recently donated 3,000 trees to reforest woodland areas in Mexico City and the central state of Querétaro, while the products it manufactures in the country help improve the quality of life of people all around the world. n

www.lg.com

LG currently manufactures 400,000 televisions a month,

800,000 refrigerators and 70,000 stoves a year in

Mexico. Around 30% of that production is sold on the

domestic market and the remainder is exported.

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28 Negocios ProMéxico Negocios ProMéxico 29

indusTrias manBlending Business

and Innovation

In 2013, consumers will be able to buy more durable, energy-efficient blenders. Industrias Man de México is developing a permanent magnet motor that is set to revolutionize the electrical appliances market and add another feather to the

company’s environmental cap.Industrias Man started out 63 years ago manufacturing hosiery

machines. Today it attributes its success to its ties with researchers and university students.

“We care about the environment. For the last two years, we have been working with researchers at the National Autonomous Uni-versity of Mexico (UNAM) on a permanent magnet motor for our blenders. The motor they are currently fitted with is fractional, has less than one horse power and uses a carbon extractor. The new mo-tor avoids friction, will have a longer life, pollute less and help save on energy,” says Carlos Morales y de la Vega, industrial relations manager for Industrias Man.

“Chemistry PhD students at the Autonomous Metropolitan Uni-versity (UAM) are developing galvanoplasty processes to save on nickel and copper, which they hope to patent. We are working with them on theoretical and practical aspects simultaneously. We’ve been studying that for a year and a half and we’re almost there. That would be extremely beneficial because it would mean our waste no longer has polluting residues.”

Industrias Man began operating with a workforce of just ten. Today it employs over 600 people at its manufacturing plant in the Iztapalapa district of Mexico City, has a portfolio of 400 clients and 400 suppliers that distribute its ventilators and blenders in Mexico, Central America and Cuba.

Founded by Luis Pérez Fernández in 1949 as a manufacturer of hosiery machines, Industrias Man began making blenders in 1957 and ventilators in 1975, the two products it not only manu-factures but exports.

In Mexico, the company sells some 32 models of blenders and three types of ventilators with plastic blades. The same

Together with researchers from the UNAM, this Mexican enterprise is developing a permanent magnet motor to extend the life and reduce the

energy consumption of its home appliances. ____

by maría sávilphoto courtesy of industrias man

ventilators that were rated the best products of their kind by Mexican consumers in the May 2012 issue of Revista del Con-sumidor, the consumer magazine published by Mexico’s Con-sumer Protection Agency (PROFECO).

“We were the first to make a ventilator with plastic blades. At the time, the only other ventilator manufacturer in the world was Philips and their blades were made of metal. We manufactured the first ventilator with plastic blades, which was a breakthrough. We are the market leaders,” says Morales y de la Vega, who has been with the company for 36 years.

“We are 98% integrated. Almost all our processes are integrated and although some question the system, it’s what assures the excel-lent quality of our products. People who have come to know us are aware of the fact that we don’t make a product to last for only one or two years. Customer service is also important. We have an incred-ible response capacity. That’s why we’re so successful.”

Morales y de la Vega says Mexico has everything Industrias Man needs to expand and is convinced many companies that recently opted to transfer their manufacturing operations to other regions, mainly Asia, will return to Mexico due to the competitive and com-parative advantages the country offers. “Investment is on our door-step. Many companies will be lured back to Mexico by competitive production costs, the country’s economic stability and the export advantages it offers,” he says.

Meanwhile, in a bid to get ahead of the competition, Industrias Man is developing new products and investing in capital assets. The company recently acquired hi-tech machinery, putting it on a par with Asia’s large manufacturers, but the quality and competitiveness of its workforce is its major differentiator. Industrias Man has seen three generations pass through its factory doors. “Entire families have worked for us, parents, children and grandchildren. They’re very loyal. Our entire workforce is Mexican,” says Morales y de la Vega. n

www.industriasman.mx

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30 Negocios ProMéxico

mabeA Force to be Reckoned with in the Appliance WarMore than six decades of experience in the white goods market, coupled with ongoing research and development (R&D) activities, have established this Mexican brand as a household name worldwide.____by sandra roblágui photo courtesy of mabe

According to Moreno, “qualified Mexicans are the

most important aspect of our appliance manufacturing

operations. In fact, Mexico has higher quality standards

in that area than other countries, including the US.”

Either as an independent brand or in partnership with General Electric (GE), Mabe’s appliances are part of daily life in 72 countries around the world, mostly in the form of stoves, equipment that currently ac-

counts for half the domestic market and a generous slice of the international one.

“Mabe México is a positive case on the international market. Of all the manufacturers of electrical appliances in the world, there are only a handful of large corporations. Mabe is one of the big five, with a presence mainly in America,” says Pablo Moreno, director of the company’s Corporate Affairs.

Founded in Mexico in 1946 at the peak of the electrical appli-ance boom, the company followed the path mapped out by success-ful enterprises before it: innovation, mutually beneficial alliances and the ability to adapt to the needs of its customers.

From manufacturing lighting fixtures and fitted kitchens, Mabe soon began producing white goods, mostly gas stoves and refrigerators. By the early 1960s it was already Mexico’s largest exporter of electrical appliances.

Being the largest and one of the most innovative firms, Pablo Moreno recalls how Mabe was coating the inside of its refrig-erators with a protective layer of plastic when the idea hadn’t even occurred to anyone else.

In the 1970s, Mabe expanded to Latin America and its prod-ucts reached Puerto Rico, the Dominican Republic and Ven-ezuela. A decade later, already an established leader on the white goods market, it arrived in the US, where it entered into a strategic alliance with GE in the late 1980s.

During the 1990s, more than half the gas ranges and refrig-erators sold in the US were designed and manufactured by Mabe México, while the company’s plant in the northern Mexican state

of San Luis Potosí was manufacturing 9 out of every 10 of said ap-pliances sold under the GE brand.

That was when Mabe seized the opportunity to purchase 14 international brands of electrical appliances.

Today, Mabe is the largest producer of appliances in Latin Ameri-ca, employing 24,000 people in the manufacture of refrigerators and stoves in Colombia; freezers, refrigerators and stoves in Ecuador; and refrigerators, washing machines and stoves in Argentina and Brazil. Moreover, its alliance with GE gives it access to markets in the US and Canada, where it fabricates clothes dryers and dishwashers.

Stoves have been a key contributor to Mabe’s growth and Mexico’s highly-skilled workforce has been its pilot light. According to Moreno, “qualified Mexicans are the most important aspect of our appliance manufacturing operations. In fact, Mexico has higher quality stand-ards in that area than other countries, including the US.”

But before a product even makes it to the production line, around 350 experts, most of them Mexican, test run new appliances and im-prove the formulae of existing ones at the company’s Development and Technology Center in the central state of Querétaro, where Mabe works on projects in conjunction with GE.

Added value, know-how and the fact that the form and con-tent of its appliances are developed in-house are what has driv-en Mabe’s expansion, says Moreno, adding that its technology center has earned such a name for itself that it has received re-quests from third parties to develop new products from scratch or upgrade the technology of existing ones.

The Mabe technology that eventually ends up in thousands of homes is developed with the help of the country’s institu-tions and academic circles. “We have a production platform with a very solid cluster […]. There is a high level of integration in the development of technology,” says Moreno.

With funds put up by the National Council of Science and Tech-nology (CONACYT), several national universities are working with Mexican companies on the development of new technologies. These clusters are producing an increasingly specialized workforce, which creates a win-win situation for all of the industry’s players.

Another competitive advantage Mabe cites is proximity to the US, with Mexico acting as a bridge to markets in Central and South America.

But making money isn’t Mabe’s only goal. “We have a respon-sibility toward our workers and their development because we’ve seen a correlation between our production methods and productivity,” says Moreno.

The same sense of responsibility prevails when it comes to the environment: “We have developed technology to improve the efficiency of our appliances, so they consume fewer natural resources,” says Moreno.

For example, an automatic washing machine typically con-sumes up to 240 liters of water during a normal wash cycle –30% of the average household’s daily water consumption– but Mabe has managed to reduce that to 80 liters by means of technology that produces the same end result, translating into savings of as much as 50,000 liters of water a year.

“These washing machines are also more energy efficient,” says Moreno, adding that Mabe, in association with the National Water Commission (CONAGUA), has designed an “eco-grade” system to help consumers identify environmentally-friendly appliances.

Mabe’s next move in the appliance war is to take on the European market, where the quality of its products will surely give it a competi-tive edge among all the other strategic advantages it already enjoys. n

www.mabe.cc

Negocios ProMéxico 31

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32 Negocios ProMéxico Negocios ProMéxico 33

Everyone who works at Margules Audio is obsessed with high fidelity. In fact, it could be listed as a job requirement. Since the 1920s, this micro Mexican company has been re-producing sounds that are literally music to the human ear.

