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Negociospara exportadores

Special ReportMexicos Aerospace Clusters

Guest OpinionFEMIA Achieving future goals

MEXICAN AEROSPACE INDUSTRYA booming innovation driver

Enrique Pea NietoPresident of the United Mexican States

Mexico offers significant strengths and competitive advantages that must be leveraged more ef-fectively to promote greater, sustained, and sustainable economic growth. Through in-frastructure development, innovative public policies, and the transformational reforms that have been passed, our country can achieve its true potential and consolidate its position as an emerging nation.

This is clearly depicted by the Mexican aerospace industry, which is now experi-encing rapid growth.

Just ten years ago, only 61 companies were engaged in this sector. Today, there are 300, employing more than 45,000 highly-skilled Mexican workers. In the same period, total Foreign Direct Investment in the sector has reached almost 1.8 billion dollars.

Mexico is one of the worlds leading suppliers of aeronautical parts and com-ponents. In 2014, export sales in the aero-space sector surpassed 6.3 billion dollars, achieving year-on-year growth of 20% over the past decade.

This outstanding performance is indica-tive of the quality and vibrancy of the in-dustry. I am confident that, with the talent and dedication of the Mexican people, we will continue to make gains in this high-end industry to quickly become one of the lead-ing manufacturing and maintenance centers in the world.

This publication provides the reader with valuable information and cutting-edge content on the present and future develop-ment of this high value-added productive industry.

Table of Contents April 2015

Cover Feature

The Mexican aerospace indusTry: panoraMa of a growing sTraTegic secTorBy RicaRdo caRRasco

From ProMxico

FAMEX 2015An event where business flies

Mexicos Aerospace Clusters

FEMIAAchieving future goals

inteRview with Benito GRitzewsky kRiGeR

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30UNAQinteRview with JoRGe GutiRRez de velasco RodRGuez

Open skies agreementsBy antonio ceRvantes acosta

IPNinteRview with scaR RoBeRto Guzmn caso

Airbus Group in Latin America

SafraninteRview with daniel PaRfait

Deltaplast MxicointeRview with GeRaRd didienne

SIASA AirinteRview with feliPe BRiones soto

AISGinteRview with Juan antonio teodoRo mndez

A&P SolutionsinteRview with mnica RiveRa cRdenas

Peasa AutopartesinteRview with RicaRdo navaRRete

Guest OpinionMexicos Partner

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Special Report Guest Opinion

18 38

The Lifestyle The CompleTe Guide To The mexiCan Way of life

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Haute couture in the air

Paris rises to its feet before mexican talent

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QuertaroLive it to believe itBy mexico touRism BoaRd

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High-flying menus

Great chefs in the worlds airlines

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The most sustainable airport in the world

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proMxicoFrancisco N. Gonzlez Daz

Ceo

Karla Mawcinitt BuenoCommunication and image

General Coordinator

Felipe Gmez antnezdirector of publications and Content

felipe.gomez@promexico.gob.mx

Jorge arturo Morales Becerra Contreraseditorial coordination

jorge.morales@promexico.gob.mx

Advertisingnegocios@promexico.gob.mx

Cover Photoarchive

Negocios ProMxico es una publicacin mensual editada por ProMxico, Camino a Santa Teresa nmero 1679, colonia Jardines del Pedregal, delegacin lvaro Obregn, CP 01900, Mxico, DF Telfono: (52) 55 5447 7000. Portal en Internet: www.promexico.gob.mx; correo electrnico: negocios@promexico.gob.mx. Editor responsable: Felipe Gmez Antnez (alta en trmite). Reserva de derechos al uso exclusivo No. 04-2009-012714564800-102. Licitud de ttulo: 14459; licitud de contenido: 12032, ambos otorgados por la Comisin Calificadora de Publicaciones y Revistas Ilustradas de la Secretara de Gobernacin. ISSN: 2007-1795.

Negocios ProMxico ao 8, nmero VI, 8 de junio de 2015, se imprimi un tiraje de 8,000 ejemplares. Impresa por Ca. Impresora El Universal, S.A. de C.V. Las opiniones expresadas por los autores no reflejan necesariamente la postura del editor de la publicacin. Queda estrictamente prohibida la reproduccin total o parcial de los contenidos e imgenes de la publicacin sin previa autorizacin de ProMxico. Publicacin gratuita. Est prohibida su venta y distribucin comercial.

ProMxico is not responsible for inaccurate information 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 authors statements; therefore the responsibility of each text falls on the writers, not on the institution, except when stated otherwise. Although this magazine verifies all the information printed on its pages, it will not accept responsibility derived from any omissions, inaccuracies or mistakes. June 2015.

download the pdf version and read the interactive edition of

Negocios ProMxico at negocios.promexico.gob.mx.

ediTorial council

consejo ediTorial

Ildefonso Guajardo villarreal

Francisco de rosenzweig Mendialdua

enrique Jacob rocha

Francisco N. Gonzlez Daz

embajador alfonso de Maria y Campos Castell

Luis Miguel Pando Leyva

Francisco Javier Mndez aguiaga

rodolfo Balmaceda

Guillermo Wolf

Jaime Zabludovsky

Gabriela de la riva

adolfo Laborde Carranco

Silvia Nez Garca

Mara Cristina rosas Gonzlez

ulises Granados Quiroz

Karla I. Mawcinitt Bueno

This publication is not for sale.

Its sale and commercial distribution are forbidden.

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Frompromxico

Mexico is a country that is

flying high in the aerospace

industry. This is possible

thanks to our experience in

high-tech sectors, our proximity to the

USAthe most important market in the

world, our infrastructure and major

transport and logistics networks, having

joined the Wassenaar Arrangement and,

above all, our talent and human capital.

These competitive advantages have en-

abled the operations of major aerospace

companies in Mexico. Some relevant fig-

ures demonstrate our success: at the be-

ginning of the 21st century, our aerospace

exports were almost nil. In 2014 we ex-

ported over 6.3 billion dollars. Another

fact illustrates our growth: in 2005 there

were 61 aerospace companies established

in Mexico. Today, one decade later, more

than 300 companies and agencies make

up the sector.

The consolidation of Mexico as an im-

portant investment destination and as a

platform for development in this indus-

try has been possible thanks to the ef-

forts of our triple propeller: government,

academia and industry. This year we cel-

ebrated together the first Mexican Aero-

space Fair, which was attended by 190

companies from 11 different countries.

The success of this first edition confirms

the strength of the Mexican aerospace

sector around the globe.

Our country reaches higher altitudes

every day. Proof of this are the results ob-

tained in the last years in the aerospace

sector and its growing success. Today, as

never before, Mexico flies high and with

wings of its own.

Welcome to Negocios ProMxico!

Francisco N. Gonzlez DazCEO

ProMxico

Para exportadores

MxicO y la iNduSTRia aeROeSPacialuna realidad ms all de las proyeccionesPoR luis eRnesto Gonzlez RoJas y maRianela PRez fRas oRteGa

de ProMxico

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centros de entrenamiento de airbusVanguardia en capacitacin en una industria creciente

apoyos de ProMxico a empresas manufactureras

Premio Nacional de Tecnologa e innovacinImpulso al valor agregado

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77

TechBaUna aceleradora con xitoentRevista con leoncio salaBuRu y

dR. naBil saad

cmara de comercio Franco-MexicanaUn facilitador de negocios entre Francia y MxicoPoR alfRed RodRGuez

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BRIEFS BRIEFS

AUTOMOTIVE JaPaNeSe cOMPaNy iNveSTS iN iRaPuaTO

Kinugawa Mexico, manufacturer of hoses, seals and gaskets for the automo-tive industry, announced the expansion of its production plant in Irapuato, Guanajuato. The Japanese firm began operations in Mexico in 2010 and has already invested more than 29 million dollars at its Irapuato facility. It has also generated 460 jobs in the region. The automotive boom that has taken place in the Bajo region of Mexico has led to the expansion of the installed capacity of a number of auto parts companies. Kinugawa Mxico has established nine production lines at its production plant.

www.kinugawa.com.mx

MANUFACTURING

cROwN BeveRaGeS will Build PlaNT iN NuevO leN

This company, manufacturer of aluminum lids and bottle caps, announced investments of 120 million dollars in the construction of its second plant in the state of Nuevo Len. The company expects to produce 2.3 billion aluminum cans per year, mainly to supply the brewing industry, which has an annual growth rate of 6%.

The new facility will have two production lines to manufacture 2.3 billion cans of different sizes that will stock the Mexican market. This plant will generate 160 direct jobs and over 450 indirect jobs. The company, with headquarters in Monterrey, has operations in Toluca, State of Mexico (with one of the largest aluminum can plants in the world); Ensenada, Baja California; Guadalajara, Jalisco; and it has a glass bottle factory in Orizaba, Veracruz.

www.crowncork.com

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AUTOMOTIVE

BOScH aNd weRNeR exPaNd THeiR PlaNTS

The two auto parts companies, Bosch and Werner, announced the expansion of their production plants. Bosch, a German com-pany, will invest around 142 million dol-lars in Mexico, mainly to build a plant for electrification systems and other facilities to manufacture water heaters. The output of this plant will be destined for the domestic market as well as for export to Latin America.

