Eduardo Solis
General Manager
Notheast Mexico, Co-Production International
View from the Top

Mexico’s Northeast: Attractive Region for Aerospace Sector

By Sofía Hanna | Mon, 07/11/2022 - 11:54

Q: What do companies need to keep in mind when moving to Mexico and how can Co-Production International help them?

A: Co-Production International (CPI), a 44-year-old company based in San Diego, California, operates as a boutique Shelter mainly in Baja California but expanding to Northeast Mexico, based in Monterrey. We work closely with our clients to ensure their investment in Mexico is fruitful and that they thrive in the country. Our shelter program offers foreign companies interested in Mexico the legal entities and certainties they need to operate in the country, including the IMMEX export certification, human resources management and administrative services for imports, exports, finances and accounting, among others. These services allow foreign companies to focus on their production process and enjoy the benefit of the IMMEX program from day one. They bring their know-how, raw materials and equipment, and we provide the legal framework, services and people.


We have helped over 300 companies to start operations in Mexico. Some companies have been with us for over 20 years but we also help them become independent entities if they choose that route.


Q: What characteristics are making Mexico an attractive destination for foreign companies?

A: The IMMEX program provides Mexico with a competitive advantage because it allows companies to land their facilities anywhere in the country and grants import and export benefits that increase competitiveness. About 7,000 companies are benefiting from the IMMEX program. This is an enormous industrial community that foreign companies can leverage. However, the approval period to enter the IMMEX program is extended, so  Shelter companies like us are becoming more attractive because we already have this certification. 


Mexico’s outstanding human capital also makes the country attractive to foreign corporations. Many multinational organizations claim that Mexico has its best operations because of the human capital value it provides and the way the country embraces technology and new work standards.


Q: What are the biggest challenges companies face when trying to expand their operations and how does CPI support them in this process?

A: Companies can be placed in a precarious position if they do not abide by a country’s legal and accounting requirements. We understand all the regulations companies must comply with in Mexico and we minimize the risks foreign businesses might face. We offer companies a proven safe soft-landing and we ensure that they comply with Mexican regulations, while enjoying the benefits of the IMMEX/Maquila program


Q: CPI operates across Mexico. How do you match the location with a company’s operating sector?

A: Most of our operations are located in Baja California but we are also present in the Yucatan Peninsula and we are expanding to the northeast of the country. Each region presents a different ecosystem that suits different companies. We analyze each client’s business to select the ecosystem that best fits their needs, logistics, talent requirements, and supply chains. 


Heavy industries, for example, tend to fit in the corridor that goes from Torreon, Coahuila, to Monterrey, Nuevo Leon, which is attractive because of the high tech and R&D that it offers. For example,  automotive systems manufacturer ZF Group is opening a new manufacturing, corporate office, and design center in Monterrey. Nuevo Leon offers productivity, , talent and higher technological capabilities.


Q: What opportunities does Mexico offer to those who want to expand their businesses?

A: There are great opportunities in regionalization to integrate more resilient supply chains within a specific region. This opportunity is driven by the global trade approach taken by some countries even before the COVID-19 pandemic. Moreover, the evolution of free trade agreements is increasing regional content requirements, as is the case with the USMCA and the automotive industry. This forces companies to build stronger supply chains within the region and generates opportunities for local companies to enter those supply chains. A presence in Mexico gives foreign companies access to different markets. At least 70 percent of CPI’s clients have expanded their operations from their original scope in Mexico.


Q: How can CPI contribute to the emerging manufacturing trends alongside its customers?

A: We want to contribute to the enrichment of the ecosystems that we operate in but we also want to promote investment in technologies that address Mexican needs. By further integrating the ecosystem, we will gain more technology and investment. We want to welcome companies from any industry, but we also want to attract the key elements of the supply chain that will transform ecosystems in Mexico, as we did in Baja California supporting the investment of BAP Aerospace. We have supported companies in highly regulated industries such as Aerospace & Defense and Medical Devices.


Q: How does CPI plan to continue promoting the expansion of the aerospace industry?

A: We are expanding to the northeast of Mexico, based in Monterrey because we have an important portfolio of clients interested in the region. We are also actively participating in different events such as the California-Mexico Aerospace Business Summit in Los Angeles and other forums to attract foreign direct investment to make the ecosystem more attractive for aerospace and defense companies of higher complexity. We want to contribute to this part of the country and accelerate the integration of regional content.


We are not only focusing on aerospace. In Baja California, we just opened a plant for Siemens Healthineers’ subsidiary Varian, which manufactures high-tech medical devices for cancer radiology equipment. We have the experience and knowledge to support highly-regulated industry players.


Co-Production International (CPI) facilitates the expansion of manufacturing operations of foreign companies in Mexico, with the IMMEX program benefits. It manages the complete set-up of operations and manages day-to-day administrative duties in accordance with Mexican regulations, while the foreign investor concentrates on the production activities

Sofía Hanna Sofía Hanna Journalist and Industry Analyst