Boasting a catalogue of 30 products, Margules and its Ma-genta brand are rated leaders in preamplifiers, amplifiers, loud-speakers, processors and other accessories by audio experts from every corner of the globe.

Incidentally, magenta is the color of sound and each of the brand’s products are conceived, designed and built to enhance resolution and performance.

Margules’ other line, Marvox, is a high-end option for con-sumers in search of connectivity.

“We recently opened offices in the US, in San Francisco, Cali-fornia, and Italy, and we have a small distributor in Australia,” says Julián Margules, who hails from a line of three generations of audio system designers and manufacturers. “We do everything ourselves. We’re a small but very high-end boutique company with 20 employ-ees that competes on the international market.”

And compete it does. Margules’ systems have received rave write-ups in international magazines and come highly recom-mended in Latin America by chains like CNN, which rates its high-end audio equipment with a five out of five. “It’s so defined you can actually hear where the sound comes from,” say CNN Clix critics.

In addition to its product lines, Margules is working on large-scale audio projects for clients like the Mayan World Museum in Mérida, Yucatán –which is even larger than the Chichén Itzá and Teotihuacán museums–, the National History Museum at Chapultepec Castle in Mexico City and the Four Seasons hotel, which has hired the company to design a sound control room for them, also in Mexico City.

Founded in the 1920s by Julián’s grandfather, Jacobo Mar-gules, this professional audio firm started out as a manufacturer of gramophones, speakers, amplifiers, parts and other acces-sories for Radio Surtidor, at a time when the radio was the most basic communication device.

The firm later passed to Alejandro Margules, Jacobo’s son and Julián’s father.

An electrical engineer by profession, Julián Margules took over the family business three decades ago when it was still little more than a service shop.

As a university student, Julián would spend his free time “play-ing” at the family shop. These games, as he called them, resulted in the development of an active subwoofer for audio satellite systems, which he marketed on a small scale. “They sounded great.” So great some people still have theirs!

In time, Julián built the family business up into what it is today: one of the few that produces and markets high-end audio equip-ment in Latin America.

Margules is the proud creator of what is still deemed among the best amplifiers on the market 20 years down the line. The U280 combines the superior sound of vacuum tubes with cut-ting-edge technology, resulting in a sound not often heard. “It’s one of our star products, with its own technology and a sophisti-cated control circuit,” says Julián.

Another Margules product that comes highly recommended by specialized international audio publications is the Grand Orpheus,

MargulesAn Obsession with Sound Fidelity

Margules Audio, a Mexican firm that designs and manufactures audio systems, has shot to the top of the

billboard among music lovers with well-tuned ears. ____

by sandra robláguiphotos courtesy of margules

“Margules’ most ambitious loudspeaker project yet,” into which 50 years of research have been invested. Built from the best compo-nents, the system leaves you with the “sensation of a rare presence in a virtual space, in which multiple layers of notes unravel, taking the breath away from many music lovers.”

Julián believes in the power of invention. Seven years ago, Mar-gules Audio was the first to design and manufacture a dock to con-nect an iPod to a high-fidelity audio system.

“Mexicans are extremely inventive and we must make the most of that creativity. Mexico has lots of talent. We often turn to uni-versity students to help us develop technology for special projects. Young people have made an enormous contribution.”

According to Julián, music lovers remain faithful to Margules’ high-fi audio systems for four main reasons: “We have won interna-tional accolades, we have low prices and an innovative way of doing things, plus we offer honest, well-made, high-end products.” n

www.margules.com

Margules’ systems have received rave

write-ups in international magazines and come highly recommended

in Latin America by chains like CNN.

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34 Negocios ProMéxico Negocios ProMéxico 35

ItalIan desIGn In a MexIcan slInGshot

Polti’s activities in Mexico are vaporously rising. Al-though the market for the steam irons manufactured by the firm at its plant in Estado de México has been mainly local, now it’s aiming to smooth out the creases

in Europe, North and South America.Recently, Polti sent its first shipment of Vaporella irons to

Europe, and if everything goes full steam ahead, it could soon be exporting to the US.

“We are the only Polti plant in America. Our immediate goal is to export to the US, but we also hope to build a presence in Central and South America in the medium term,” says Polti de México CEO, Marco Perticato.

The Italian brand created by Franco Polti in the late 1970s is famous worldwide for its steam irons and integrated steam clean-ing and disinfection system. The company began marketing the Vaporella brand in Mexico in 1999, when it also started manufactur-ing selected products for the domestic market at its Mexican plant, manned by a team of 40.

Up until 2011, Polti de México focused its efforts on boosting sales of six of its Vaporella models, achieving an average annual growth rate of 10%.

According to Perticato, Mexico’s sales have been so strong partly because the company has 160 authorized service centers in con-stant communication with the factory.

“Polti isn’t a multinational with a million-dollar turnover; it remains a family business that made a concerted effort to es-tablish operations in Mexico because it believed in the market’s growth potential,” says Perticato.

The challenge now is to continue making inroads on the domestic market while exporting part of its production to Europe and the US.

Polti has plenty of incentive to jump on this productive train: volumes at its facility in Estado de México have surpassed those at its main factory in Bulgarograsso, Italy, without sacrificing the quality standards approved by the Istituto Italiano del Marchio

A decade ago, Polti singled out Mexico as a market with large growth potential. Persistence has paid off and now the Italian brand is

transitioning from supplying the local market to exploiting the country’s strategic position as an export platform.

____by omar magaña

photos courtesy of polti

di Qualità (IMQ), a certification with clout in Europe that has opened the door to markets in Italy, France, Spain, Germany and England for its Mexican-made products. Now Polti is seeking the safety seal of the US-based Underwriter Laboratories (UL) and the Canadian Standards Association (CSA) as a stepping stone to its incursion on these markets.

During this new export phase, the company plans to purchase the majority of its inputs in Mexico, something that hasn’t been finan-cially feasible to date in light of production volumes.

“Vaporella is a simple product, but it is made of specific materials like plastic resins, including wiring parts that are as important as the metal and aluminum components. We’ve identified suppliers in Mexico, but because of the large quanti-ties produced historically, it made more sense to import these components,” says Perticato. Thus, once the production at its Mexican plant increases, imported inputs will be substituted for Mexican-made ones.

Until the time comes to tackle markets north of the border, Polti’s strategy will be to export 60% of the products it manufactures in Mexico in 2012 –between 50,000 and 55,000 units of four Vaporella models– to European markets.

The domestic market will still be a challenge due to the presence of new low-cost electrical appliances that compete with the six Vaporel-la models currently manufactured for sale in the country. Another ob-stacle is the state-of-the-art technology these products incorporate, which can be intimidating to consumers who are not familiar with it.

Regarding its market diversification plans, Polti is well aware that in the US it will face competition from established manufacturers of peer systems, but is confident that the union of its products and the competitive advantages of manufacturing in Mexico, will help it take the market lead just as it did in Europe, where the Vaporella brand is known as the first to “bring the dry cleaners home.” n

www.polti.com

Volumes at Polti’s facility in Estado de México have

surpassed those at its main factory in Bulgarograsso, Italy, without sacrificing

quality standards.

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36 Negocios ProMéxico Negocios ProMéxico 37 Negocios ProMéxico 37

KoblenzForeverMade In MexIco

TThe vacuum cleaner, that essential accoutrement of modern-day living, has been present since the late 19th century. Today it comes in a myriad of styles and performs multiple functions, into which countless

hours of research have gone.If you don’t believe it, take a look at Koblenz’s catalogue,

which features about 20 different models of vacuum cleaner. And these are just the ones the company sells in Mexico. Add to these the ones earmarked for export and the ones manufactured for the US-based Emerson Electric and other US buyers.

There are vacuum cleaners with motors ranging from 1,200 up to 1,600 watts; ones that expel air and ones that don’t. Filtra-tion and suction systems vary depending on the model, as do the number of attachments and the type of cable used.

“Koblenz leads the Mexican market with over 60% of vacuum cleaner sales. This is the result of years of investing in the coun-try and offering customers innovative products that meet their needs,” says Koblenz Marketing Manager, Denise Díaz.

Needs Koblenz has been meeting since the second half of the 20th century. Founded by Walter J. Kohler in the spring of 1959,

Off-shoring is all the rage these days, but Koblenz has kept its plants in operation, confirming Mexico’s manufacturing prowess on the international market.____by omar magañaphotos courtesy of koblenz

in Cuautitlán, Estado de México, the company’s first products were voltage regulators, motors and pumps.

In 1963, Koblenz began producing vacuum cleaners targeting a generation of Mexican families that had moved into their own homes in the suburbs, complete with car, television, refrigerator, stove, washing machine and, of course, vacuum cleaner.