For its part, the Werner Company, an Ameri-can firm, inaugurated its fifth manufactur-ing plant in Ciudad Jurez, Chihuahua. The new facilitywhich required an investment of approximately 10 million dollarswill generate 150 new jobs. Werner Company manufactures 20 thousand ladders daily at its four current plants in Ciudad Jurez, and exports 85% of its production to the USA, Canada and Asia. The remainder is for the domestic market.

www.bosch.com.mx

AEROSPACE

aiRBuS exPlOReS aSSeMBliNG HelicOPTeRS iN MexicO

The European consortium Airbus is planning to increase its investment over the next five years to supply Mexico. Although the firm acknowledged that it is seeking to assemble helicopters in Mexico, first it will ensure the local supply chain before concluding with a finished product.

At the recent Santa Luca Aeronautical Fair held in Mexico, Frdric Garcia, CEO of the Mexican subsidiary, said that the company is currently not manufacturing specific parts for helicopters, but that given the maturity of the Mexican industry they are contemplating the possibility of assembling these vessels in the short and medium term.

According to the company executive, Mexico is the only country where they are analyz-ing this process. Currently, Airbus manufactures doors and hatches for its A320 aircraft, wiring for the A380, and certain electromechanical parts for the A350.

www.airbus.com

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AEROSPACE

SedeNa will acQuiRe TwO aiRcRaFT TO ReNew iTS FleeT

The Ministry of National Defense (Sedena) reported that it would purchase two aircraft that can operate in all weather conditions. The acquisition will cost almost 400 million dollars. These planes will be used to transport personnel throughout the national ter-ritory and, if required, also abroad. The institution considers the possibility of strengthening the fleet of Air Squadron 502, which consists of three 34 year-old aircraft.

The new airplanes must have modern equipment, adequate tech-nical and operational specifications, be capable of operating in all weather conditions and allow timely response to any needs arising in the country.

www.sedena.gob.mx

AUTOMOTIVE

PSw will iNveST 25 MilliON dOllaRS iN a New PlaNT

Poliuretanos Summa Woodbridge, better known as PSW, announced the expansion of its automotive component production plant, for which it will invest around 25 million dollars. The company pro-duces foam seats, wire for automobiles and expanded polypropylene parts (EPPs) that reduce the noise of vehicles in motion.

PSW is a Mexico-Canada joint venture with three business units installed in Len, Guanajuato over the past decade, and has gener-ated over 300 direct jobs. Currently, the firm is planning to build a second plant, which will be located in the Salamanca-Celaya corridor, where major automotive OEMs are located.

www.woodbridgegroup.com

98 June 2015 June 2015

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June 2015

THe MexicaN aeROSPace iNduSTRyPanoRama of a GRowinG stRateGic sectoR

THE GLOBAL ENVIRONMENTThe global aerospace industry is experienc-ing one of its best moments. For the next twenty years, major aircraft manufacturers have an attractive market demand before them, with growth scenarios of 31,400 air-craft of less than a hundred seats, which will generate an economic impact of close to five trillion dollars. According to figures from industry experts, the supplier base that serves this important sector will pro-vide approximately three trillion dollars.

This reflects the huge market oppor-tunity that the industry will experience in the next two decades. At the Seminar on Foreign Investment held during the most recent Aerospace Fair, the CEO of Airbus in Mexico wondered how much participation our country could capture. The answer, surely, is that there is a great opportunity.

Cover Featurephotos archive

the aerospace industry is a strategic sector for Mexicos development, a country with significant competitive advantages for the establishment of new enterprises.

by RICARdO CARRASCO, AEROSPACE INdUSTRy COORdINATOR, PROMxICO

BRIEFS

AEROSPACE

BOeiNG, iNTeReSTed iN iNveSTiNG iN cHiHuaHua

The Boeing aerospace firm has expressed interest in investing in Chihuahua. During a trade mission, the American company and several of its suppli-ers learned about the competitive advantages, infrastructure, market and investment opportunities offered by the northern Mexican state.

Boeing is organized into two business units: Boeing Commercial Airplanes and Boeing Defense, Space & Security. The company executives held a meet-ing with representatives of the Aerospace Cluster installed in Chihuahua, where around 35 companies and divisions provide employment to about 13,000 people in the state capital and in Ciudad Jurez.

www.boeing.com

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AEROSPACE

TaR aiRliNeS will OPeRaTe iN THe MexicaN MaRkeT

Transportes Areos Regionales (TAR) will invest around 265 million pesos in purchasing 14 Embraer ERJ145 air-planes, as well as building its operations and service base. The aircraft will each have a capacity for 50 passengers and will be used to service routes requiring less than 1.5 hours in flight, bound for the cities of Acapulco, Durango, Guadalajara, Ixtapa, Los Mochis, Monterrey, Puebla and Vallarta.

The Mafra Group owns the airline and is seeking to op-erate routes not covered by main airlines like Aeromxico, Interjet and others. With these actions, TAR expects to increase the movement of 226 thousand passengers at the Quertaro Airport, and creating 320 direct and over 1,000 indirect jobs.

www.tarmexico.com

AUTOMOTIVE

BRidGeSTONe iNveSTS 40 MilliON dOllaRS TO MaNuFacTuRe THe RuN-FlaT MOdel

Daniel Benvenuti, President of Bridgestone for Mexico and Central America, announced that the company will invest 40 million dollars this year and the next to build a new production line for premium tires at their plant in Morelos. Operations will commence in 2016. The company is interested in manufacturing a tire known as Run-Flat, in order to become one of the main tire suppliers for new luxury vehicle plants. Run-Flat production requires more time in the manufacturing process, compared to traditional tires that are produced in 24 hours. Once the production line is operational, Bridgestones goal is to produce 22,000 tires per day.

www.bridgestone.com.mx

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HUMAN CAPITALOne of the strategic pillars of the sec-tor is the development of human capital. In this regard it is important to note that schools are making great efforts to support the preparation, training and certification of young Mexicans at different levels re-quired by the industry: skilled technicians, engineers, and so on.

Examples of these initiatives are the creation of the UNAQ, due to the arrival of Bombardier to the city of Quertaro. Since this industry is already present in eighteen states, government strategies both at the federal and state levels are aligned with the private sector through various in-stitutions such as the National Polytechnic Institute (IPN), and the Technological In-stitute of Monterrey for Advanced Studies (ITESM), among others.

Cover Feature

A STRATEGIC SECTOR FOR THE COUNTRYThe aerospace industry is a strategic sector for the development of Mexico, a country with significant competitive advantages for the establishment of new companies. At the same time, the potential impact on the national economy is high.

Mexico has one of the most open econ-omies. It has a network of free trade agree-ments with 45 nations, together with ar-rangements for the promotion and recip-rocal protection of investments and agree-ments of limited scope (economic comple-mentarity agreements) in the framework of the Latin American Integration Associa-tion (ALADI). It also has skilled labor and, above all, it harbors efforts devoted to spe-cialized investment, such as the Aeronauti-cal University in Quertaro (UNAQ).

The strategic nature of the sector was one of the results that a study commis-sioned in 2009 by the Ministry of Econ-omy showed. In particular, the assessment of our competitive advantages took into account production, operation and trans-port costs, as well as investment risk. The comparison was favorable for Mexico against countries like Brazil, Colombia and India, and also reflected confidence in our macroeconomic stability.

Meanwhile, assessment of the poten-tial impact on the Mexican economy must consider the countrys capacity for growth,

for creating well-paid jobs that will remain in the country, as well as its interaction with other sectors. Wage earnings at con-stant prices in the aerospace industry are equivalent, on average, to 1.2 times those of other manufacturers and they grow at a faster rate in Mexico.

In 2014, the value of production and exports of aeronautical products reached 6.4 billion dollars, maintaining a growth of 18% during the last ten years, generating more than forty thousands jobs, which has placed Mexico as the sixth supplier to the USA. This industry has taken advantage of the agreements that the Mexican govern-ment has established in the sector, such as the Bilateral Aerospace Safety Agreement (BASA) and the Wassenaar Agreement on Controls of Dual-Use Manufactures. The supplier base has quintupled, growing from 65 companies in 2005 to 305 companies registered in 2014.

According to data from the Mexi-can Federation of the Aerospace Industry (FEMIA), companies are classified accord-ing to the scope of their activities as fol-lows: manufacturing, 70%; aircraft main-tenance, repair and overhaul (MRO), 15%; and engineering and design, 15%.

As for the location of clusters, the aero-space industry in Mexico is distributed in eighteen states, with a strong presence in the areas shown on the following map.

Cover Feature

FUTURE OUTLOOKPro-Areo 2012-2020

Mexicos Strategic Aerospace Program (Pro-Areo) integrates the strategies and poli-cies to promote the development of the Mexican aerospace industry, with the aim of placing Mexico among the top ten countries in world sales.

GOALSDerived from these strategies, these are the proposed targets for 2020:1) Place the country at an international level within the top ten in terms of exports.2) Export more than 12 billion dollars worth of aerospace goods.3) Account for 110,000 direct jobs, including between 30% and 35% of posts with

an engineering degree level or higher.4) National integration of 50% in elaborate manufactures for the industry.5) Second place in the manufacturing sector in terms of the value added/sales ratio.

aeROSPace cluSTeRSin mexico

The aerospace industry in mexico is distributed in eighteen states.

