They produce products ranging from boxcars to the kitchen sink, Christmas trees, diesel engines and t-shirts. In Mexico’s northeast corridor it seems nothing is impossible and most is less expensive to manufacture.

      “We continue to emphasize lower- cost production out of the U.S. and Mexico, rather than our Canadian facility, which is currently being used for specialized capacity,” says William A. Furman, president and chief executive officer of Greenbrier. Furman’s company recently announced a joint venture in Monclova, Coah. that will build railroad freight cars.

      In Ramos Arizpe, Coah., near booming Monterrey, N.L., Whirpool Corp. is bringing jobs in the white goods sector.

      The changes are part of an ongoing comprehensive worldwide effort to optimize the company’s regional manufacturing facilities, supply base, product platforms and technology resources to better support its leading global brands with innovative products.

      Whirlpool is planning to expand production of side-by-side refrigeration products at its Ramos Arizpe refrigeration manufacturing facility beginning in 2007. Once that expansion is complete, approximately 700 employees at the Whirlpool facility in Fort Smith, Ark., are expected to be laid off the first half of 2008 as additional models currently manufactured in Fort Smith will move to the Ramos Arizpe plant. Whirlpool recently completed the voluntary layoff of about 940 employees in Fort Smith by transferring production of some models to the Ramos Arizpe facility.

      “Whirlpool’s leadership position in the appliance industry is built on our ability to offer consumers a portfolio of leading brand names supported by innovative products and services,” said David L. Swift, president, Whirlpool North America. “These initiatives strengthen Whirlpool’s industry leading position while also improving productivity and efficiency across our North American manufacturing platform.”

      The states of Coahuila, Nuevo León, San Luis Potosí and Tamaulipas are connected by a thriving automotive sector. Assembly plants are in Monterrey, N.L., Saltillo, Coah. and San Antonio, Texas. A well-developed network of suppliers blankets the four states.

      The northeast corridor, however, is also known for other industries. An emerging aerospace cluster leads the way, but the region is also strong in metal-mechanics, electronics, durable goods and plastics.

      Among the companies taking advantage of Coahuila’s strengths is Canada’s Greenbrier Companies. Greenbriar and Grupo Industrial Monclova recently announced a joint venture to build new railroad freight cars for the North American marketplace. The railcars will be built at GIMSA’s existing manufacturing facility in Monclova, Coah.

      Railcar production capabilities will include a variety of new conventional railcars, and production is expected to commence in the second calendar quarter of 2007 with an initial focus on covered hopper cars. Capacity is expected to grow to 3,000 new railcars annually, with multiple production lines and about 1,200 direct workers.

      “We are very pleased to be joining forces with GIMSA, a well-respected company which has heavy manufacturing capabilities, high quality standards and an excellent business reputation,” says William A. Furman, Greenbrier president and CEO. We anticipate Greenbrier - GIMSA will be a key contributor to Greenbrier’s new railcar production going forward.”

      GIMSA is a major supplier in Mexico of lime and fluxes necessary for the production of steel. It also provides other services and products for the steel industry and, through its industrial division, is a significant buyer of steel in Mexico. GIMSA’s Monclova facility, built in 1951, is adjacent to the FerroMex main rail line, with eight industrial bays and 370,000 square feet of production space on a 59-acre site. Greenbrier — GIMSA will occupy a portion of the total plant space.

Why here?

      Coahuila is located mostly in the east part of a large climatic area known as the Chihuahuan Desert. It is characterized by continental climates and can be divided into three general zones according to its climates. The west is very dry; the central and south part include climates that go from the very dry and dry semi warm climates of their hollows and valleys to the mild semi dry and the mild sub humid of the mountains hills. And the northeast is semi dry and dry with a notable maritime influence.

      The main cities in Coahuila include Saltillo, Torreón, Ramos Arizpe, Monclova and  Piedras Negras. There are nearly half a million permanent employees in the state.

      Coahuila’s main industrial activity includes the following:

      •Automobiles and auto parts.

      •Aerospace.

      •Dairy products.

      •Electrical-electronics.

      •Information technologies.

      •Metal-mechanics.