And the vacuum cleaner everyone wanted to own was La De-voradora (The Devourer), an appliance filled with attitude that became a cult object thanks to a successful media campaign. True to its name, this machine’s powerful motor literally de-voured everything that came into contact with its barred canine teeth, from dust to metal objects and stones.

Over the years, Koblenz gradually expanded its catalogue to include floor polishers, washing machines and refrigerators, to the point where it now offers an unparalleled selection of prod-ucts in these market segments.

At the company’s factory in Cuautitlán, 94 engineers spend their days inventing and developing the patents that have earned Koblenz a reputation as one of the most innovative companies in the electrical appliances sector, positioning it as a major-league

The products manufactured at Koblenz’ plants are sold in

27 countries, including the US, the world’s largest market

for electrical appliances and the main destination of the

company’s exports.

player on the global market. The brand also relies on industrial design consultants in Chicago and New York. “A significant part of the visual design is done in other countries,” says Díaz.

Another 140 people work in the company’s administrative area, 201 are employed at its commercial department and a team of 1,566 mans its two manufacturing facilities: the Cuau-titlán plant, which manufactures white goods, and the Vallejo Industrial Park complex in Mexico City, which specializes in vacuum cleaners and which Koblenz purchased from Hoover 12 years ago.

Every year, Koblenz invests around 3 million usd in special-ized machinery and tools for these manufacturing facilities, both of which have ISO-9001 certification. “This is a Mexican company that firmly believes in creating jobs in the country, even though we have to import some of our models,” says Denise Díaz. So while other manufacturers relocate their operations to Asia, Koblenz remains faithful to Mexico, which offers access to inter-national markets.

This same philosophy is applied to purchases of parts and components. “We do our best to find what we need in Mexico.

Only when we can’t find it here do we look elsewhere, which is not very often.”

The products manufactured at Koblenz’ plants are sold in 27 countries, including the US, the world’s largest market for electri-cal appliances and the main destination of the company’s exports.

Thorne Electric represents Koblenz in the US and the com-pany also manufactures cleaning appliances for various brands, primarily Emerson Electric. “If a company in the US, like Sears, is looking for a reliable manufacturer near them to manufacture a floor cleaning machine, Koblenz will produce a floor cleaner specially for them,” says Díaz, adding that “Koblenz is a very reli-able and prestigious manufacturer in Mexico.” The brand also has a network of service centers that traverses the US, including its overseas territories.

Koblenz ascribes its staying power on the highly contested appliances market to the values of good workmanship, durability and innovation that encapsulate the essence of a classic brand with a strong and successful bite. n

www.koblenz-electric.com

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38 Negocios ProMéxico Negocios ProMéxico 39

danFoss MexIcoyIelds Fresh FruIts

The seed this Danish company planted in Mexico 17 years ago is expected to yield fresh fruit in the last quarter of 2012 in the form

of a micro channel production line.____

by maría sávilphotos courtesy of danfoss

Danfoss, a global producer of components for refrigera-tion and air conditioning systems and motion controls, will begin manufacturing micro channels in Mexico in October 2012 at its plant in Apodaca, Nuevo León,

where it already produces dehydrating filters, thermostatic expan-sion valves, condensing units, industrial refrigeration valves and air conditioning distributors. By the end of this year, the company will have a new production line, fabricating a small radiator that helps improve the efficiency of air conditioning systems.

Danfoss posts annual sales of around 200 million usd in Mexico, where it employs approximately 1,000 people –a figure that is ex-pected to rise to 1,300 by 2013– making it a leading producer in its market niche. The products manufactured in Mexico are exported to Central and South America, the US, the Caribbean and Europe.

According to Ricardo Eduardo Cantú Moncayo, General Manager & GS Director of the company’s Mexican operations, “Danfoss has consolidated its operations in Mexico. We have exploited the coun-try’s geographical and commercial advantages to grow on our export markets. Over time, we have incorporated more operations and set up

new production platforms for dehydrating filters, thermostatic ex-pansion valves, condensing units and industrial refrigeration valves in the country. In 2011, we moved our air conditioning distributor production line from the US to Mexico and in 2012 we plan to set up a micro channel production line parallel to our operations in China.”

Mexico is one of the 18 countries where the group is currently present. Not only do Mexico’s production facilities boast TS, ISO, Clean Industry and SRC certifications but also the country “borders with one of the largest economies in the world, has a highly-skilled and well-educated workforce and highway and port infrastructure that facilitates the import and export of our products,” says Cantú, adding that “Mexico also has a stable economy and numerous im-port programs and trade agreements with countries like the US, Brazil and the European Union, all of which translates into quality, productivity and certainty.”

It all began back in 1933 when Danfoss founder Mads Clausen returned to his parents’ farmhouse in Denmark after completing his engineering studies and decided to start his own business manufactur-ing and selling automatic valves for refrigeration plants. Shortly, he

started exporting to the US and by the 1940s had production facilities in Norway, Finland, Spain, Sweden and the Low Countries (Netherlands, Belgium, Luxembourg, Northern France and Western Germany).

Global expansion followed and in 2000 the company’s Mobile Hydraulics business segment merged with Sauer, Inc. of Germany to form Sauer-Danfoss. In 2007, they expanded to Canada, China, the US, Romania, Poland and France, establishing Danfoss as one of the largest industrial companies in the world with 58 production facilities in 18 countries and 100 sales companies in 47 countries.

The group’s facilities in Mexico serve as a platform for exports to Central and South America and the US, making them essential to its international operations.

“We have the backing of our corporate offices and sister com-panies worldwide to ensure production lines at our manufactur-ing plants in Mexico are installed and operating properly and that they comply with the same international quality standards. To that end, Danfoss has implemented continual improvement programs that guarantee greater flexibility, lower production costs and high quality standards,” says Cantú.

Danfoss is a socially-responsible company that has taken steps to mitigate the environmental impact of its products with the help of a team of in-house experts that conduct research and develop new technologies designed to minimize electricity consumption and optimize the use of resources.

“We are working closely with our customers to develop energy efficient components. Air conditioning manufacturers are increas-ingly committed to the environment and are designing energy sav-ing products to reduce consumption.”

Mexico has been with Danfoss every step of the way and will continue to support the company in its environmental endeavors. “We started out making compressors. Now we make distributors, which used to be manufactured in the US. This year we’re going to bring a production line from China, and we transferred some of our valve and filter production to India. We’re posting steady, controlled growth, taking advantage of [Mexico’s] infrastructure and the expe-rience of its workforce,” says Cantú. n

www.danfoss.com

Danfoss posts annual sales of around

200 million usd in Mexico. The products

manufactured in the country are exported to Central and South

America, the US, the Caribbean and

Europe.

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40 Negocios ProMéxico Negocios ProMéxico 41

osraM takes

a shIne to MexIco

Light defines our perception of people and places by tinting our experiences, and, in this particular case, by setting ablaze Osram’s main goal: to provide lighting solutions that guarantee a better quality of life.

Osram is constantly researching new ways to create efficient lighting that meets its customers’ needs. “The lighting required for a room in a house isn’t the same as the one needed for an operating room. For example, we know that people at home prefer something warmer, whereas in an operating room, the stronger and brighter the light, the better. The lighting market is changing and we are ana-lyzing the introduction of new and highly-innovative products,” says Osram México President and CEO, Paolo Bortolan.

And Mexico might just be the answer. “We are considering the country as one of the best options for future investment. Although we are still at the evaluation phase.” However, says Bortolan, “Os-ram’s upper management sees it as an ideal choice. Mexico is among the few countries that offer good working conditions. One of its main advantages is the availability of quality training and education which help develop new technologies in the industry.”

Osram invests approximately 6% of its global annual revenues in sustainable product research and development to bring consumers energy-saving, eco-compatible products.

One third of the products the company manufactures in Mexico are sold on the domestic market and two thirds are exported to the US and Central America, where the country’s wide range of residential, institutional and street lighting covers the demand in these regions.

Osram has a manufacturing plant in Tepotzotlán, Estado de Méx-

The lighting Leviathan has set its sights on Mexico as a base for the development and

manufacture of a whole new range of energy-efficient, eco-compatible products.

____by maría sávil

photos courtesy of osram

One third of the products the company manufactures

in Mexico are sold on the domestic market and two

thirds are exported to the US and Central America.

ico, a second in Monterrey, Nuevo León, and a third in Ciudad Juárez, Chihuahua. All three facilities boast ISO9001 and ISO14001 certifi-cation and together employ around 2,000 people in the manufacture of incandescent, fluorescent energy-saving, low-voltage halogen, tension grid, mercury and sodium vapor, mixed, automotive and photo-optical lighting. The company also has trade offices in strategic locations throughout the country.