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The seminar was attended by around 150 participants, including visitors and foreign suppliers (invited by Airbus, Hon-eywell, Safran and Bombarbier, among others), Air Force Commanders from sev-eral countries and commercial representa-tives from embassies interested in invest-ment issues in Mexico.

BOEING MEXICO SUPPLIER SUMMITAfter months of preparation and organiza-tion, Boeing, FEMIA, American Industries and ProMxico conducted their first in-ternational supplier summit in Mexico on April 21 to 23.

The goal of this first supplier forum was to promote the alliance of Boeing with Mexico and increase exports of compo-nents, which in 2014 exceeded one billion dollars, and to encourage the installation of new suppliers of the company that are not yet represented in Mexico, to increase foreign investment in this sector.

On April 21, ProMxico held the aforementioned seminar, which reported on the reasons why it is attractive to invest in Mexico. FEMIA detailed the situation of the sector, and highlighted the states with the highest foreign investment in the aerospace industry, such as Baja Califor-nia, Chihuahua, Sonora and Quertaro.

A panel and a question and answer session were held with the representa-tives of the aerospace clusters located in these four states. American Industries ex-plained the Shelter program as an option to initiate manufacturing operations in Mexico. The event closed with a confer-ence hosted by Bancomext, detailing the financial support available for investors, and the participation of Bob Noble, Vice President of Boeing, who offered a busi-ness perspective of his company in the near future.

On April 22, the group attended the Aerospace Fair Mexico 2015 for business meetings, and on the next day the group was divided into four sub-groups for visits and presentations in Baja California, Chi-huahua, Quertaro and Sonora.

CONCLUSIONSIsaac Newton said: If I have seen further it is because I stand on the shoulders of gi-ants. The Mexican aerospace industry in on the shoulders of great partners, such as Boeing, Airbus and other companies that are considering Mexico as a part of their strategy for global supply chains within the new paradigms of the industry. N

www.promexico.gob.mx

Cover Feature

PROMXICOS PARTICIPATION IN THE AEROSPACE INDUSTRYProMxico is supporting this industry in two strategic areas: developing exports and attracting foreign direct investment.

In order to promote exports, ProMxico organizes Mexican Pavilions every year at the major international trade shows, buyer missions, business encounters, and other events. This year, a Mexican Pavilion will be installed at the International Paris Air Show at the Paris-Le Bourget Airport, with a sig-nificant number of Mexican companies.

ProMxico held a Seminar on issues of foreign investment with FEMIA at the first edition of the Aerospace Fair Mexico 2015, organized recently by the Mexican Air Force (FAM). Moreover, at the initiative of Boeing, a seminar was organized under the First Fo-rum of International Procurement that this aeronautical company held in Mexico.

AEROSPACE FAIR MEXICO 2015From April 22 to 25, the first Aerospace Fair Mexico 2015 was held, organized as a part of the centenary of the founding of the FAM. Two hundred and forty exhibi-tors attended, including ProMxico.

FOREIGN INVESTMENT SEMINARIn addition to its institutional pavilion, ProMxico participated by providing in-formation about its products and services at a Seminar on Foreign Investment for visitors. It also supported a business meet-ing coordinated by BCI Aerospace, with 120 companies taking part, and 300 par-ticipants from 12 countries. About 2,000 B2B meetings were arranged.

The CEO of Airbus in Mexico, the Pres-ident of FEMIA, the Commander of FAM, and the General Director of ProMxico on behalf of the Minister of Economy attended the Foreign Investment Seminar.

Among the issues discussed at the seminar, FEMIA highlighted the aero-space industry, and ProMxico reported on investment support and the develop-ment of aerospace clusters in Mexico. The General Directorate of Civil Aviation (DGAC) shared the theme of BASA. The main axis of the seminar was the con-ference imparted by Airbus on How to integrate into the global supply chain. Honeywell presented a success story, re-garding its contributions to the A350 project at its plant in Mexicali, Baja Cali-fornia. Through its Promotion Commit-tee, FEMIA detailed its support for estab-lishing businesses in Mexico.

Cover Feature

PARTICIPATION AT THE BOEING SUPPLIER SUMMIT

Boeingforeignsuppliers 26 companies

Mexican companies interested inbecoming Boeing suppliers

32 companies

Figures Figures

THe aeROSPace SecTOR iN MexicOa positive development in 2014

aeROSPace iNduSTRy

YEARNUMBER OF

COMPANIES

ACTIVITY

TOTAL EXPORTS

(MILLIONS USD)MANUFACTURES

(%)

MAINTENANCE,

REPAIR AND

OVERHAUL (%)

ENGINEERING &

DESIGN (%)

SUPPORT

ORGANIzATIONS1

(%)

2006 109 77.1 11.9 11.0 n.d. 2,042.19

2007 150 76.7 13.3 10.0 n.d. 2,656.24

2008 160 78.8 11.3 10.0 n.d. 3,082.65

2009 194 79.4 10.8 9.8 n.d. 2,522.44

2010 238 70.1 12.2 17.7 n.d. 3,266.28

2011 249 68.4 13.3 14.8 3.5 4,337.24

2012 266 70.9 10.6 14.2 4.3 5,040.13

2013 270 71.7 10.7 13.4 4.2 5,463.45

2014 300 72.1 10.9 13.2 3.8 6,365.82

2015 300 72.1 10.9 13.2 3.8 467.99*

1 Includes universities and research centers. * through JanuarySource: Ministry of economy, High technology and Heavy Industries General office, Banxico

Year Imports Exports Balance

2014* 454 470 16

2015* 377 468 91

2015/2014 (%) -17.0 -0.4

Source: Ministry of economy, High technology and Heavy Industries General office, with data from the electronic Commerce General office, Banxico.

comparative figures for the same period between 2015/2014(millions of dollars)

It is estimated that by the end of 2015 the sectors exports will exceed 7.3 billion dollars, and imports will reach 6.4 billion.

In January 2015, exports amounted to 467.9 million dollars, while imports reached 376.7 million dollars, for a favorable balance of 91.3 million dollars.

Source: Ministry of economy, High technology and Heavy Industries General office, with data from the electronic Commerce General office, Banxico. *as of January.

imports exports

aeROSPace iNduSTRyTrade balance (billions of dollars)

20142013201220112010 2015*2009200820072006

6.366

5.416

5.463

4.412

5.040

4.287

4.337

3.782

3.266

2.865

2.522

2.1712.4322.2532.042

1.380

3.0832.656

.3767 .4679

0.66% of the Manufacturing GNP was represented by aerospace in 2014; 88% more than in 2007.

+1.7 billion dollars of direct foreign investment have accumulated in the sector in the last 10 years2.

In July 2014 the Advisory Council on Aerospace was formed to integrate and follow up on the sectorial agenda.

320 companies and support organizations in 18 states of the Republic. Between 2006 and 2014 the number tripled from 109 to more than 300.

MexicaN exPORTS

2.7%2.8%7.3%80.6%FranceGermanyCanadaUSA

3.3%3.8%6.4%74.9%

MexicaN iMPORTS

EnglandCanadaFranceUSA

16.5% growth with exports of 6.3 billion dollars, surpassing

the 5.4 billion achieved in 2013

6th supplier of aeronautical parts to the uSa, above Brazil,

Italy, Israel and China.

949.4 million dollars favorable result on the 2014 trade

balance, with an average surplus of 642 million in the last eight years.

22.8% growth in total imports of 5.4 billion dollars, more than the 4.4 billion recorded in 2013.

4th destination of manufacturing investments in the aerospace sector, after China, India and the USA1.

+15% average annual growth rate of exports during 2006-2014.

1 aerospace & defense, 2012 year in review and 2013 forecast, PWC. 2 With information from the Ministry of economy, General Directorate of Foreign Investment, FDI flows branch 3364 SCIaN.

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the success of Famex 2015 as a place for business and educational opportunities has generated high expectations for Famex 2017.

According to the institution that orga-nized this event, the Mexico Aerospace Fair 2015 is a commercial trade show for civil and military aeronautics. The Fair occupied an area of over 112,000 square meters, where large aircraft were exhib-ited, flight demonstrations were held, and articles and services on behalf of the par-ticipating companies were shown.

Two hundred and five aeronautical com-panies, and 35 space companies participat-

ed in the exhibition, for a total of 240 firms. Visitors at the fair had the opportunity to present new technologies, as well as launch products and services that position their brands among national and international government officials, businessmen and se-nior military officers, encouraging business opportunities.

In addition, the fair was also a meeting place to promote training of aeronautical and space personnel, through an agenda of several academic conferences.

EDUCATION MATTERSThe first Mexico Aerospace Fair 2015 was organized to mark the Mexican Air Force Centennial. Civil and military air-craft flights were scheduled to top off the exhibition of aeronautical equipment and the several business meetings that took place on the premises. The event was or-ganized by the Ministry of National De-fense (Sedena), through the Mexican Air Force and the private sector, and took place from April 22 to 25 at the Number 1 Military Air Base in Santa Luca, Estado de Mxico.

