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Ministry of Economic Development of Nuevo León

INVEST IN NUEVO LEÓNSEDEC PRESENTATION

MINISTRY OF ECONOMIC DEVELOPMENT


INVEST IN NUEVO LEÓNAGENDA

Why choose Nuevo León?Privileged LocationModern InfrastructureRobust EconomyWorld-Class EducationHigh Quality of Life

What does Nuevo León have to offer?Skilled, Productive and Quality oriented

Labor ForceDeveloped Local SuppliersSeveral developed Industrial areasHigh Quality of Life


WHY CHOOSE THE STATE NUEVO LEÓN?PRIVILEGED LOCATION

Strategically located in Meridian 100

• Equal distance to East and West coast

of United States and Canada

• Ideal location for exportations to the

US and México

• Proximity to seaports in the Gulf of

México and the Pacific Ocean


HOUSTON, TX. 445

BROWNSVILLE, TX. 199

ALTAMIRA, TAMPS 320

MAZATLAN, SIN. 562

HERMOSILLO, SON. 896

MANZANILLO, COL. 693

DISTANCE IN MILES:

GUADALAJARA, JAL. 481

MEXICO, DF 618 PUEBLA, PUE.

635

LAREDO, TX. 140

PHILADELPHIA, PA. 1,776

SAN FRANCISCO, CA1,653

COLOMBIA, NL. 154

DALLAS, TX.567



Major US cities within a 2,000 mile

radiusQuick access to major ports of entry in

Colombia, NL and Laredo, TXCOLOMBIA INTERNATIONAL BRIDGE

INSTALLED CAPACITY 12,000 TRUCKS PER DAY

CURRENT CAPACITY UTILIZATION

APROX. 33% (3,900 TRUCKS PER DAY)

TIME TO CLEAR CUSTOMS

8 MINUTES ON AVERAGE

FREE TRADE ZONE 332 HECTARES (820 ACRES)



Highly efficient highway and railroad

networks

Direct access to Highway 57, México’s

main trucking route and the Interstate 35

in the US

Railroad system operated by private

companies with connections to major ports

and cities in US and México

WHY CHOOSE THE STATE OF NUEVO LEÓN?MODERN INFRASTRUCTURE



World-class commercial airport in

Apodaca, NL New cargo terminal with a capacity of

20,000 tons per year Close to 190 weekly non-stop flights to

ten major US citiesMTY AIRPORT INTERNATIONAL FLIGHTS

ATLANTA 28 LOS ANGELES 14

CHICAGO 14 MIAMI 7

DALLAS 28 NEW YORK 4

HOUSTON 61 PHOENIX 7

LAS VEGAS 12 SAN ANTONIO 13

MTY AIRPORT CARGO CAPACITY

TONS PER YEAR

SIZE (M2)

CURRENT 20,000 4,000

POTENTIAL 40,000 8,000


The Latest Telecommunications

Services

Widespread availability of Fiber Optic, T1

and DSL

Capacity: 2.5 gigabytes per second

Services provided by leading companies

like: Telmex, Alestra (AT&T) and Avantel

(MCI World)



Surplus of electrical power and water

resourcesElectrical capacity exceeds demand by

2,350 MWRecycled water available for industrial

purposeMonterrey treats 100% of its waste water


Abundant supply of natural gas to

MonterreyMajor sources are located just 112 miles

from cityNatural Gas price is equal to Texas tariff


ROBUST ECONOMY

One of México’s leading industrial economies Responsible for 6.9% of the country’s GDP Producer of 9.2% of all of México’s manufactured

goods Highly attractive environment to foreign

investors FDI reached 1.74 Billion USD in 2002, 11.9% of

México’s total Monterrey declared “Best City for Doing Business in

Latin America” by Fortune Magazine in December

1999

FOREIGN DIRECT INVESTMENT IN NUEVO LEÓNTOTAL FDI

(USD)% OF MEXICO

TOTALJOBS CREATED

IN 2002 1.74 BILLION 11.9% 9,365

IN THE LAST SIX YEARS

9.5 BILLION 7.3% 78,351

WHY CHOOSE THE STATE OF NUEVO LEÓN?