“Mexico has caught the world’s attention in terms of new tech-nologies development, competing strongly with countries like China, Indonesia and Malaysia for the establishment of industrial plants. This is why we see it as an ideal investment destination,” says Bortolan, who points out that although Mexico offers similar labor costs to those of other countries, it guarantees higher quality standards and technological innovation.

Mexico’s workforce, he adds, is another point in favor vis-à-vis the company’s decision to invest. “Compared to other countries, Mexico has low-cost, qualified labor. It’s also simpler to train people here. Workers on all levels are willing to learn, which is always a plus. Another factor to consider is that Mexican students leave col-lege and university with excellent English skills.”

Finally, Mexico’s geographical position and economic stability greatly facilitate business. “It’s a global logistics center that offers easy access to markets like the US and Latin America, while healthy public finances make it attractive to practically any investor,” con-cludes Bortolan. n

www.osram.com.mx

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42 Negocios ProMéxico Negocios ProMéxico 43

schneIder electrIc Innovates In MexIco

Investment in productive plants guarantees Mexico eco-nomic stability and sustainability. However, the setting up of design, engineering and innovation centers guarantees the know-how and creativity these same industries will

require in the long run.That is how Schneider Electric, a leader in energy manage-

ment and control products and services, perceives its presence in Mexico, China and India, the emerging economies where it has plants that manufacture products for export. Schneider has spe-cialized innovation centers in all three countries and in France, where new products and patents are developed and where im-provements to the existing energy solutions the company offers in 190 countries are made.

“Schneider began operating in Mexico indirectly, via compa-nies it took over in the country. The huge variety of products we offer can be traced back to our roots, to how we began operating in Mexico back in the 1940s,” says Enrique González Haas, president and CEO of Schneider Electric for Mexico and Central America.

The companies González Haas is referring to are Square D, Federal Pacific and Telemecanique, which came to Mexico be-tween 1946 and the late 1980s and that became subsidiaries of Schneider Electric in the 1990s.

“We noticed the competitiveness of Mexico’s engineers and the technical skills of the country’s university graduates,” says González Haas when asked about the expansion of Schneider Electric’s inno-vation center in Apodaca, in the state of Nuevo León.

The center was opened 10 years ago, at a time when Schneider Electric was building a manufacturing plant to complement its existing facility in the region. Now the company plans to transfer its engineers to a larger development at the Technological Re-search and Innovation Park (TRIP).

To date, 70 million usd have been channeled into the new center, which could be up and running during the second quarter of 2013 with 300 engineers –150 more than it currently has on its payroll.

The expansion of its innovation center in Northern Mexico is a good indicator of the long-term plans of this company that specializes in energy management, control and automation. ____by omar magañaphotos courtesy of schneider electric

The drive to develop new products and upgrade existing ones is part of

Schneider Electric’s strategy to hold on to its position as the leading supplier of the

industrial and home markets in the US and Canada.

“The center will have its own test lab and will be working with other similar centers at TRIP, with a view to establishing a scien-tific community of companies dedicated to innovation.”

According to González Hass, Schneider has forged close ties with institutions that produce trained engineers. The company runs spe-cialized energy workshops and Mexico’s universities supply Sch-neider Electric with graduates, some of who are placed at one of the company’s 12 manufacturing plants in Mexico, while others have the opportunity to work in research and development (R&D). The goal is for graduates to eventually make up 50% of the company’s workforce in Mexico, where it employs 8,000 people.

The drive to develop new products and upgrade existing ones is part of Schneider Electric’s strategy to hold on to its position as the leading supplier of the industrial and home markets in the US and Canada. The switch boxes, low-tension transformers, industrial control equipment, miniature switches and medium and low-tension power and control panels Schneider Electric manufac-tures in Mexico are exported mainly to North American markets.

Mexico is a valuable export platform but it also has excellent economic growth prospects and Schneider Electric intends to take full advantage of increased domestic demand for its exten-sive catalogue of products and services.

Products such as special electrical applications for data centers and technology rooms that require an uninterrupted supply of elec-tricity and for which domestic demand has increased in recent years, along with claim for the company’s energy optimization products.

Another niche where Schneider has made inroads is in secu-rity devices like access controls, perimeter surveillance systems and street monitoring software for buildings and public areas.

Schneider Electric knows it need look no further, since it has found the perfect partner in Mexico, which not only consumes its innovative services and products but also exports them to global markets. n

www.schneider-electric.com

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44 Negocios ProMéxico Negocios ProMéxico 45

PhiliPsEnlightening the Future

Philips has been around for 120 years and has been present for more than 70 in Mexico, where it started out selling imported products and was later reincorporated as Philips Sociedad Exportadora Trasatlántica. After the Second

World War, it began operating as Philips Mexicana. In 1957, the Vallejo plant was opened and in 2002, its corporate offices were re-located to Interlomas, in Mexico City’s Metropolitan Area.

Today this highly diversified, innovative company seeks to improve the quality of its customers’ lives via its Lighting, Health-care and Lifestyle business sectors, and has five manufacturing facilities in Mexico: in the states of Baja California, Chihuahua and Nuevo León –the most recent opened in mid-2011 in Apodaca.

Philips enjoys a privileged position on the lighting market, not just in Mexico, but globally. The firm is an industry leader, a posi-tion it has achieved given its capacity to develop highly-innovative, energy-efficient lighting solutions.

The global lighting market is experiencing historic changes. We are witnessing a technological transformation that has revolution-ized lighting in general and Mexico is not immune to those changes.

This technological watershed represents a unique opportunity for the industry and for Philips in Mexico. Mexican customers are increasingly aware of environmental, sustainability and energy

The development of a new portfolio for the Mexican market, and new solutions and services for private and public users opens the door to valuable opportunities for Philips.____by negociosphotos courtesy of philips

The global lighting market is experiencing historic

changes. This technological watershed represents a unique opportunity for

the industry and forPhilips in Mexico.

saving issues, and this has had a significant impact on the way we interact with lighting.

Philips’ most recent breakthroughs have been related to the development of new portfolios based on LED technology, which, aside from being extremely energy efficient, have many other benefits and open up new, unprecedented alternatives in lighting design.

Aside from being energy efficient, LED-based lighting technology has a useful life of 25 years or more. Light fixtures come in bolder and more versatile designs and can be controlled like never before –the digitalization of sources makes it possible to program color changes, dimming and countless other effects that used to be unimaginable.

Thus, the lighting sector is one of the areas in which Philips sees the greatest growth opportunities for the future. There are specific segments on which the company has focused its attention. One of them is street lighting. Substituting installed lighting for more effi-cient, better quality light sources will benefit the country by offering greater security and better quality of life for residents, reduced en-ergy consumption and the ensuing positive environmental impact.

Philips’ five industrial plants in Mexico are all specializing in lighting products, confirming the company’s market leadership and its confidence in the country.

The outlook for the sector tends to change rapidly, so the company’s main goal is innovation. That is why it is constantly seeking to meet the specific needs of increasingly discerning customers.

In that aim, Mexico is one of the most reliable countries for Philips. Not only is it a country of great natural and cultural wealth but the company’s employee turnover is lower there and the mar-ket is very diverse, which is another advantage, along with its stra-tegic geographical location, which facilitates exports and imports.

Philips has registered substantial and sustained growth in Mexico in recent years.

By capitalizing on valuable opportunities, Philips Mexicana has been able to surpass its targets and persuade its head office in Holland to allow more investments in the country. Philips manufacturing plants and corporate offices in Mexico currently employ over 4,000 people and the company exports to North, Central and South America.

There can be no doubt that Philips enjoys solid leadership and that the company has made the right decisions in consolidating its leading position in Mexico. n

www.philips.com

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46 Negocios ProMéxico Negocios ProMéxico 47

Since 1992, ABB has remained at the forefront of power and automation technologies in Mexico, and has been provid-ing solutions, products and services to a large and growing customer base in the country.

Throughout its life in Mexico, the company has participated in several high-impact projects. For instance, it developed a ma-rine platform for oil and gas production for Petróleos Mexicanos (PEMEX) Exploration and Production in Campeche, and has been involved in major projects of the four divisions of the state-owned company.

ABB has also supported Mexico’s Federal Electricity Commis-sion (CFE) with technologies to increase the carrying capacity of high voltage transmission systems.

Additionally, it is a leading supplier of automation and electri-fication technologies for various industrial sectors in the country.

Recently, ABB has confirmed its interest to continue working in Mexico by announcing its plans to invest in the expansion of its San Luis Potosí campus.

abb:Sustainable InnovationSwedish-Swiss ABB has important plans for its business in Mexico. The company is confident that strengthening its operations in the country is the right decision in order to preserve its global leading position.____by mariana moralesphoto courtesy of abb

In 2009, with an investment of nearly 40 million usd, the compa-ny opened its first facility in San Luis Potosí to integrate engineer-ing, sourcing and manufacturing activities for all of its five divisions –power products, power systems, automation products, process automation and robotics.