General Rodolfo Rodrguez Quezada, President of the Organizing Committee of the Mexico Aerospace Fair 2015, said at the inauguration the Mexican Aviation sector is currently the 14th largest in the world. Last year the Mexican aeronautical industry grew by 18% and exported more than 6.4 billion dollars.

The first Aeronautics Education Fo-rum took place during the event, where youngsters from 19 different universities participated and had the chance to meet with the representatives of the compa-nies that could eventually hire them in the future.

We currently employ 45,000 workers in the aviation industry, but our projec-tions for 2020 indicate that we will require a total of 110,000 workers, General Ro-drguez estimated. The Mexico Aerospace Fair 2015 also hosted educational and commercial exchanges to show part of the technology and development Mexico has had in this field.

A RELEVANT EVENTGeneral Rodrguez said that It is a national priority to promote the aviation industry and the aerospace sector in Mexico, because it has been extremely successful in recent years. This exhibition is definitely the first event made in Mexico to promote and proj-ect the aeronautical sector in this country.

The Aerospace Fair had the purpose of promoting technological exchange, busi-ness meetings, projecting the aerospace industry in Mexico, and encouraging more foreign investment and job creation in com-panies already established in the country.

The participation of 23 national educa-tional institutions with careers related to the aeronautical field, representing nine states of the republic, were present in 17 stands locat-ed in the educational pavilion. This allowed teachers and students to interact for the first time with the representatives of the largest aeronautical companies in the world.

The presentation by Benito Gritzewsky, President of the Mexican Federation of the Aerospace Industry (Femia), was attended by 300 people and celebrated with applause.

BUSINESS, A SUBSTANTIAL CHAPTERRegarding one-on-one B2B encounters, re-ports by BCI Aerospace (France) and Mex-icoNow (Mexico)who were in charge of organizing the business meetings during Famex 2015recorded a count of over 2,000 business appointments. Both firms stated that the B2B rooms remained full at all times for the duration of the fair.

Also, in various stands and chalets many casual business meetings were held between entrepreneurs, suppliers, and representa-tives of different levels of government. An estimated 3,000 such appointments were made. These results confirm that Famex 2015 was the most importan national aero-

nautics event ever, and it conferred Mexico a new status and international projection. It is now recognized as an important Air Exhibition in Latin America, together with the International Air and Space Fair (Fidae) that has been hosted by the Chilean Air Force for the past 30 years. Commander Luis Fuenzalida, representative of the Chil-ean Air Force and Finance Manager for Fidae, announced the signing of an agree-ment with FAMEX, through which both committees offer reciprocal spaces at their respective international fairs, and pointed out that FAMEX has become the most im-portant competitor in America.

Special report Special reportphotos courtesy of presidencia de la repblica

by PROMxICO wITh INFORMATION FROM FAMEx

FaMex 2015an event wheRe Business flies

The Aerospace Fair had the purpose of promoting technological exchange, business meetings, projecting the aerospace industry in Mexico, and encouraging more foreign investment and job creation in companies already established in the country.

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The foreign investment seminar or-ganized by the Famex 2015 Committee included a large attendance of entrepre-neurs, managers and suppliers of the most important companies present in Mexico. The presentation by Daniel Parfait, Presi-dent of the Safran Group Mexico, on for-eign investment in the Mexican aerospace industry, together with Airbus Mxico

Executive Director Frdric Garcias pre-sentation on the development of the value chain in Mexico, highlighted the event.

THE MEXICAN SPACE AGENCYThe participation of the Mexican Space Agency (AEM) was also a success. In ad-dition to the pavilion of 540 square me-ters housing companies in the space sec-tor, the agency included 18 modules in-side the pavilion, plus an auditorium with 60 places for panels and conferences. 35 companies in the space sector, 18 educa-tional institutions, 16 specials guests, 31 panelists, 115 exhibitors, and 53 agency officials participated. The five panels were completely full during the 21 lectures giv-en at the fair.

In the exhibition area, visitors saw four mockup models of Cansats, three mod-els of Cubesats, four satellites and three launching rockets: Ariane, Atlas and Pro-tn. Famex 2015 presented a broad per-spective of the space sector to authorities and members of academia, industry and the Mexican community in general, serv-ing as a platform to publicize the existence and main activities of the recently created AEM.

During the four-day Mexico Aero-space Fair 2015, various training courses, conferences and exhibition flights were performed. The closing day of the exhibi-tion an air show was performed with free admission, and was attended by 100,000 people. The admission fee for the other events at the Mexico Aerospace Fair 2015 was 232 pesos per day. N

Special report

Famex 2015 is now recognized as an important Air Fair in Latin

America, together with Chiles International Air and Space Fair

(Fidae).

aiRBuS GROuPin latin ameRicaWith over 1,400 employees located at 17 sites across seven countries (argentina, Brazil, Chile, Colombia, el Salvador, Mexico and Peru), Latin america is a region where airbus Group continues to expand its presence, generating revenues in 2013 of 5 billion dollars.

Airbus Group is a global lead-er in aeronautics, space and related services. In 2014, the Group comprising Airbus, Airbus Defence and Space and Airbus Helicoptersgenerated revenues of 60.7 billion euros and employed a workforce of around 138,600. Airbus Group is a major partner in the Euro-fighter consortium, a stakehold-er in the missile systems provid-er MBDA and a 50% partner in turboprop aircraft maker ATR.

With over 1,400 employ-ees located at 17 sites across seven countries (Argentina, Brazil, Chile, Colombia, El Salvador, Mexico and Peru), Latin America is a region where Airbus Group contin-ues to expand its presence, generating revenues in 2013 of 5 billion dollars.

Latin America is one of the oldest markets and sourcing partner regions of the Group, with an order backlog of 60

billion dollars and a legacy business that goes back almost 40 years. Agreements with some of the regions leading universities and research cen-ters increasingly make Latin America a partner of choice for Airbus Group.

Using population density as a measure of proportion, Latin America is on a scale with the Asian Pacific region, the strongest growth region for the Group.

HIGHLIGHTS OF AIRBUS GROUPS ACTIVITIES IN LATIN AMERICA

AIRBUSAirbus has become a market leader in Latin America. In the last 10 years, Airbus has tripled its in-service fleet and delivered more than 60% of all aircraft operating in the region. With more than 850 Airbus aircraft sold and an additional backlog of almost 400, over 550 Airbus

Mexicos Partnerphotos courtesy of airbus

by promxico

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Mexicos Partner Mexicos Partner

aircraft are currently in opera-tion throughout Latin America and the Caribbean.

Airbus boosted its pres-ence in Latin America in 1998, when LAN, TACA and TAM placed a joint order for a total of 90 single-aisle air-craft with options for a fur-ther 90. This was the largest contract ever signed in Latin American commercial avia-tion history and prominently placed Airbus on the map in the region. Since then, the three airlines combined have ordered more than 500 A320 Family aircraft.

The reliable and efficient A320 Family is the aircraft of choice in Latin America, where the single-aisle jetliners are flown by carriers such as Aruba Airlines, Avianca, Avi-anca Brasil, Interjet, LATAM Airlines, Sky Airline, TAME, VivaAerobus, VivaColombia, Veca, and Volaris.

Airbus wide body A330 and A340 jetliners are operat-ed in the Latin America and the Caribbean region by airlines that include Aerolneas Argen-tinas, Avianca, Avianca Brasil, Azul Linhas Aereas, Conviasa, LATAM Airlines, Surinam Air-ways and TAME.

The A350 XWB Family is building up a customer base in South America, where TAM will become the first airline in the Americas to fly the A350 XWB with a firm order for 27 of the highly efficient, wide body airliner; LATAM was also the first Latin American cus-tomer to place a firm order for Airbus A320neo. Additionally, Synergy Aerospace Corp, Avi-ancas largest shareholder and owner of Avianca Brasil, has ordered 10 A350 XWBs.

According to the latest Air-bus Global Market Forecast, in the next 20 years Latin Ameri-can airlines will need 2,300

new passenger and freighter aircraft while intra-regional and domestic traffic within Latin America and the Carib-bean is expected to triple by 2033, growing at an impressive rate of 5.6% and becoming the biggest market for Latin Amer-ican carriers.

In Mexico, Airbus has an-nounced in April 2015 an agreement with Aeropuertos y Servicios Auxiliares (ASA) for the development of the first Airbus Training Center in Lat-in America for pilots of A320.

AIRBUS DEFENCE AND SPACEAirbus Defence and Space, through its Military Aircraft business line, has a long-stand-ing presence in Latin America, beginning in the late 1970s and primarily through its Light and Medium aircraft family, includ-ing the C212, the CN235 and the C295, carrying between a three and nine metric ton pay-

load. Some 145 such aircraft have been delivered and are flying with the armed forces of 13 countries throughout the re-gion. These are Argentina, Bo-livia, Brazil, Chile, Colombia, Dominican Republic, Ecuador, Mexico, Panama, Paraguay, Su-rinam, Uruguay, and Venezuela.

Chile, which now operates a fleet of 12 Airbus Defence and Space military transport aircraft, bears a special signifi-cance as it was the first to order from the former CASA (now part of Airbus Defence and Space) back in 1978. However, the biggest Airbus Defence and Space military transport air-craft operator in Latin Ameri-ca is Mexico with 20 aircraft flying today. Colombia is the second largest operator with 19 aircraft, followed by Brazil with 12 aircraft.