ROBUST ECONOMY

Home to some of México’s largest industrial

groupsALFA Steel, Petrochemicals, Food, Telecomm, Autoparts

CEMEX CementCYDSA Chemicals, PlasticsFEMSA BeveragesIMSA Metal Mechanics, AutomotiveMASECA Processed FoodsPROEZA Autoparts, Processed Foods, SoftwarePROTEXA Construction, Petrochemicals, TourismPULSAR Biotech, Financial ServicesQUIMMCO Metal Mechanics, AutomotiveVILLACERO SteelVITRO Glass ProductsXIGNUX Electrical Products, Autoparts, Processed

FoodsIn 2002, total revenues of these 13 companies reached 34.3

Billion USD



ROBUST ECONOMY

Sample of international companies established in

Nuevo LeónABB LG

ELECTRONICSAISIN SEIKI MERCEDES

BENZALCOA-FUJIKURA MITSUBISHIBASF

PACKARDELECTRICCATERPILLAR PARKER

ZENITHCELESTICA PHELPS

DODGEDANFOSS PIOLAXDELPHI PIONEERDENSO SIEMENSELCOTEQ TOYOTA

TSUSHOGENERAL ELECTRIC UNION

CARBIDEJOHN DEERE VISTEONJOHNSON & JOHNSON YAZAKI



WORLD-CLASS EDUCATION

High concentration of quality schools

and universitiesHome to the leading university system in

Latin America, ITESMITESM and UDEM Universities accredited by

SACS More than 59 bilingual schoolsSix education institutions with 100% English

educationMore than 30 universities and 143 technical

schools

Key strategic project: MONTERREY, CITY OF KNOWLEDGE



WORLD-CLASS EDUCATION

Educational level is 3 years higher than

national average

Emphasis on the teaching of English as

a second language in public

elementary schools

Emphasis on technical training and

education



WORLD-CLASS EDUCATIONWHY CHOOSE THE STATE OF NUEVO LEÓN?

SECRETARY OF EDUCATION

EDUCATIONAL PLANNING AND RESEARCH DEPARTMENT

STATISTICS COORDINATION

NUEVO LEÓN

COURSES 2002 - 2003

GRADESTUDENTS SCHOOLS AND INSTITUTIONS

FEDERAL STATE PRIVATE AUT. TOTAL FEDERAL STATE PRIVATE AUT. TOTAL

Kindergarden 64,144 39,279 34,064 0 137,487 972 388 349 0 1,709

Elementary School 244,008 184,599 58,709 0 487,316 1,445 821 209 0 2,475

Junior High School 102,417 79,357 21,908 0 203,682 318 306 140 0 764

Technical Schools 3,365 8,693 14,646 4,969 31,673 4 29 105 5 143

High School 26,156 8,107 30,051 43,783 108,097 15 25 126 70 236

Undergraduate 4,427 1,247 51,611 58,275 115,560 6 3 62 29 100

Graduate Schools 320 866 4,658 3,911 9,755 2 3 33 24 62

Source: SEP (Public Education Ministry)


WORLD-CLASS EDUCATIONWHY CHOOSE THE STATE OF NUEVO LEÓN?

Number of Students in the University in Nuevo León in 2002-2003

Natural and Exact Sciences 1,239

Health 9,651

Agriculture and Livestock 867

Administration & Social Sciences 51,290

Engineering and Technology 44,837

Education and Humanities 5,343Source: SEP (Public Education Secretary)