Currently, the San Luis Potosí facility manufactures and assem-bles high- medium- and low-voltage products; robotics, and control systems and automation products. It also offers standard and spe-cialized engineering services, and is home to a customer service center supporting utility, industrial and commercial customers of ABB automation equipment.

It is expected that by the end of 2012, ABB will officially announce a 10 million usd investment to foster the projects for technology devel-opment currently undergoing in its San Luis Potosí campus.

In those projects, sustainability is the key word. ABB is currently involved in the development of new technology models that respond to today’s environmental challenges, and its San Luis Potosí facility is expected to play a strategic role in that aim.

Opened in 2009, ABB’s facility in San Luis was the

first to integrate engineering, sourcing and manufacturing

for all of the company’s divisions. Currently, it

manufactures and assembles high- medium- and low-

voltage products; robotics, and control systems and

automation products.

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48 Negocios ProMéxico The Lifestyle.The CompleTe Guide To

The mexiCan Way of life

the Lifestyle BriefsPagE 50

a Brief History ofAlebrijesPagE 52

InterviewMiguel CalderónTheArtofRebellionPagE 54

48 Hours in...CampechePagE 58

DesignMexican JewelryDesignNow!PagE 62

Mexico according to...Ery CamaraPagE 72

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“We have developed a series of technologies and solutions to reduce and optimize power consumption, including: high efficiency electric motors, variable speed control of electric motors, technol-ogy to reduce losses in electric transmission and distribution sys-tems and a range of technologies and equipment for power genera-tion from renewable sources,” explains Daniel Galicia Virúes, CEO of ABB Mexico.

“As an example of the company’s innovative spirit, we have installed a photovoltaic system in our engineering and manufactur-ing campus in San Luis Potosí that will supply most of the energy needed for our operations there. In its first year, the photovoltaic system will allow us to avoid the emission of about 1,740 tons of CO2 into the atmosphere,” Galicia adds.

Why is ABB placing that strong bet on Mexico?Because of the same reasons the company decided to estab-

lish in the country in 1992 and later acquired two companies in it –Baldor Electric Company in 2011 and Thomas & Betts in 2012– to strengthen its presence in the domestic market and its exporting capacity. In Galicia’s words: “The economic develop-ment and industrial growth in sectors such as oil and gas, mining, automotive, aerospace, construction, consumer products and environmental care, have generated a very positive environment for a company with a wide range of products, services and solu-tions such as ABB. There is a great potential for future growth of our activities in Mexico.”

Fiveunder 30

the fresh faCes of Contemporary

mexiCan Design

66

Aside from its growing domestic market, Mexico represents a strategic location for ABB’s global business goals. “The closeness with the US allows us to have facilities in Mexico with a dual pur-pose: to supply domestic demand and export to North and South America,” explains Galicia.

Another advantage that ABB has found in Mexico is its manufac-turing and engineering capability, as well as the availability of quali-fied personnel. To date, the company employs more than 2,600 people along the country.

That is why ABB is determined to keep growing in the country. “We have been here for the last decades and we want to continue growing to meet the demand for the goods, services and solutions we provide,” concludes Galicia. n

www.abb.com

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The Lifestyle Briefs The Lifestyle Briefs

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ART&CULTURE

BOOKS ON THE MOVEA47 is perhaps the most alternative way to stock up on reading mat-ter. The brainchild of Alumnos 47, a non-profit organization that seeks to promote education, debate and critical thought, the mobile bookstore that is A47 was created by the architecture and design firm Productora. If readers won’t come to the books, then the books must go to the readers. In this case, a trailer full of 1,500 books that travels all over Mexico City. Inside is a small reading room that can be used for workshops and cultural presentations.

www.productora-df.com.mxwww.alumnos47.org

ARCHITECTURE

BGP ARQUITECTURAA Book Judged byits CoverThe Antonio Castro Leal library came first in the “Institutional” cat-egory of the 2012 Interior Design Awards organized by the Mexican Association of Interior Designers (AMDI).

Built to house the collection of author and humanist Antonio Castro Leal, the library takes up 600 square meters at the José Vas-concelos library in La Ciudadela area of Mexico City. The prestig-ious architect Bernardo Gómez Pimienta came up with the design based on Castro Leal’s personal library, hence the floor-to-ceiling dark-wood bookcases on which the books are sorted by country.

The 50,000-strong collection consists of approximately 38,000 books and some 10,000 documents.

www.bgp.com.mxSECONDHOMES

MEXICO:A RetirementFriendly DestinationAccording to data from the Mexican Association for Retirement Communities (AMAR), there are approximately 800,000 US reti-rees and expats living permanently in Mexico. These senior citizens are attracted by the low life-costs that Mexico offers as well as good quality in services and products and the closeness to their country of origin. It is estimated that in the near future, at least 10% of Cana-dian and US seniors will relocate to Mexico to live their retirement. This means that by 2020 the amount of foreign retirees in Mexico will exceed 2 million.

These astonishing facts indicate that the senior living and care industry, more specifically the retirement industry, could become the third most relevant in Mexico regarding foreign capital invest-ment. This represents numerous business opportunities and com-prises a very large potential market.

Facing this reality, AMAR held the Expo-Fair Baby Boomers 50+ Living Show, the first event ever created to promote the services and products available in Mexico for senior adults and especially for foreign retirees aging in place, from June 8 to 9, at the Hotel Real de Chapala, in Ajijic, Jalisco.

This Expo played host to several national and international en-terprises that showed the latest trends and business opportunities present in Mexico’s retirement industry.

www.amar.org.mx

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52 Negocios ProMéxico | The Lifestyle Negocios ProMéxico | The Lifestyle 53

Traditional handicrafts are the product of the creativity and dedication of generation after generation of arti-sans. Each particular craft has its own history and has evolved over the centuries to the point where it can no

longer be considered the work of one individual, but the product of the very culture that created it and has carried on the tradition. Nonetheless, some pieces can be credited to a specific author, an artisan with the ingenuity to create something new using com-monplace techniques and materials. Such is the case of the alebri-je, a creature that incarnates the spirit and aesthetic of a nation and that can be traced back to one man.

Pedro Linares López, an artisan from Mexico City, is credited with inventing the alebrije in 1936. These brightly colored crea-tures –a cross between animals and legendary beasts– have been blooming for less than a century, but are already deemed among the most quintessential of Mexican handicrafts.

The story goes that Pedro fell seriously ill and while agonizing, he dreamed he was walking through a forest. It was here among the trees that he came across these strange animals that kept chanting “Alebrijes, alebrijes, alebrijes.” He continued on his way and eventually met a man who told him to keep walking until he came to a tiny window, which he had to climb through to get out of the forest –and the dream. Much to his family’s astonishment, Pedro made a miraculous recovery and decided to bring the crea-tures from his dream to life.

Carved out of wood, coated in paper and meticulously hand painted, some claim the alebrije originated in Oaxaca, where the native Zapotec have a long tradition of wood carving and hand painting. Manuel Jiménez, a local artisan, is said to have intro-duced the alebrije to other states.

The towns of San Martín Tilcajete and San Antonio Arrazola in Oaxaca boast the greatest variety of alebrijes but unlike the other-worldly creatures of Pedro Linares, the alebrijes made in Oaxaca are modeled more on real life animals. Furthermore, the word ale-brije is definitely not of Zapotec origin but was first used by Pedro Linares when he unveiled his weird and wonderful creations.

Rather than detract from their charm, the controversy over their origin simply adds to their mystique. As colorful and eclec-tic as the land that breathed life into it, whether from Oaxaca or Mexico City, the alebrije is distinctly and undeniably Mexican. n

A Brief History of alebrijesMexico is famous worldwide for its handicrafts, which combine creative design and quality craftsmanship. Alebrijes, those magical creatures that populate a colorful world all of their own, are no exception.____by nadia escalante andradephoto archive

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54 Negocios ProMéxico | The Lifestyle Negocios ProMéxico | The Lifestyle 55

miguelcalderón

Miguel Calderón is a renowned contemporary artist both in his native Mexico and abroad. Founder of La Panadería –one of the first galleries

to promote underground art in Mexico City– this multidisciplinary artist shares his views on contemporary Mexican art with Negocios.

____by naomi palovits

photos courtesy of kurimanzutto

The Art of Rebellion

Anyone familiar with Miguel Calderón’s work knows that he lives to intervene in reality. While one day he might be portraying his family in nothing but their un-derwear, the next he will be editing a video of a soccer

match in which Mexico beats Brazil hands down. Miguel Calderón is one of those people who make it up as he

goes along. And what is art, if not that.