Airbus Defence and Space built the Chilean satellite sys-tem, FaSat Charlie (SSOT)

that has now been operating perfectly in orbit for almost 2.5 years and constitutes the most powerful Earth Observa-tion System ever flown in Latin America. Airbus Defence and Space has also been selected as sole prime contractor to de-velop, construct and launch the first Earth observation optical satellite system for Peru.

Airbus Defence and Space is also a worldwide leader in global security solutions and systems, providing Lead Systems Integration and value-added products and services to civil and military customers around the globe: air systems (aircraft and unmanned aerial systems), land, naval and joint systems, in-telligence and surveillance, cyber security, secure communications, test systems, missiles, services and support solutions. It is a leading provider of mission criti-cal communications solutions, having more than 280 custom-

ers for digital radio networks in 84 countries, out of which more than 40 Large-Scale Integrated nationwide networks are in op-eration. These include IRIS in Mexico, a digitally encrypted voice, data and image highway, with frequencies exclusively as-signed to public safety, based on the Tetrapol technology. Fur-thermore, Airbus Defence and Space has implemented Mexico Citys Tetra Police Network, the largest citys TETRA network in Latin America.

AIRBUS HELICOPTERSAirbus Helicopters has been present in Latin American for over 40 years with a network of three customer centers which cover more than 30 countries across the region: Airbus He-licopters Mexico dealing with Mexico, Central America, the Caribbean, Colombia, Ecua-dor and Venezuela; Helibras in Brazil, also serving Para-

guay; and Airbus Helicopters in Chile, covering Chile, Ar-gentina, Peru, Bolivia, Panama and Uruguay. Airbus Helicop-ters employs 1,200 people in the region, a number that has doubled in the past four years.

The Latin American cus-tomer centers are responsible for the sale and customization of new and second-hand heli-copters, commercial support, training, spare parts distribu-tion and maintenance of the Airbus Helicopters fleet, all over the South American con-tinent. Helibras also has a state of the art engineering center, able to design, develop and produce a 100% Brazilian he-licopter by the mid-2020s.

Latin America is a major contribution to the company in the civil and military sector. With over 1,400 helicopters currently in service, Airbus He-licopters accounts for 32% of the regions operating fleet.

Latin America is one stra-tegic market for the next de-cade with expected continuous market growth fueled by both replacement and fleet expan-sion. The military sector in the region holds great potential and Airbus Helicopters has successfully secured some im-portant contracts in the last few years, including the supply of 50 H225M to the Brazilian Armed Forces, 15 H225M to the Mexican Armed Forces, seven AS350/550 to Ecuador, six Super Puma AS332 C1e to Bolivia and recently 10 Pan-ther AS565 MB to the Mexi-can Navy. There are currently some important on-going proj-ects for Airbus Helicopters in the region mainly in Brazil, Argentina, Ecuador, Mexico, Peru, etc.

In the civil sector, there are very good opportunities in the Oil & Gas sector, particularly in Brazil and Mexico, where

AirbusGroupworkforceinLatinAmerica:1,400* Over1,300 airbus helicopters aircraft in service

in the region

AirbusGroupannualrevenuesfromtheregion: c. 5 billion dollars*

Morethan500 airbus passenger aircraft are in service in latin america

Basedin7 nations, with 17 offices spanning from mexico to argentina

LatinAmericawillrequiremorethan2,300 new passenger aircraft in the next 20 years**

* 2013 figures

**2013-2032AirbusGlobalMarketForecast

key FacTSfoR latin ameRica

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growth in oil production from pre-salt reservoirs will require su-per-medium or heavy helicopters transport, and in Mexico, where the energetic reform concerning the privatization of oil rigs could lead to a fleet extension. There will also be major opportunities in public services and commer-cial and private transport, with the H125 and the H145 being very well positioned due to their high performance in hot and high environments.

Customer satisfaction is a priority for the company, which dedicates much effort in enhanc-ing the Support and Services offer in the region. In addition to the extensive network of cus-tomer centers, Airbus Helicop-ters has set up certified mainte-nance centers in some countries such as Guatemala, Panama and Peru. Airbus Helicopters in Mexico offers ab-initio training

for technicians and pilots in col-laboration with the HeliEscuela, located in the state of Veracruz, as well as training of helicopters maintenance technicians, thanks to an agreement signed with Turbomecas Mexican branch. A Full Flight Simulator for the training of H225/H225M pilots will be operating in Rio de Ja-neiro very soon.

A key factor of Airbus Heli-copters success in Latin Amer-ica stems from its early entry into markets, and launching in-dustrial co-operation programs that have greatly contributed to the development of the local aviation industry. Brazil, with the setting up of a H125 Es-quilo Final Assembly Line very early at the creation of Heli-bras and reinforcing this indus-trial set-up with a H225M Fi-nal Assembly line in 2009, and Mexico, with the creation of a

new manufacturing facility of aeronautical components, are good examples of the Airbus Helicopters active role in in-dustrial cooperation and trans-fer of technology in the region.

In Mexico, Airbus Helicop-ters has inaugurated on Febru-ary 2013 its plant in Queretaro to manufacture in single source emergency doors for the air-craft A320.

ATRATR is the worlds largest manu-facturer of commercial turbo-prop aircraft. A joint partnership between the Airbus Group and Alenia Aermacchi/Finmeccanica, ATR has sold nearly 1,500 air-craft and has over 180 operators in more than 90 countries. ATR has a long-term presence in Bra-zil for many years.

The new ATR-600s are the preferred aircraft for the devel-

opment of new regional net-works in fast-growing econo-mies like Brazil. Latin America accounts for more than 170 ATR aircraft in service and a backlog of more than 50 planes, which represent half of the total ATR backlog. Among 13 ATR customers are the carriers like Azul Linhas Areas, AVIANCA, Passaredo Linhas Areas, MAP Linhas Areas or else LIAT. Azul, with over 60 ATRs in its fleet, is the largest ATR opera-tor in Latin America.

Offering its operators an outstanding airfield perfor-mance on short, narrow or unpaved and rough runways, ATR airplanes have low op-erating costs and efficiency. Every 15 seconds, an ATR tur-boprop takes off somewhere around the world. N

www.airbus.com

Mexicos Partner

SaFRaNtRust and investment in mexico

Safran currently has ten facilities in Mexico, in states like Chihuahua, estado de Mxico and Quertaro. this year the French company expects to start operations on two new plants and increase its production capacity in the older ones.

Safran, the French group Tier 1 supplier to the aerospace and defense industries, has had a very good relationship with Mexico in the past two decades. In 1990 its subsidiary, Labinalmanufacturer of har-nesses and electrical compo-nentsdecided to open shop in the northern state of Chi-huahua. Since then, the French group has not stopped believ-ing in Mexico by investing and growing.

Mexico has all the po-tential to be one of the most important players in the glob-al aerospace industry, says Daniel Parfait, President of Safran Mxico. The division in this country ranks third for the global corporation, just behind France and the USA. Safran currently has 10 facili-ties in Mexico. This year the French company expects to start operations in two new plants and increase its pro-

duction capacity in the exist-ing ones.

These have been years of uninterrupted commitments in state-of-the-art technology, job creation and constant train-ing. Safran believes unfailingly in the future of the aerospace industry in Mexico, says Par-fait. Safran Mxico is the larg-est employer in the countrys aerospace industry, with an estimated 5,000 workers in the installations it has here.

Mexicos Partner

INTERVIEw wITh dANIEl PARFAIT, PRESIdENT, SAFRAN MxICO, by PROMxICO

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THREE BIG OPERATIONSThe groups operations in Mexico are of three types. First, compa-nies like Messier Bugatti-Dowty (that manufactures landing gear), Labinal (that produces harness-es and electrical components), and Snecma (that manufactures large-scale turbines with the lat-est technology). These companies export quality products made in Mexico to markets like the USA, with customers like Boeing, and Europe, with Airbus.

Second, the group also works in the MRO field with

maintenance of landing gears and CFM56 engines, with guaranteed standards by its af-filiates Messier-Bugatti-Dowty and Snecma America Engine Services (Sames) in the state of Quertaro.

Third, the group also serves the domestic market through companies like Tur-bomeca (helicopter turbines) and Morpho (identification and detection systems) with projects in both the public and private sectors.

Turbomeca, for example, provides maintenance to pri-vate and public helicopter fleets, including the President of Mexicos fleet. Meanwhile, Morpho is responsible for the National Electoral Institutes (INE) database, and works on civil and public security projects. Safran is commit-ted to Mexico and the group is determined to continue in-vesting in the country, says Parfait.

INNOVATION, A CONSTANT ENGINESafran has reason to believe that the groups growth in Mexico will continue in the coming years. The reason is the new arrival of the LEAP engineheir of the legend-ary CFM56 engine, whose unique characteristic is that every two seconds an airplane in the world takes off using these engines, a product of a joint-venture with General Electric. Airline assemblers have already signed firm or-ders for 8,500 of these new engines, confirming the future growth of the company and the industry.

Safran is already working on orders for the coming years. Says Parfait: This work is cen-tered around innovation, the main foundation of the groups strategy.