HIGH QUALITY OF LIFE

Monterrey is recognized as one of the safest areas in

México

Life expectancy is higher than the national average

Per capita income is highest in the country after

México City

Local private hospitals provide top quality medical

services

Many sports and cultural events are held throughout

the year

American influence in business and social life is

widespread



WHAT DOES NUEVO LEÓN HAVE TO OFFER?MONTERREY METRO AREA

APODACAESCOBEDO

SANTA CATARINAGUADALUPE

MONTERREY

N

Municipalities with the highest

industrial activity

MONTERREY METROPLEX

San Pedro

San Nicolá

s


MUNICIPALITY OF APODACA

KEY DATA APODACA % NL

SURFACE AREA 250.9 KM2 0.4%

POPULATION 283,000 7.4%

ACTIVE POPULATION 108,000 - - -

0

10000

20000

30000

40000

50000

60000

70000

80000

0 to 9 10 to19

20 to29

30 to39

40 to49

50 to59

60 &more

NSP

POPULATION PROFILE

AGE

MAIN INDUSTRIAL PARKSStiva AeropuertoLa Silla ApodacaKalos Apodaca

Apodaca Technology ParkFinsa Monterrey

Huinala Industrial ParkMilimex Apodaca

ESTABLISHED COMPANIESCELESTICAELCOTEQEMERSON

LG ElectronicsOSRAMTAKATA

WHIRLPOOLYORK

Sources: INEGI 2000, Bancomext 2003

WHAT DOES NUEVO LEÓN HAVE TO OFFER?


MUNICIPALITY OF ESCOBEDO

KEY DATA ESCOBEDO % NL




0

10000

20000

30000

40000

50000

60000

70000

0 to 9 10 to19

20 to29

30 to39

40 to49

50 to59

60 &more

NSP

POPULATION PROFILE

AGE

Escobedo Industrial ParkJomyco Escobedo

Centro Urbano CanadáPeriférico Industrial ParkLas Américas Industrial

Park

INTERNATIONAL (NAVISTAR)

MATTELDOFASCO



MAIN INDUSTRIAL PARKS

ESTABLISHED COMPANIES


MUNICIPALITY OF GUADALUPE

KEY DATAGUADALUP

E% NL




0

20000

40000

60000

80000

100000

120000

140000

0 to 9 10 to19

20 to29

30 to39

40 to49

50 to59

60 &more

NSP

POPULATION PROFILE

AGE

Kalos Ruiz CortinesKalos GuadalupeKalos San Rafael

La Silla Industrial ParkInterpack Industrial Park

DELPHIKEMETPARKER

GOODMANS






MUNICIPALITY OF MONTERREY

KEY DATAMONTERRE

Y% NL


POPULATION 1,110,000 29.0%


0

50000

100000

150000

200000

250000

0 to 9 10 to19

20 to29

30 to39

40 to49

50 to59

60 &more

NSP

POPULATION PROFILE

AGE

Mitras Industrial ComplexStiva Barragán

GE POLIMERANALLIANCE PLASTICSKOHLER SANIMEXWYMAN GORDON






MUNICIPALITY OF SANTA CATARINA

KEY DATASTA

CATARINA% NL




0

10000

20000

30000

40000

50000

60000

0 to 9 10 to19

20 to29

30 to39

40 to49

50 to59

60 &more

NSP

POPULATION PROFILE

AGE

Las Palmas Industrial Park

Jomyco Santa CatarinaMilenium Santa Catarina

Mitras Industrial CityKalos Santa Catarina

CATERPILLARCARRIER

JOHN DEERESIEMENS VDO

TAKANISHI






OUR INCENTIVES

Payroll Tax (2%) reduction incentive 50% reduction for one full year, in municipalities

included in the Monterrey Metro area 95% reduction for one full year, in municipalities

outside of the Monterrey Metro area

Mixed Labor Force Training Program Government hires workers for a three-month training

period, with a salary equal to 1.5 minimum wage Foreign company must hire up to 70% of the trainees

by the end of the program



MAQUILADORA, PITEX AND PROSEC PROGRAMS

Maquiladora and PITEX Programs Federal programs that allow the

temporary import of raw materials,

machinery and equipment into Mexico for

manufacturing purposes If NAFTA origin, value-added tax and

import duties are exempted If Non-NAFTA origin: value-added tax is

exempted, but import duties are payable

unless a PROSEC program is used



MAQUILADORA, PITEX AND PROSEC PROGRAMS

PROSEC Programs

Applicants may import raw materials,

machinery, components and equipment

under preferential tariffs from non-NAFTA

countries

Useful when importing goods from non-

NAFTA countries to be processed and

then exported to a NAFTA member

country



NUEVO LEÓN INVITES YOU TO SHARE ITS ECONOMIC SUCCESS

ELOY CANTÚ SEGOVIA SECRETARY OF ECONOMIC DEVELOPMENT

TEL: + 52 (81) 2020-656500E-MAIL: [email protected]

.

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