—Mexican author Guillermo Fadanelli claims it is not easy to classify your work since you are constantly disconcerting the spectator, yet you always seem to hit the nail on the head. How would you define yourself as an artist?Art is my way of clinging to life. I am obsessed with overturn-ing reality, even if I know I will never manage it. That is why I follow my instincts and do not stick to formulas. I explore every possible avenue to creating an alternate visual language to the pre-established one. My work is directly linked to situations that arise in my environment and the conclusions these lead me to. It is a never-ending process.

—When did you realize you wanted to be an artist?During my elementary school years, I used to draw caricatures of my math teacher with braids coming out his nose. My classmates found them funny and it earned me a certain degree of accept-ance among my peers. Drawing helped me escape a reality I was not comfortable with.

I remember when I was about eight my step-mom gave me and my sisters money to buy my dad a Christmas present. I persuaded my sisters to get him a Polaroid camera because I was nuts about them. In the end, I was the one who used the camera to take pho-tos of things I found interesting.

I especially remember some photos that got lost. They were of my sisters posing inside a huge dumpster. They were pulling fac-

es as if they had “had a stroke” –our mom and dad used to say, “If you pull a face, you will have a stroke and stay like that forever.”

Later on, when I saw some Hokusai engravings and some George Grosz drawings, they instantly reminded me of the pho-tos and caricatures I did when I was a kid.

—You have experimented with various disciplines in the course of your career. Is there one you identify most with or that you particularly enjoy?Recently, I have taken an interest in compiling books. I have loads of images stored. I like to establish a rhythm, add texts, edit and go over the order until it all makes sense. I prefer to insinuate stories using images but without tying all the loose ends for the reader, which makes his participation all the more important. That is why I like objects you can touch, consult and see, with no time constraints.

I know it might sound a little corny, but sometimes while mak-ing a video, I fantasize about being the captain of a pirate ship and having the mission to plunder everything that happens at a given moment. I always say I am going to fly a Jolly Roger at each pro-duction but when it comes time to shoot, I have so many things going on in my mind that I always forget. But it would probably make me look ridiculous anyway.

—What does being Mexican mean to you?Mexico offers endless possibilities when it comes to work. There are no limits. As an artist, living in the midst of chaos is appealing but as a citizen looking for somewhere habitable, it is not practi-cal. I used to think I could only work in Mexico but now I focus on what is around me, on discovering anomalies, interesting stories, objects that are out of place, no matter where I am. For instance, the in-situ piece I did recently –a week before my exhibition opened in Rochester– falls into that category.

“I managed to mount a sculpture that recreated the plastered white lines

in the wall, so it looked like a flash of lightning was

coming out of it.”

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—can you tell us more about that piece?I was walking down a street in Rochester and I stopped in front of a school because I noticed a crack in the bricks on the corner of the building. A man came over and asked me when the school was going to be demolished. I told him I was only taking photos because the shape of the bricks had caught my attention: they looked like a flash of lightning. He told me that, in fact, a flash of lightning had made the mark and that he was sad because they were going to demolish the school he had seen out his window for the last 26 years.

I never knew whether it was a true story or not but after a lengthy bureaucratic process, I managed to mount a sculpture that recreated the plastered white lines in the wall, so it looked like a flash of lightning was coming out of it.

I was happy with the sculpture because it transcended the museum walls. People would stop to take photos of this ephem-eral object that served no apparent purpose and that would eventually be demolished with the building. An engineer actually said he was struck by how the metal protruding from the wall remained upright and on leaving he shouted to us that a town like Rochester needed more people like us.

—How has the art scene in Mexico changed since you opened La Panadería?Before, when there was an event, we would make photocopies and I would walk my feet off handing out flyers. There was physi-cal contact with people, whereas today all it takes is a click to get information on what is happening.

For me there was something interesting about the obstacles to communication back then. On my constant search for venues, I was often surprised to discover places I never even knew existed. The great thing about Mexico is that, with or without the Internet, my search and those discoveries are not going to end any time soon.

La Panadería was aimed at nonconformist artists who did not fit in with the current scene. Doing “alternative” art was an act of rebellion in and of itself. Today there is more openness as regards different languages and the market. It is something artists are introduced to at a much earlier stage in their development.

Some years ago, things did not need so much explaining but today the “statement” has become essential to the survival of many works. I am not saying these are good or bad things; all I am saying is that the rules have changed.

In essence, I am looking for the same thing I have always looked

for when I view another artist’s work: something that makes me question my perception of reality and that underscores the fact that, in art, there are no rules and there will never be just one form of art.

—What are your ambitions as an artist?To follow my instincts wherever they take me and promote a life-style of absolute freedom. Expose the absurdity of the unnecessary protocols we have established in language and study my own nature and that of those around me in greater depth.

—What would be your dream project?I would like to say having no production restrictions and having unlimited resources at my disposal. But without those limitations, I would probably be bored to tears. Over the years, I have discovered that it is precisely those limitations that make my work interesting.

I would like to have access to a soap opera set for a year, with an experienced crew and a great art team, so I could tell and impro-vise stories as I go. But as I say that, I realize it is a contradiction in terms because there are no restrictions. If you think about it, there are millions of places that could serve as sets.

Failure is a key element of my work, especially my more recent

one, a large part of which focuses on research into incomplete, failed projects. But I have to admit it would be nice to have an unlimited bank account to make videos.

—Why portray your family in their underwear?When I suggested it to my granddad –the family patriarch, an Aus-trian who has survived two world wars– he said he would only do it if I got an official letter from the Louvre stating it was art. He was being sarcastic, but I got the letter through a curator I know and after years of insisting, he agreed, but only because he is “a man of his word.”

I managed to convince him there is more than one type of art. The best part was that afterwards he confessed he finally under-stood what contemporary art was all about.

Posing in underwear seemed more intimate to me than being naked. That piece was an exercise in persistence and a way of get-ting my family to open up.

—What are you currently working on?I was invited to work on an artists’ book. The only conditions are that it has to be in black and white and 150 pages long. Sometimes the simplest things turn out to be the most complicated. n

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Friday

Saturday48 Hours in caMPeche

There is no overstating the fact that Campeche has an enchanted atmosphere. At night, this walled city and the forts that once protected it from pirates are illuminated, giving way to a fairytale-like ambience.

Declared a World Heritage Site by the United Nations Educational, Scientific and Cultural Organization (UNESCO), Campeche is the pride and joy of its inhabitants, who are never tired of

watching tourists marvel at its well preserved colonial buildings with their pastel facades, not to mention all the natural, gastronomic and archaeological attractions the region has to offer.

____by gabriela damián miravete

9:00 p.m.After an energizing nap, it’s off to Casa Vieja de los Arcos for dinner. Sip on a refreshing house margarita as you admire spectacular views of the cathedral, which is lit up at night. Casa Vieja offers a delicious selection of international and Caribbean specialties featuring fresh fish caught in the bay. Don’t leave without trying their famous lime soup!

Casa Vieja de los ArcosCalle 10 No. 319 AltosCentro T. +52 (981) 811 8016casaviejacampeche.blogspot.com

9:00 a.m.Breakfast at Casa Don Gustavo is a great way to start the day. The hotel restaurant does a Campeche specialty known as dogfish bread, although “bread” is a misleading term for this delicacy consists of layers of tortillas, beans and dogfish smothered in a delicious tomato sauce.

10:30 a.m.As you explore the walled city you may get the impression you’re walking in well-trodden footsteps, and you’re not far wrong –the grid-like streets of Campeche were traced in the 16th century and follow the same path today as they did then.

There are plenty of attractions to enjoy, like the Francisco de Paula Theater, the baroque-style cathedral, the stately historic buildings of Plaza Independencia, the old customs building, the shipyards and dozens of well-preserved colonial residences.

A stone’s throw from Plaza Independencia is Puerta del Mar, one of the gates that granted access to the city back in the 17th century. Next to it is La Soledad, a fort that today houses the Museum of Mayan Sculpture, where you can see artifacts from Campeche’s numerous archaeological sites. The fort of San Francisco also has a museum dedicated to the city’s pirate-plagued past.

12:30 p.m.If you want to learn more about the city’s history but aren’t particularly excited about walking, hop aboard El Guapo or El Súper Guapo, the trams that tour the city’s traditional districts of Guadalupe, San Francisco and the fisherman’s neighborhood of San Román, with its famous Black Christ. Aside from the guide’s anecdotes, the tour’s highlights are the forts of San José and San Miguel. Perched on the hills above the city, they command unparalleled views of the ocean. You can even spot the mangrove swamps in the distance!

City tramLeaves every hour on the hour from 9:00 a.m. to 9:00 p.m.Parque Principal

7:00 p.m.Campeche has zealously guarded its heritage. Wherever you go, you will find vestiges of its glorious past, from the forts of New Spain to the French-style buildings typical of the Porfirio Díaz era.