In terms of innovation, Safran daily explores new high-tech projects such as the

electric movement of planes on the ground, the manufacture of composite materials, the cre-ation of a Mexican industry of long-range drones, or par-ticipating in security programs for the countrys airports. And for this it has worked hand in hand with institutions like the National Council of Science and Technology (Conacyt), or the National Polytechnic In-stitutes (IPN) Center for Re-search and Advanced Studies (Cinvestav).

Furthermore, the group is committed to the development of strong local supply chains, an element critical for Safran. Given the rapid growth of the aerospace sector in Mexico, a proper organization of the means of production naturally prevails. In this sense, Safran welcomes the willingness of ProMxico to progress in this very essential matter, says the President of the French group in Mexico.

A HISTORY wITH A FUTUREGrupo Safrans history with Mexico has not only been in the areas of development and production. The group cur-rently presides over the Aero-cluster of Quertaro (ACQ), an association created to promote research and collaboration with educational initiatives. The group has positioned itself globally as one of the major aerospace players in the world through a strategy of vigor-ous innovation and systematic search for leadership in each of its activities. It should be noted that Safran destines 13% of this turnover to research and development of new technolo-gies, an exceptionally high per-centage in the industry.

Currently, Safran has 69,000 employees in over 50 countries. In Mexico the story is no different. Through ACQ, Safran has encouraged the development of the National Center for Composite Materi-

als and Aerospace Technolo-gies in Quertaro.

The common history of Mexico and Safran is more than two decades old, but there is still a long way to go on both sides. They have been two decades of uninterrupted commitments in technology, job creation and constant training. Safran be-lieves unfailingly in the future of the aerospace industry in Mexico, and continues to advo-cate for more innovation, more design, and more investment in this country, concludes Daniel Parfait. N

www.safran-group.com

Safran has 69,000 employees in over 50 countries. In Mexico the story is not different. Through ACQ, Safran has encouraged the development of the National Center for Composite Materials and Aerospace Technologies in Quertaro.

In terms of innovation, Safran daily explores new high-tech projects such as the electric

movement of planes on the ground, the manufacture of composite materials, the

creation of a Mexican industry of long-range drones, or participating in security programs

for the countrys airports.

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delTaPlaST MxicOacceleRatinG aeRosPace develoPment in mexico

the company received the aS9100 certification and will open a plastics manufacturing plant to ensure development within the aerospace industry.

Deltaplast Mxico is a subsid-iary of the French Plastibell Group, specialized in the man-ufacture of high-tech plastic parts for the aerospace, medi-cal, automotive and electri-cal industries. This year, the group was acquired by PSB In-dustries Group, which carries brands like Texen and CGL Pack, positioning it as a major player in the areas it serves, as well as complementing those brands, says Gerard Didienne,

General Director of Deltaplast Mxico.

PSB Industries Group has production facilities in France, the USA, Japan, Poland and Mexico. Last year it reported revenues of 262 million euros, of which 60% came from in-ternational sales.

DELTAPLAST MXICO CAPABILITIESDidienne acknowledges that sales have doubled in the past

two years, allowing him to ex-pect a similar trend in the next couple of years. The compa-nys goal is to accelerate the de-velopment of the aerospace and medical sectors in Mexico, he states.

Based in Torren, Coahui-la, in northwest Mexico, the company employs 134 people. For the past two years it has manufactured high-tech plastic parts for the aerospace indus-try and, in the coming years, it

foresees a strong growth based on current contract proposals.

To enter this industry, Deltaplast Mxico applied to comply with the international norms that govern aerospace, and it received the AS9100 certification to ensure develop-ment in the sector. It also struc-tured a specialized team of Mexican and French engineers who take care of the needs of their customers and explore how the company can satisfy them with ad hoc solutions. This team has the support of the parent company in France to get production going and ensure the continuity of the processes involved.

As part of its strategyexplains DidienneDeltaplast Mxico is considering the cre-ation of a new plant specialized in the aerospace segment. Its aim is to increase production capac-ity, improve competitiveness and optimize the performance of the supply chain, as a turning point for the company and its current and potential customers.

In order to face the chal-lenges ahead, the French com-pany established a partnership with its customers, with whom it maintains a close relation-ship exploring future plans, identifying needs and antici-pating solutions.

INNOVATION, THE MOTORFor Didienne, Deltaplasts con-tinued investments in the aero-space and medical sectors were outstanding in 2014 and 2015, and they will increase even more by 2016.

The company spends 8% of the value of its sales on the development of technical and marketing capabilities and in-novation, particularly in the design of high-tech products and the use of plastic materi-als with high performance fea-tures, such as high tempera-

ture resistance, better mechan-ical conditions and chemical properties.

Of course, investment in innovation is not by itself a guarantee of profitability. That is why part of the companys resources are aimed at auto-mating its assembly lines and processes, as well as state-of-the-art injection equipment.

Even though it is consid-ered a Tier 2 company, Delta-plast Mxico maintains its goal of becoming a Tier 1 organiza-tion for certain clients it can partner with for the long haul. Human talent is also an essen-tial component for this orga-nization. Consequently, it pro-vides internal training, which it considers a key to success for achieving growth and generat-ing efficiencies.

ADVANTAGES OF MEXICOGerard Didienne argues that from the perspective of a com-pany with foreign ownership, Deltaplast Mxico has noticed that the country needs special-ized engineers in the aerospace and medical sectors, as well as industrial engineers with a solid preparation to meet production requirements.

Among the advantages of settling in Mexico, Deltaplast emphasizes our proximity with the USA, and the signifi-cant added value that plastic parts manufactured in Mexico provide. In addition to that, competitive costs, including la-borwidely recognized for its qualitymust be factored in.

In the particular case of the aerospace sector, Mexico offers attractive import-export pro-cesses, although Didienne con-siders that the simplification of these processes still represents an area of opportunity for the country. N

www.deltaplast.mx

Mexicos Partner Mexicos Partnerphotos courtesy of deltaplast

INTERVIEw wITh GERARd dIdIENNE, GENERAl dIRECTOR, dElTAPlAST MxICO, by ROdRIGO CANSINO

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SiaSa aiRexPeRtise as a Business oPPoRtunity

More than certifications, the development of human capital is a matter of utmost importance. It allows the acquisition of skills to manufacture, maintain or repair components. then come the certifications.

With over thirty years experi-ence in the aviation industry, Felipe Briones Soto and two partnersall of them aeronau-tical engineersrealized one day that airlines operating in Mexico had worn seats that were in very poor condition. Therefore, they decided to ven-ture into the industry with a business idea that had no com-petition in the domestic market.

In the years I worked as a manager for American Airlines and Continental Airlines, I ob-served the bad shape aircraft seats were in. I later verified

that Aeromxico was also in the same poor condition, as well as many other airlines. So we decided to create a compa-ny focused primarily on meet-ing the challenges airlines were facing in terms of interior re-design of their aircrafts, says the CEO of SIASA Air. The company began operations in 2006, and its first project was the delivery of a complete set of seats for the Aeromxico Connect Embraer 190 fleet.

Specializing in aircraft in-teriors, redesign and manufac-ture of leather seats certified by

the Federal Aviation Adminis-tration (FAA), the company is based in Len, Guanajuato, the center of Mexicos leather in-dustry. We developed a busi-ness model that could recon-vert from the shoe and leath-erwork industry to the aviation business, says Briones. The company started by exclusively manufacturing aircraft seats, but it has slowly grown and diversified so that today its ser-vices cover the entire interior of the aircraft. We gradually increased our capabilities until we received our certification

as a nautical designer for air-craft interiors. In fact, we are the only company operating in Mexico in this segment.

MINIMUM COMPETITIONIn Mexico SIASAs competition is minimum and limited mainly to the executive aviation sector. The companys fiercest compe-tition is located abroad, and it is very strong because it has been in the market for more than thirty years. Our com-petition is at the global level. Our company, created nine years ago, is relatively new to

the market, but weve been able to compete thanks to our patents, innovation, and certi-fied supply chain, developed in Guanajuato. Briones stresses one of the companys major strengths: an integrated Mexi-can business modelfrom procurement, certification and developmentfor commercial, executive or military aircrafts.

SIASA works for airlines such as Aeromxico, Interjet and Volaris. In Latin America it works for Viva Colombia, and has developed proyects with Avianca-Taca, Aeroman (El Salvador) and Coopesa (Cos-ta Rica), and they have three certifications. One covers the production of seat covers and cushions in leather or fabric. The other two relate to main-tenance: one focuses on repair and manufacture of aircraft in-teriors, while the other centers on complete service and major maintenance for seats and all their components, plastic, metal and casings. The CEO empha-

sizes that the most important aspect in the aviation sector is the issue of security. Therefore, all products, components or services that are part of an air-craft must have a certificate of legality and airworthiness. To provide service, certifications are the main prerequisite for a company in this segment.

CERTIFIED HUMAN CAPITALAnother important issuethat makes a difference in a company like SIASAis the development of human capi-tal that must possess the skills and personal certifications to manufacture, maintain or repair a component. Accord-ingly, Briones and his partners are not only founding mem-bers of the Mexican Council for Aerospace Education, but also the founders of the Aero-nautical College of the Bajo, the only non-governmental aeronautical school, where students graduate trained in aircraft, engines and avionics.

