Sinaloa to Boost Investment By Focusing on Sustainability

Q: What are the key sectors driving economic growth in Sinaloa?

A: The main industries in Sinaloa remain agriculture, livestock, and fishing, which in the past earned the state the nickname "the granary of Mexico." However, we have implemented an industrial strategy focused on strengthening the secondary sector by attracting projects that generate high-value jobs. This long-term vision is executed by the Sinaloa Economic Development Council, a decentralized, mixed entity that sets public policies that transcend changes in government, promoting a constant strategy to attract investment.

Our approach has yielded results in sectors such as light manufacturing, specifically in the automotive and electronics industries. We are also making progress in more advanced industries like aerospace, medical devices and chemicals. 

Q: What specific strategies are positioning Sinaloa as an attractive destination for foreign investment?

A: Our office has a business-oriented vision designed for investment promotion. CIT Sinaloa operates with a collaborative approach between the public and private sectors. We work to project certainty and trust among businesspeople. Agreements reached with potential investors remain valid despite government changes, reinforcing stability and trust in the commitments made. Our model guarantees that agreements will endure regardless of the administration. We do not make the mistake of seeking only immediate or short-term results. We plan for the short, medium and long term, ensuring the sustainability of strategies and generating certainty both internally and externally.

Our work plan includes specialized tools and innovative practices. We use databases like CIAL Dun & Bradstreet’s to identify companies with the right profile, evaluating factors such as the type of manufacturing, size, corporate structure, and sector. We strive to exceed the expectations of investors, which often leads to positive feedback. We also participate in specialized events, such as industrial fairs and congresses. 

Q: How would you summarize the role of the CIT Sinaloa in facilitating access to investments for SMEs?

A: CIT Sinaloa and the Sinaloa Economic Development Council (CODESIN) play a crucial role in facilitating access to investments, especially in the integration of SMEs into the supply chains of large companies. We focus on the development of local suppliers, particularly medium-sized businesses.

We work directly with large manufacturing companies that seek to increase the local content in their production by helping develop local suppliers. For example, in the aerospace sector, we identified eight local companies that could integrate into the supply chain of larger companies thanks to their capabilities in areas such as steel handling, advanced equipment, and research. We also facilitate the development of specialized workshops that subcontract specific processes for foreign companies, such as using lathes or specialized machinery. This not only helps SMEs integrate into supply chains but also generates lucrative contracts that drive their growth. 

We continuously seek to identify and leverage local talent and technological capabilities. Integrating local SMEs into larger supply chains generates an economic spillover, while building up the potential and technological capabilities of local entrepreneurs.

Q: How do state policies and regulations impact Sinaloa’s investment landscape, and what legislative changes are expected to improve this environment?

A: The government is now updating Sinaloa’s Investment Promotion Law, which needs to be adapted to the new conditions and priorities of the state. Investment dynamics have changed, and the law must be updated to address the needs of the business sector. This updating process is crucial, as the legal framework is the umbrella that provides us with the tools and resources to implement effective public policies. CODESIN is also proposing updates to this law, ensuring that it aligns with the needs of businesspeople and the global economic environment.

Both the Ministry of Economy and CODESIN understand the importance of operating under a legal framework that supports and encourages investment. This updating process is being carefully planned to ensure that the regulatory framework meets market demands and new business opportunities.

Q: What incentives will the new Investment Promotion Law offer, and how do they compare to those in other states?

A: Sinaloa’s Investment Promotion Law will include several incentives, divided into three components. The first is tax reduction and exemptions on some property taxes (predial), construction licenses, and payroll taxes, with discounts that can reach up to 100% for a period of up to seven years. These reductions provide significant savings, especially during the early stages of projects, and position Sinaloa competitively compared to other states.

The second component is soft landing, which helps businesses settle by providing support to navigate permits, paperwork, and other logistical challenges. This reduces costs and accelerates the startup process, improving operational efficiency.

The third component includes additional incentives, which vary depending on the type of project, and may include in-kind support or specific infrastructure. While direct economic incentives are becoming less frequent due to budgetary constraints, adherence to agreements is crucial to provide businesses with certainty.

Q: How does the center incorporate sustainability into investment strategies? 

A: Sustainability is a key component of Sinaloa’s investment attraction strategy, and it is integrated through various pillars promoted by CODESIN. These pillars include fundamental aspects like the rule of law, education, health, and innovation. Our regional projects incorporate sustainability elements like decarbonization and the use of renewable energy. We seek companies with a strong sustainability profile, and prioritize those that focus on environmental protection and use clean energy and sustainable production practices.

Sinaloa has already attracted companies from the chemical sector, including one that produces green methanol and another working with green hydrogen using photovoltaic energy. We are developing an initiative to create the first green maritime corridor in the ports of Sinaloa. This project includes the use of synthetic fuels in maritime transport and is aligned with decarbonization strategies promoted by the UN Conference of the Parties (COP).

Q: What trends will impact trade and investment in Sinaloa in the next five to 10 years?

A: One of the key trends that will impact investment in Sinaloa is talent. Industries and sectors like electromobility and semiconductors require highly specialized talent. While Sinaloa has successfully attracted more complex industries such as aerospace, automotive, and additive manufacturing, it faces a challenge in retaining and attracting technical talent, such as engineers and robotics specialists, due to the former lack of local opportunities.

To move forward, Sinaloa is focused on strengthening training in high-demand areas like semiconductors, robotics, and electromobility. The state is collaborating with universities and institutes to prepare the engineers these industries need. 

Q: How is Sinaloa supporting the education of engineers, and what actions are being taken to attract specialized talent to the state?

A: Sinaloa is working to position itself as a provider of Tier 2 and 3 manufacturing processes by attracting companies specializing in more technical processes, such as plastic injection, casting, and precision machining. The goal is to create a base of local expertise that makes Sinaloa an attractive destination for Tier 1 companies, such as those involved in transmission and engine assembly.

To achieve this, Sinaloa is working closely with universities, which are willing to adapt and offer curricula that meet the sector's needs. Foreign companies that come to Sinaloa meet with universities to ensure that their labor demands are understood and that talent development aligns with their expectations.

Sinaloa is aware that industrial maturity and the training of its human capital will take time, but it is committed to providing skilled labor for both production lines and more technical areas, such as robotics and electromobility. 

Q: What are the main challenges Sinaloa faces in attracting investment, and what measures have been taken to address them?

A: Sinaloa has identified several challenges and opportunities in its effort to attract more investment. One of the main obstacles is the lack of available industrial space for projects that need to be implemented quickly. While the state has several industrial parks, there is an opportunity to create more parks with inventory-ready buildings, which would allow for immediate occupancy. Alliances are being established with national business groups that specialize in the construction of these spaces. 

Q: Which recent projects showcase the results of the state’s investment strategy?

A: Tetakawi’s case stands out, as it successfully attracted its first aerospace company specializing in manufacturing parts for turbines. This investment marks the beginning of Sinaloa’s aerospace sector, changing the state's export profile.

Automotive company Sumitomo is building its 13th plant in the state for the assembly of harnesses. The company has generated over 8,000 jobs. This company evolved beyond basic assembly to produce its own equipment, adopting robotics processes for designing and manufacturing harnesses. This is a clear example of how Sinaloa has helped companies grow not only in employment but also in the sophistication of their production processes.

Finally, a recent project under development is a green hydrogen plant, with an estimated investment of US$1 billion. This project represents a significant opportunity for Sinaloa in the transition to renewable energy and to be a leader in Mexico in the efforts in decarbonization trough the production of synthetic fuels for larger ships.