If you’re reluctant to sacrifice the comforts of modern day living but want a taste of 18th century luxury, Casa Don Gustavo, a hotel in the downtown area of the city, fits the bill.

Another option, farther from the city and closer to the archaeo-logical site of Edzná, is the old henequen (agave plant fiber) haci-endas that have been converted into boutique hotels. Hacienda Uayamón is perhaps the most impressive. An ancient silk-cotton tree dominates the landscape and the swimming pool is framed by walls as old as they are high. For a memorable night, nothing beats a moonlight dinner on the terrace.

Casa Don GustavoCalle 59 No. 4, CentroT. +52 (981) 811 2350www.casadongustavo.com

Hacienda UayamónKm 20 on the China-Edzná-Uayamón highwayT. +52 (877) 789 4991www.haciendauayamon.com

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Sunday

10:30 a.m.Feeling sluggish? Wake up with a tasty cup of coffee at La Parroquia and do some people watching. For breakfast, we suggest the papadzules, dogfish pasties or steamed tamales.

La ParroquiaCalle 55 No. 8CentroT. +52 (981) 816 2530

If you have time, the Edzná archaeological site is just 60 kilometers from Campeche. This magnificent city had a population of 25,000 at its peak and is a fine exam-ple of the Petén, Chenes and Puuc architectural styles. La Luz de los Itzáes is a son et lumière show that’s well worth hanging around for. What better way to end a weekend of history and culture than in the company of the ancient Mayas.

12:00 p.m.You’ve seen them from the outside but you’re probably wondering what they look like on the inside. For a trip back in time, visit Centro Cultural Casa No. 6, a recreation of an upper class residence complete with 18th and 19th-century furniture and household objects.

Centro Cultural Casa No. 6Calle 57, between Calle 8 and Calle 10Centro T. +52 (981) 816 1782

6:30 p.m.Saved from walking the plank, it’s time to take a stroll and watch the sunset from one of the many viewpoints along the promenade, which has cycle and roller skating paths if you want to experience Campeche in a more extreme way.

2:00 p.m.Campeche is known for the variety and quality of its handicrafts, which range from traditional embroidered blouses, jewelry crafted out of bulls’ horns and wood carvings to colorful hammocks and the famous jipijapa (Panama hat) that adds that distinguished touch to any outfit.

There are several places specializing in regional handicrafts: Tukulná, located inside an 18th century mansion that has been restored to its former glory; the Ah-Kim-Pech bazaar facing the seafront, and Taller Maya, opposite Puerta de Tierra. The latter has an interesting and highly original selection of merchandise created by Mayan craftswomen and well-known designers. Being aware of the fact that your purchase will help support these women and their families is a great excuse to go shopping.

5:00 p.m.Spend the afternoon reliving the pirate days of Campeche aboard El Lorencillo, a replica of the ship captained by Sir Francis Drake. As the guides recount the atrocities that took place on these waters 500 years ago, the walled city and its forts appear in the distance with their cannons aimed out to sea, just like they appeared to the buccaneers of old. Shiver me timbers, matey!

El LorencilloDeparts from the dock behind El Faro del MorroAv. Resurgimiento No. 120Tours last approximately one hour T. +52 (981) 816 1990www.elfarodelmorro.com.mx

2:30 p.m.Time is running out and this might be your last chance to sample some authentic regional cuisine. For crab’s legs, dogfish tacos, blue butterfish in brine and Florida stone crab, nothing beats the Pedro Sainz de Baranda market. Or there’s Marganzo, where the xcatic chili pepper stuffed with dogfish and the crab quesadillas seasoned with Mayan herbs are the stars of the gastronomic show.

Mercado Pedro Sainz de BarandaCircuito Baluartes S/NCentro

MarganzoCalle 8 No. 267CentroT. +52 (981) 811 3898www.marganzo.com

9:00 p.m.Once the sun has dipped under the horizon, Campeche’s colonial past and urban legends come to life in this dramatized walking tour that leaves from Puerta del Mar. It also includes a visit to the fort of San Carlos, which now serves as a museum.

Meeting point: Puerta del MarFridays, Saturdays and Sundays: 7:00, 8:00 and 9:00 p.m.

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3:30 p.m.For some local fare, La Pigua does fresh seafood cocktails, crab legs, coconut shrimp and other regional dishes.

La PiguaMiguel Alemán No. 179-ACentroT. +52 (981) 811 3365www.lapigua.com.mx

Tukulná, Casa de ArtesaníasCalle 10 No. 333CentroT. +52 (981) 127 1768www.tukulna.com.mx

Bazar de Artesanías Ah-Kim-Pech Av. Pedro Sainz de Baranda S/N Centro comercial Ah-Kim-Pech, Locales 201- 223 Centro T. +52 (981) 811 7551

Taller MayaCalle 59 No. 69CentroT. +52 (981) 811 5703www.tallermaya.org

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mexiCan JeWelryDesign Now!

____by paola valenciaphotos courtesy of the firms

Perhaps it’s because Mexico is a country rich in silver and gold deposits but whatever the explanation, there can be no denying the tradition of jewelry making dates back centuries.

Today the industry is experiencing a renaissance of sorts, with young designers producing contemporary pieces that es-tablish a before and after in the trade. Fun, romantic and original, aside from precious metals, these young talents are explor-

ing new materials that give their pieces greater global appeal.

DIEGO DOmThis designer makes miniature works of wearable art which are the result of in-depth social research. Trap Door, a collection Dom created in conjunction with the sculptor Lio Shulze, is perhaps the clearest example of that. Here, Diego and Lio used materials like tree resins, amber, gem and volcanic stones to reinterpret the religious symbols of Santería.

Wind Children, Dom’s most recent collection, is inspired in Mex-ican mythology and crafted mainly in silver and gold.

ohohdom.blogspot.mx

DON’T TRaSH IT!Fernanda Barba makes fun jewelry that seeks to promote a sus-tainable lifestyle. Perfect for every occasion, her highly original pieces incorporate wood, Corian, acrylic and textiles, mostly wool remnants.

A native of Guadalajara, this up-and-coming designer is already sought-after, even though she’s recently launched her brand. Defi-nitely a young promise to keep tabs on!

www.dontrash-it.blogspot.com

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maRIaSImONMaría and Simón are relatively new to the jewelry business but al-ready their bold, geometric pieces have earned them quite a following.

Made of 100% environmentally-friendly materials, MariaSi-mon’s avant-garde style appeals to a younger crowd hungry for ac-cessories that combine both glamour and audacity. www.mariasimon.blogspot.comSaNGRE DE

mI SaNGREBorn in Monterrey, Nuevo León, Mariana Villarreal is the founder of Sangre de mi Sangre.

“The idea for Sangre de mi Sangre arose when I was faced with the prospect of parting with my work. My jewelry wants an owner but will always remain a part of me,” says Villarreal, who claims everyone who wears her jewelry carries a little bit of her with them, hence the brand name.

Almost all her pieces are handmade and one of a kind but what makes her collections so unique is that she scours the globe in search of her materials. “The philosophy of Sangre de mi Sangre,” she says, “is to purchase the stones in their country of origin.”

sdemis.blogspot.mx

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Five under 30 The Fresh Faces

of Contemporary Mexican Design A handful of rising design stars, all home grown talents and under 30 years of age, are starting to give

well known names a run for their money in a highly contested market.____

by pía lauphotos courtesy of the designers

There’s no denying Mexico has a well-established design scene, evidenced by the rising interest Mexican design garners on the home and international audiences. Many projects are afoot and some of the new names that are

already familiar in Mexico could soon break into global fame. A young generation of designers is in the making and their

work is getting more and more exposure, mainly because insti-tutions are taking pains to promote it and consumers are will-ing to fork out hard cash for it.

A highly motivated, productive generation that exhibits at trade shows and takes part in competitions in Mexico and abroad. A generation whose résumés boast studies at prestig-ious design schools and that is keen to keep abreast of the latest trends and the work of their peers around the world.

The creativity and drive of these young designers is aimed at a broader trend-seeking audience that is no longer content to just browse through design books and catalogs, but that actually wants to own Mexican design. It’s no coincidence that the de-sign aisle was one of the most popular at this year’s ZonaMaco, Mexico’s leading contemporary art fair.

Mexico’s institutions are also doing their part. For instance, Centro University recently published a Directory of Mexican

Design –available in print and online– that reflects the diversity of this star-studded firmament.

As is the New York Museum of Modern Art (MoMA), which has dedicated its Destination: Design program to Mexico this year. Thanks to the initiative of curator Ana Elena Mallet and the support of ProMéxico, the work of over 60 Mexican design-ers will be showcased and sold at MoMa stores.