While the creation of this school was due to the demand for technical training of per-sonnel for the company, this institution has become a plat-form for preparing technicians and engineers from the Nation-al Polytechnic Institute (IPN), the Aeronautical University in Quertaro, the University of Len or the Aeronautical Uni-versity in Pachuca.

SIASA is currently expand-ing. The CEO mentioned the creation of business units in Brazil, the USA, Colombia and Costa Rica. Our biggest chal-lenge is to achieve the expo-nential and global growth we have devised.

THE PROMXICO EXPERIENCEThe approach with ProMxico

occurred during a trip to Chi-cago, where Briones and his associates made a proposal to United Airlines. From that moment on, ProMxico has helped guide and counsel the company in terms of entrepre-neurship, by conducting mar-ket research and helping SIASA arrange meetings with airline companies in other countries, helping the company diversify its business.

We were so focused on certifications and the growth of our company, that we hadnt realized that there are organizations such as Pro-Mxico that can help us proj-ect our business abroad, con-cludes Briones. N

www.siasaair.com.mx

Mexicos Partner Mexicos Partnerphotos courtesy of siasa air

SIASAs fiercest competition is located abroad, and it is very strong because it has been in the market for more than thirty years.

INTERVIEw wITh FElIPE bRIONES SOTO, CEO, SIASA AIR, by RAqUEl RIVAS

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aiSGthe imPoRtance of ceRtification

over sixty airlines are aISG customers. their biggest challenge is to meet the certifications and requirements of the aeronautical authorities, especially in europe.

In Mexico we have many skilled and professional people. Thanks to the aerospace history of companies like Mexicana de Aviacin, Aeromxico and, more recently, Volaris and In-terjet, the sector is developing experienced workers. Person-nel are very capable and cover

certification requirements, says Juan Antonio Teodoro Mndez, Vice President of Aviation Inte-grated Services Group (AISG), a company specializing in Line Maintenance of commercial airlines and cargo.

AISG emerged from the al-liance of two companies: A&P

Mechanics International Ser-vices and AIS. Both offered simi-lar services and worked for the same airports. Hence, to provide a complete service, they decided to merge.

MORE THAN NINE CERTIFICATIONSAISG basically offers three services: LineMaintenance Consulting Training

Their Line Maintenance ser-vice is the most profitable. Air-lines are required by aeronauti-cal authorities in their respective countries to regularly inspect

their aircraft prior to next flight. It is better to hire a company in the country where they arrive in-stead of carrying a mechanic on board, explains Mr. Teodoro.

One advantage of AISG is that it is present in 22 air-ports and has the most impor-tant aeronautical certifications: EASA (Europe), FAA (USA), and DGAC (Mexico), and also from Chile, South Korea, and Qatar, to mention a few others.

Obtaining these certifica-tions involves many hours of study and disbursement of funds. A basic certification involves from 120 to 160 hours per me-

chanic. In the case of EASA, the company must invest more than a thousand euros per person.

In the other two areas, AISG offers fleet plans, major mainte-nance representation, aircraft and records inspection, fuel and ground operations audits, leas-ing and sales support, as well as the development of mainte-nance manuals and procedures. As for training, the company specializes in Airbus A320 and Boeing 737NG.

More than sixty airlines are AISG customers and, ac-cording to Mr. Teodoro, the most important challenge is to comply with certifications and requirements of aerospace au-thorities, especially in Europe.

THE SPECIALTYUnlike other companieslike some in the automotive sector, that conduct business in the electrical appliance or aviation industries, AISG only concen-

trates on aviation. We special-ize in the aerospace industry, and although we are not closed to doing business in other areas, for now we only cover aerospace, says Mr. Teodoro. Competition in Mexico does exist, but it is not representative. Each airline has its own technicians, but they arent our competition.

In more than 20 offices throughout Mexico, AISG em-ploys more than 150 employ-ees, of whom 120 are certified technicians; mainly DGAC and FAA, while 20% of the techni-cians are EASA certified. There are also two female mechanic-technicians.

AISGs headquarters are located in Cancn, Quintana Roo, where they operate with a staff of 24. In Huatulco, with less operations, they only have two employees. AISG locates its staff throughout the coun-try according to the volume of business at each airport.

In terms of growth, the company has shown healthy 20% increments each year since 2005. Our certifications and requirements by the aeronau-tical authorities make airlines seek suppliers that can give them the necessary support in maintenance matters. Without doubt, they can care for them-selves, but its convenient for them to hire services like ours, which is always more afford-able than bringing a mechanic on board.

EXPANDING OUTSIDE MEXICOOne of the advantages of pro-ducing, manufacturing and do-ing business in Mexico is the quality of the workforce and its low cost. In the field of aircraft maintenance, labor in Mexico is also cheaper than in Europe and the USA, which allows us to offer better prices.

AISG has welcomed the road of expansion. We are

open to internationalization. All of our customers are im-portant, says Mr. Teodoro.

The company has partner-ships with the Technological University of Quertaro and the National Aeronautical University in Quertaro so that students have the option to carry out their professional practices at AISGs facilities.

With ProMxico, AISG participated in a trade mis-sion to investigate the possi-bility of starting businesses in the Dominican Republic. The company discovered opportu-nities that it might explore in the future.

Mexico has trained person-nel and government facilities for doing business and investing. Thanks to this, our country is very attractive for this sector, concludes the Vice President of AISG. N

www.aisg.com.mx

Mexicos Partner Mexicos Partnerphotos courtesy of aisg

INTERVIEw wITh jUAN ANTONIO TEOdORO MNdEz, VICE PRESIdENT OF AVIATION INTEGRATEd SERVICES GROUP, by lUIS FERNANdO TECA

Monterrey

Hermosillo

Loreto

La Paz

Los Cabos

Culiacn

Mazatln

Guanajuato

GuadalajaraPuerto Vallarta

Manzanillo

Quertaro

Cd. de Mxico

PueblaIxtapa zihuatanejo

Acapulco

Huatulco

Oaxaca

Veracruz

MridaCancn

Cozumel

In terms of growth, the company has shown healthy 20% increments each year since 2005. Our certifications and requirements by the aeronautical authorities make airlines seek suppliers that can give them the necessary support in maintenance matters.

NeTwORk

22 locations

on-call service

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a&P SOluTiONShow to diveRsify the maRket

From the union of two companiesPlsticos automotrices de Sahagn and aksys de Mxicoa&P Solutions was founded in 2012 to serve the automotive market. Now the company has three productive plants and employs 800 workers and is leading the plastic manufacturing in Mexico.

A&P Solutions has three plants in Mexico (two in Puebla and one in Ciudad Sahagn, Hi-dalgo, in central Mexico) that manufacture plastic parts for interiors, doors, coatings and pillars, as well as parts for pow-er train, engine covers, battery consoles, radiator frames and other structural components. They have the capacity to man-ufacture larger and more com-plex parts, such as hoods, for example.

The company also services the agricultural sector, by man-ufacturing tractor hoods and fenders. In their three plants, A&P can manufacture practi-cally any auto part, from the smallest five gram parts, to

components that weigh up to 21 kilograms.

Last year the directors of A&P Solutions decided to di-versify their markets. They in-quired about the aeronautical industry and prepared to make an incursion into this sector. Were still working at it; were in the early stages. Weve al-ready met with experts in the norms, and were scheduling courses to address the imple-mentation, explains Mnica Rivera Crdenas, leader of Aerospace Project and Market-ing Manager at A&P Solutions.

THIRTY YEARS OF EXPERIENCE The aerospace industry in Mexico has spiked in recent

years, and the companys part-ners dont want to miss the opportunity to diversify their markets. A&P Solutions will not abandon the auto parts business, but it will open up to aerospace, taking advantage of their experience working with plastics. Our plants add up to 30 years experience in plastics, so thats why weve decided to look at new markets.

The closest aerospace clus-ter from their plants in Puebla is in Quertaro, 1.5 hours away. Since were still in the planning phase, we would con-sider the option of installing a plant closer to a cluster, such as Quertaro or even further north, says Rivera.

Mexicos Partner photos archive

This year, the company believes it will receive the AS9100. A dozen employees were designated to the training and certification process.

INTERVIEw wITh MNICA RIVERA CRdENAS, lEAdER OF AEROSPACE PROjECT ANd MARkETING MANAGER, A&P SOlUTIONS, by lUIS FERNANdO TECA

Mexicos Partner

Executives at A&P Solu-tions have been working hard during 2015. They have in-vested a lot of time in defining what sort of plastic parts they can supply the aerospace in-dustry why, because it is very diverse. But they seem to be focusing on the interior cabin, including seat structures and parts, coatings, control con-soles and the overhead parts where passengers control the air conditioning and reading lights.

TO CERTIFY IS THE CHALLENGEThe main challenge in the aeronautical sector is certifi-cation. Weve had the chance to visit several exhibitions. Potential customers are very serious about certification. The first thing they ask you before knowing your name and what you do, is if youre certified. Its definitely the hardest part of the business, says Rivera.

