Resources, Workforce, Tech Make Durango a Top FDI Destination

Q: What makes Durango an attractive destination for investors, and what are its main advantages?

A: Durango offers significant advantages for foreign direct investment (FDI). Under the administration of Gov. Esteban Villegas, the state has made FDI a top priority to drive growth in key sectors such as construction, manufacturing, and commerce. The government provides tailored support based on each project’s needs, a strategy that has led to a record 32 new investments during the first two years of this administration, generating 27,000 direct jobs and attracting over MX$100 billion (US$4.9 billion) in FDI.

Durango’s strengths lie in its infrastructure and abundant natural resources. The state has a 30% electricity surplus and abundant water thanks to the Sierra Madre Occidental and the federal Agua Saludable para La Laguna  (Healthy Water for Laguna) program. Durango also benefits from one of the most affordable sources of natural gas in Mexico, supplied by the Fermaca pipeline from Texas. The state’s cost competitiveness further enhances its attractiveness, with production costs being 30% lower than in other states. Durango also ranks as one of the safest states in Mexico and has seen no recorded labor strikes in over 20 years, providing investors with an optimal climate for operations.

Q: What sectors is Durango prioritizing, and what factors are driving their growth in the state?

A: Over the past two years, we have focused on technology, clean energy, and electromobility. We also continue to support the mining industry, the thriving dairy sector in La Laguna, and the agro-industrial sector. We see significant potential for growth in the food sector. We aim to use advanced technology, including AI developed locally, to modernize agriculture, boost yields, optimize irrigation, and increase profitability. A persistent challenge is that younger generations often consider agriculture to be unprofitable. By improving efficiency and bringing buyers from regions like Saudi Arabia, the European Union, and Asia directly to them, we aim to make farming more appealing and sustainable.

Q: How is Durango diversifying its investments, and which companies and sectors are driving this shift?

A: Durango has attracted a diverse range of international investors, including companies from the United States, Canada, Italy, Germany, South Korea, Japan, and China, reflecting a balanced investment portfolio. Unlike other states, Durango has secured investments across a variety of sectors, including automotive, metal-mechanics, mining, agribusiness and technology. 

Villegas recently introduced the DuranIA project, a US$400 million collaboration with the Spanish company Drotium that aims to build an R&D facility for AI and autonomous mobility. The center will train engineers and technicians, providing pathways for talent to remain and work in Durango.

Q: What challenges do companies looking to invest in Durango’s industrial sector face, and how does the Foreign Investment Attraction Unit help them address those issues?

A: One of the main challenges companies face is retaining skilled talent. To address this, we have created a robust job market in the past two years, generating 27,000 direct jobs and about 108,000 jobs when including indirect employment. Another challenge is security. Villegas has allocated resources to invest in advanced technology and training for the state police. These initiatives are crucial to creating a stable environment where businesses can confidently invest and grow.

Q: How is Durango addressing the evolving needs of industry, and how is the state using its skilled workforce to drive sustainable economic growth?

A: We follow a triple-helix approach, collaborating closely with academia and industry. Academic institutions are adjusting their programs to meet industry demands. Durango is home to 72 universities and 78 technical schools, all of which are aligned and prepared to adapt to these changing demands. Universities are focusing on high-need areas like tech, mechatronics, and electronic engineering. The state recently secured its first hyperscale data center investment from Fermaca Technologies, a US$3.5 billion project that positions Durango as an attractive hub for data-driven and tech industries.

Q: How has the rise of nearshoring impacted Durango, and what key areas is the state targeting to capitalize on this trend?

A: Nearshoring offers a significant opportunity. The state has identified the industries most impacted by recent supply chain disruptions, such as the  automotive and semiconductor sectors. This approach has led us to secure key investments, such as the US-based Vishay Technologies for semiconductors and Sensata Technologies for sensors. We have also strategically engaged with Asian companies, particularly from China, due to their active role in nearshoring. This led to the establishment of Durango’s first EV assembly plant built by Chinese-Mexican company SEV. 

Q: How are you incorporating the state into the federal government’s development plans?

A: We are collaborating closely with the federal government and coordinating with the Ministry of Foreign Affairs to expedite permits and secure approvals, particularly concerning environmental matters. Our goal is to integrate Durango’s industrial zones with key federal infrastructure projects, including the planned industrial parks and the rail line connecting Mazatlan and Durango. This 244km rail project will link the Pacific with the United States and Canada, becoming a crucial part of the USMCA corridor. We have already secured commitments from three investors — two Mexican and one Canadian — for the Mazatlan-Durango rail line, which will complement the existing highway and connect directly to Mexico’s national rail network.

Mazatlan is poised to become a key port, especially as ports like Manzanillo and Lazaro Cardenas become saturated. Mazatlan is operating at just 35% of its capacity and it offers same-day dispatch capabilities, making it an ideal choice for handling the continuing growth in Asian trade. This strategy is vital for boosting logistics efficiency and ensuring Durango’s industrial growth aligns with the national agenda.

Q: What are your main goals for Durango, and how will you measure the success of your administration in achieving these objectives?

A: Our main goal is to transform Durango’s economic landscape. INEGI data shows that Durango is now the second-fastest growing state in Mexico, marking a significant shift from being largely overlooked in the past. Over the next four years, we aim to establish a robust industrial base to reduce the state’s reliance on government-related employment, which is about 60%-70% of Durango’s workforce. We will continue to attract investment, especially in the industrial and renewable energy sectors, to provide more diverse economic opportunities.

We are working on eight strategic renewable energy initiatives for the next year. These projects will capitalize on Durango’s solar energy and its access to low-cost natural gas for combined-cycle generation. This will help ensure the state remains competitive in energy availability, which is crucial when attracting investment.

The success of our administration will be measured by the level of industrialization in the state, the growth of renewable energy projects, and the reduction of government employment dependence. Our goal is to create a win-win environment for both investors and the government, minimizing bureaucracy and providing a clear path to sustainable growth.

The Foreign Investment Attraction Unit of the Government of Durango is responsible for overseeing the planning, coordination, and evaluation of public administration activities aimed at fostering business development in the state.