Destination: Mexico has revealed that behind renowned names like Ariel Rojo, Emiliano Godoy and Héctor Esrawe, a young gen-eration is swiftly climbing up the ranks of Mexican design.

The designers mentioned below belong to this new generation, all are under 30 and some haven’t even graduated yet. In addition to a marked preference for local materials and environmentally-friendly production processes –a practice all designers would do well to adopt– another thing they have in common is that they all take a global approach to their work, i.e. they are aware of their context and often incorporate traditional manufacturing tech-niques or enlist the help of local artisans. However, rather than thinking of themselves as exclusively Mexican designers, they understand their place in the big design picture.

Furthermore, they have learned to use social media and the Internet to promote their work internationally.

Jorge Diego EtienneDesigner and blogger Jorge Diego Etienne (Tampico, 1983) lives and works in Monterrey, Nuevo León. After graduating from the Tec de Monterrey with a degree in Industrial Design, he went on to complete his studies at Central Saint Martin’s College of Art and Design in London, the Domus Academy in Milan and Par-sons School for Design in New York. He has also done intern-ships at Alessi, Vitra and ICSID Interdesign.

Some of his pieces, like Molcaware, take their inspiration from everyday objects like that Mexican culinary icon, the mol-cajete, while ones like Mesas Sultanas, a set of occasional tables made of concrete and glass, symbolize the industrial vocation of Monterrey. Sold internationally, Choose your Bullets is a pen stand that reminds us the pen is mightier than the sword or, in this case, the bullet.

www.jorgediegoetienne.comwww.designaholic.com.mx

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andrés LhimaAn industrial design student at the National Autonomous Uni-versity of Mexico (UNAM), some of Andrés Lhima’s (Mexico City, 1984) pieces have already been shown –and are on sale– at important venues like the Monterrey Museum of Contemporary Art (MARCO), the Franz Mayer Museum and the University Mu-seum of Science and the Arts (MUCA), both in Mexico City.

Having worked with designers like Ariel Rojo and Gloria Ru-bio from Arta Cerámica, Lhima firmly believes designers should come together as a community to share their experience and know-how.

His style is clearly influenced by mass Mexican culture, yet it offers a fresh vision and stimulating solutions. For instance, Ban-cos sentados uses local materials like leather, plastic mesh and cotton and is inspired by the image of the shaman.

Sillón Fidencio is a formless chair that can be stuffed with any-thing at hand –plastic bottles, clothes, etc. This piece was chosen to participate in Destination: Mexico.

www.andreslhima.com

moisés HernándezAnyone familiar with Moisés Hernández’s (Mexico City, 1983) work knows his pieces are a true reflection of his personality: frank and friendly, they always manage to elicit a smile. It’s not that they’re quirky; it’s more of an emotional connection in which texture and form come together, with color playing a key but restrained role.

Hernández studied Industrial Design at the Tec de Monterrey and worked for several design firms and brands in Mexico before going solo in 2010. Caramelo, a collection of tables and chairs with clean, simple lines, illustrates his clever use of color to communicate with his environment in a contemporary way, while Frutero Lago confirms that less is more when you have the creativity to rethink an object as mundane as a fruit bowl.

Hernández is currently pursuing a Master’s degree in product de-sign in Lausanne, Switzerland.

www.moises-hernandez.com

Christian VivancoDesigns that take their cue from mass culture aren’t always func-tional or can be too textual to withstand the test of time. Chris-tian Vivanco (San Luis Potosí, 1983) has managed to transcend the anecdotal to create entirely new pieces that appropriate the best of Mexican living.

Vivanco studied at the Elisava School of Design in Barcelona and returned to Mexico with two lamps he had designed for Alm-erich of Spain. He has since developed his own unique style that marries quality craftsmanship with subtle references to Mexican culture, like Los anafres, a set of occasional tables in different sizes; From a Lost City, a storage unit made of a shanty-town-like mishmash of materials and Sillas Nenas, a dressed-up set of chairs with plenty of places to go. Well thought out proportions make Vivanco’s pieces adaptable to almost any space and the per-fect complement to other furniture styles.

www.christianvivanco.com

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Elías Kababie Architect by profession, Elías Kababie (Mexico City, 1985) has diversified into interior and product design. His furniture and lamps tend to have a vintage aura but a closer examination re-veals formal solutions that allude to the most avant-garde trends in global design. Slice Lamp, Malte and Retro Loveseat could be mistaken for classic 1950s pieces, were it not for an incisive sense of humor that makes them both modern and timeless.

A graduate of Parsons School of Design in New York, Kababie founded his own firm in 2008. Aside from designing furniture, he has undertaken interior design projects. His work in that area can be seen at Azul Histórico, a traditional Mexican restaurant in Mexico City’s Historic Center.

www.kababiearquitectos.com

Five to FollowOther Mexican designers and firms that are making waves and are

worth keeping tabs on include:

• Rodrigo Da Silva •Winner of the 2010 D&AD Student Award, Rodrigo Da Silva’s

(Mexico City, 1983) pieces pick up on details of Mexican identity that generally go unnoticed to the untrained eye.

• masiosare Studio •Functionality and accessibility are the guiding principles of this

firm –Aldo Gutiérrez (Mexico City, 1985), Eduardo Meza (Mexico City, 1986) and Alfonso Díaz (Mexico City, 1986)–, which designs

those nifty products you never thought you’d need but that life wouldn’t be the same without.

es.masiosare.com

• 1050º Collective •1050º is a collective that brings together designers, artists and

artisans who work with ceramic under the banners of fair trade and sustainability.

www.1050grados.com

Iguana4 Studio •In the interests of sustainability, Iguana4 Studio –Juan Manuel

Flores Juárez (Mexico City, 1987), Aldo Jiménez Barragán (Mexico City, 1987), Carlos Ortega Morales (Mexico City, 1986) and Juan Carlos Turner (Mexico City, 1986)– uses only low environmental

impact materials.www.iguana4studio.com

• Ian Ortega •Ortega (Mexico City, 1983) studied Industrial Design at the Tec-

nológico de Monterrey and is currently senior designer for the Pirwi brand. An eco-friendly designer, his pieces employ biodegradable

materials and are free of chemicals, resins and solvent-based glues. www.ianortega.com

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Mexico According To

ERYCAMARA

Senegalese-born artist and art critic Ery Camara came to Mexico City in 1975 to study a Bachelor’s degree in Cul-tural Heritage Restoration. He then went on to pursue a Master’s in Museology and has been living and working

in the country’s capital city ever since. His résumé is anything but easy to sum up. Ery has spoken at

symposiums and seminars and served on the juries of biennials the world over, while his countless articles and essays on art and museology have been published in Mexico, the US, Germany, Canada, Sweden, Denmark, France, Cuba, the United Kingdom, Spain, South Africa and his native Senegal.

As a museologist, he has worked at the National, Viceroyalty and Dolores Olmedo museums in Mexico City and rendered his services as an independent curator at the Carrillo Gil, Modern Art, Tamayo and Fine Arts museums, also in Mexico City, and the Fine Arts Museum of Toluca in Estado de México.

Since 2004, Ery has been coordinating exhibitions and reg-istering works of art at the Antiguo Colegio de San Ildefonso, where he has overseen the curatorship of exhibitions like Gaudí, Walking Distance From the Studio by Francis Alÿs; Ricardo Legorreta, A Poet of Walls and Color; Portraits by Mario Testino; Revelations, The Arts in Latin America, 1492-1820; Through the Lens of Guillermo Kahlo and Henry Greenwood Peabody; Anni and Josef Albers, Latin American Journeys and Reflex by Vik Muñiz and Julio Galán, Thinking of You, to name a few.

After almost four decades in Mexico, Ery Camara is a “local” who has agreed to share his experiences and views on Mexico with Negocios.

—What brought you to Mexico?My interest in Mexican culture.

—What do you love most about Mexico?Its cultural dynamism.

—What do you miss most about Mexico when you are abroad?Its flavors, colors and people.

—Talking about flavors, what is your favorite Mexican dish?Chiles en Nogada.

—Where can you find the most fabulous Mexican food?In Oaxaca and Puebla.

____by paola valenciaphoto courtesy of ery camara

—When you want to relax, where do you go in Mexico? Oaxaca’s seaside: Huatulco and Playa Azul.

—Where would you recommend everyone who visits Mexico to go?To the National Museum of Anthropology in Mexico City.

—Do you have any piece of traditional Mexican art at home?I have some alebrijes and pieces of blown glass.

—Could you name some Mexican artists that everyone should know? Gabriel Orozco, Damián Ortega and Teresa Margolles.

—Which art galleries in Mexico should everyone visit?Kurimanzutto, Border, Garash, OMR, Nina Menocal and Enrique Guerrero.

—What makes you want to stay in Mexico?Love and happiness. n

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