A&P Solutions is currently certified on ISO/TS:16049 and

14001. They are used to work-ing under processes, keeping track of them and following guidelines. Were not so far from the aerospace industry. But we still have to fill some gaps in terms of traceability, which is very important in this sector, she adds. But one step at a time: after obtaining AS9100 certi-fication, A&P Solutions will look for comply with the regu-lations of the Mexican General Direction of Civil Aeronautics (DGAC).

This year, the company be-lieves it will receive the AS9100. A dozen employees were desig-nated to the training and certi-fication process. We have a lot of talented people in the com-pany willing to work very hard to obtain the certification as soon as possible.

THE MUSCLE OF INNOVATIONThe rule at A&P Solutions is to devote 1% of their revenues to innovation and development. In fact, the company has a research

center in Ciudad Sahagn that serves all three plants.

The muscle of innovation has produced dividends. In the automotive sector, sales have been growing steadily 5% each year for the past three years. These earnings are supported by a well-prepared team. In the area of human resources, the company has a program linked to universities to attract talent.

A&P Solutions projects a significant growth in the next years due to the opening of Audi and other two luxury car OEMs in Mexico.

They also have plans to start new business in the aero-space market, and by 2017 they expect to have at least one production line devoted to the aerospace industry.

Although automotive cycles are shorter, the company believes this industry will continue to represent between 75 to 80% of their portfolio by 2020. N

www.apsolutions.com.mx

A&P Solutions wants to focus on interior aircraft

cabins, including seat structures and parts,

coatings, control consoles and the overhead parts

where passengers control the air conditioning and

reading lights.

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PeaSa auTOPaRTeSthe aviation sectoR, the BiGGest challenGe In parallel were working to enter other automotive and aerospace markets to initiate our diversification, expand our knowledge and create the necessary links with academic institutions and government.

Specialized in manufactur-ing automotive parts, Peasa Autopartes is a company that started its journey in the field of pipe production in 1961. De-rived from the positive results of this activity, the company saw the arrival of new opportunities and included a special process to manufacture conduit tube, a tube through which electrical cables run for construction or electrical installations. After its success in this field, Peasa Au-topartes took the lead late in the 1980s and entered the automo-tive sector by manufacturing en-gine exhaust pipes.

This was a quantum leap for the company, achieving one of its biggest hits when it signed an agreement with Nissan. Pea-sa Autopartes was contracted by the Japanese automaker to manufacture its entire exhaust system. By the year 2000 the Mexican company integrated its stamping press processes to the manufacture of components and parts of exhaust systems. That same year it integrated all press processes and resistance welding processes.

Now, the company is turn-ing its eyes to the aeronautical sector.

Since we have integrated processes for fabricated metal parts, a range of possibilities opened for us in both the au-tomotive and aerospace indus-tries, says Ricardo Navarrete, New Business Manager at Pea-sa Autopartes.

He states that the services the company can offer within the aeronautical sector are var-ied: They need someone who can build and provide support and maintenance of structural parts such as carts, handles, systems similar to rails or even piping for conducting fluids. The aviation sector represents

Mexicos Partner photos courtesy of peasa

INTERVIEw wITh RICARdO NAVARRETE, NEw bUSINESS MANAGER, PEASA AUTOPARTES, by RAqUEl RIVAS

Mexicos Partner

for us primarily a challenge that results in a substantial im-provement in our knowledge of processes, as well as in training and increasing our staff. What were looking for is a general improvement of the company.

CERTIFICATION FOR PRODUC-TIONThanks to a strategic project promoted by ProMxico, the Mexico-EU Program for Com-petitiveness and Innovation (PROCEI), and the Mexican Federation of the Aerospace Industry (Femia), the com-pany obtained the AS9100C certification that allows it to manufacture for the aerospace industry.

Navarrete recalls that, in order to receive that certifica-tion, they went through a series of training programs with ex-perts in the field; at the same time they revised all their man-ufacturing processes through a new quality system. Later, the aerospace experts audited our processes meticulously in order to verify our systems. Fortu-nately, these experts certified just Peasa Autopartes met the requirements of the aerospace industry, recalls Navarrete.

Thanks to the AS9100C certification, Peasa Autopartes will participate in the Paris Air Show 2015, the most important aeronautical exhibition in the world. Since we have just been certified to supply the aerospace industry, and this is an initial requirement to do business in this sector, were really going to Paris just to get to know the market and the environment, establish contacts and strength-en ties with potential custom-ers. We know that its not easy to make deals in the aerospace industry, that it takes time, but were hoping that with our pro-

cesses and manufacturing expe-rience well be able to negotiate a contract in the shortest time possible.

The Paris Air Show 2015 will feature over 2,000 ex-hibitors from 48 countries, be-tween large contractors, equip-ment and component manu-facturers, SMEs focused on manufacturing and assembling aircrafts, engine manufacturers and mechanical and metallur-gical subcontractors, as well as surface treatment and compos-ite materials specialists.

THE FUTURE OF THE COMPANYThe company is a Tier 1 and Tier 2 company, with 350 em-ployees working at Peasa Au-topartes, which is the manu-facturing arm that handles the supply to both the automotive and aerospace industries. The company has many factories located in the Vallejo area in northern Mexico City, and a new plant in San Luis Potos.

Navarrete told ProMxico that this year they open a new plant in San Luis Potos to meet

the demand of Peasa Autopar-tes. Well also expand opera-tions in San Luis Potos. Weve been growing at levels of 30% in recent months. We are in a very demanding time; every-thing is happening very fast. We will get through with businesses we already have, but in paral-lel were working to enter other automotive and aerospace mar-kets to initiate our diversifica-tion, expand our knowledge and create the necessary links with academic institutions and government.

The company has developed in-house equipment and special processes, ranging from stamp-ing and die-cutting to welding-assembly processes, rolling tubes with TIG welding, pipe bending, etcetera.

We also have assembly pro-cesses like mufflers or silencers, and components to assemble complete exhaust systems. We also sell directly to customers as part of a complete assembly op-eration, says Navarrete. N

www.peasa.com.mx

Peasa will open a new plant in San Luis Potos in 2015 to meet the demand of Peasa Autopartes. Well also expand operations in San Luis Potos. Weve been growing at levels of 30% in recent months.

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Industrial clusters carry the triple propeller model in their DNa: working together with schools, government and private industry.

Development in Mexico of the aerospace industry owes much of its momentum to a network of regional clusters. These part-nerships often work in the same confined spacesuch as an industrial park, and sometimes in scattered sites within the same states, where they offer companies support and attract foreign investment. Moreover, they streamline the business through coop-eration and quality assurance, while train-ing and developing human talent through educational institutions.

With the North American Free Trade Agreement (NAFTA), exports to the USA have increased, and USA companies have found in Mexico an ever more reliable partner in the supply chain, from compo-nents to maintenance, repair and opera-tions (MRO).

Among the clusters in the Mexican aeronautical sector, several stand out: Baja California (with 80 companies), Sonora

(with 64), Chihuahua (30), Nuevo Len (23), Quertaro (34), Tamaulipas (11) and the Federal District (11). In total, clusters affiliate and shelter more than 300 compa-nies that have facilities in several regions that produce components for all types of manufacturers.

Thus, hundreds of aerospace compa-nies operate in 18 states in Mexico, gen-erating exports amounting to more than 6 billion dollars annually. In 2006, only 109 companies were registered in this sec-tor in Mexico, but by 2014 the figure had increased to over 300.

In this accelerated growth phase of the aerospace industry, it is essential to include and develop Small and Medium-sized En-terprises (SMEs) thatwith few technical resources and human talentare striving to become suppliers of large companies.

But for SMEswhich represent 85% of the businesses in Mexicoto join the

production chain, a number of challenges need to be resolved.

1. Increase the production capacity.2. In a context of strong competition and

asymmetries, deploy collaboration of SMEs with leading companies and, in turn, the latter with unions.

3. Develop regional institutions that can disseminate innovations and provide frames of reference and new capabilities.

Skilled labor is relevant, so training is a vital endeavor. Consequently, the de-velopment of local suppliers (to reduce imports) and the attention of Tier 1 and Tier 2 Original Equipment Manufacturers (OEMs) have a positive ripple effect: they create jobs that strengthen the develop-ment of talent and innovation.

Many schools are forming engineers and technicians who are hoping and de-siring to work in this sector. The triple propeller model (schools, government and private enterprises), which is in the aero-space cluster DNA, is conducive to work-ing together.

THE BAJA CALIFORNIA AERO-SPACE CLUSTERBaja California has been in the aerospace industry for almost 50 years, although in the beginning it did not have a comprehen-sive support system. The start of the cluster goes back to 2003. Thirteen years ago the first steps were taken to form a body that could identify these companies, what they manufactured and where were located.

Toms Sibaja, Executive President of the Baja California Aerospace Cluster, ex-plains that this conglomerate services five different specialties: aeronautics, space, defense, UV (drones) and MROs.

The cluster is primarily made up of companies that manufacture parts and components within the aeronautical value chain, mainly serving the commercial avia-tion industry. The defense segment consists of companies regulated by the Interna-tional Trade on Arms Regulation (ITAR), which operate in Mexico through a Manu-facturers License Agreement (MLA). Their sole customer is the USA Department of Defense.

In the space segment, efforts are coor-dinated with the Mexican Space Agency to link industry with space projects, in ad-dition to encouraging the development of skills and knowledge on the subject among children and