      •Mining-metallurgy.

      •Textile and apparel.

      The state has a permanent promotion campaign aimed at attracting new investment, which includes, among other thing, promotional material, publications in specialized international magazines and participation in international trade fairs and exhibitions related to those industries that are present in Coahuila.

      The state is divided in five different regions. Each has promotional agencies or state representatives to assist promotion. There is also an International Office in San Antonio, Texas, which acts as a link for companies of Coahuila in need of support for their commercial operations in United States.

  Among the services offered by the state government are:

  •Infrastructure certification.

  •Services certification.

  •Zoning/Real estate certification.

  •Complete support in carrying out the necessary procedures before the appropriate local, state and federal government agencies.

      Basic incentives available to industry include:

      •Investor’s Assistance Office.

      •Special Training Program for Non-Qualified Workers.

      •Exemption on State Payroll Tax.

Nuevo León

      Nuevo León is Mexico’s success story. The state has 4 percent of Mexico’s total population yet represents 7.3 percent of the nation’s GDP, equivalent to $54.5 billion.

      Nuevo León produces 10.9 percent of all of Mexico’s manufactured goods, equivalent to $12.1 billion. Its per capita income is $13,096.

      Nuevo León’s total exports in 2005 were $13.1 billion. It is the second largest destination in Mexico for foreign investment in México, averaging $1 billion a year.

      Major industrial sectors include:

      •Automotive, auto parts and components.

      •Home appliances and components.

      •Electrical and electronic equipment.

      •Metal mechanic products.

      •Steel, glass and cement.

      •Specialized medical services.

      •Academics.

      There are more than 30 colleges and universities totaling more than 150,000 students. Monterrey Tech and the University of Monterrey, are two of the most prestigious universities in Latin America, while The State University of Nuevo León (UANL) is ranked as one of the best state universities in Mexico. There are nearly 60 bilingual schools and more than 200 technical schools with a total of 52,000 students.

      Nuevo León uses the following incentives to promote foreign investment:

      •Reduction or exemption from payroll tax and other taxes.

      •Preferential rates in the payment of Public Register fees.

      •Staff training.

      •Grants for workers.

      •Reduced prices offered for property located outside the Metropolitan Area of Monterrey.

      •Guidance for forming companies.

      •Single window for formalities.

      •Guidance in dealing with financial institutions.

San Luis Potosí

      San Luis Potosí features a privileged geographical location, modern infrastructure for production and services, skilled human resources, stable labor climate, extensive supply of skilled labor, salaries lower than in several other Mexican states and an active population that accounts for more than 39 percent of the total population.

      Main cities include San Luis Potosí, Soledad de Graciano Sánchez, Ciudad Valles, Matehuala and Rioverde. The state can be reached by air through one of four airports, or by rail or highway. Its main industries include:

      •Metal-mechanic.

      •Steel.

      •Home appliances.

      •Food.

      •Construction.

      •Auto-parts.

      Cummins ReCon is one of several global manufacturers succeeding in San Luis Potosí. Cummins recently opened a state-of-the-art production facility in the state to remanufacture ISX diesel engines.

      Each engine is disassembled, inspected and remanufactured. When necessary, materials are upgraded to the latest Cummins technology before being reassembled.

      The state offers the following incentives for foreign investors:

      •One window policy. One person will be assigned to help with all permits and licenses before federal, state and county authorities.

      •Scholarships for training.

      •100 percent discount on state payroll taxes for the first year of operation.

      •The support of the Secretariat of Economic Development for the search and incorporation of local  and regional suppliers through its supply chain department.

      •Preferential land prices within industrial use areas and/or state owned industrial areas.

      There currently are nearly 200 foreign companies located in the state and FDI in 2005 reached $118.9 million.

Tamaulipas

      Tamaulipas is another of Mexico’s top industrial states. Main cities include Nuevo Laredo, Reynosa, Matamoros, Victoria, El Mante, Tampico, Madero and Altamira It also features major ports in Tampico, Altamira and, Puerto El Mezquital.

      Major industrial activity includes:

      •Petrochemicals.

      •Electronics.

      •Automobile and auto parts.

      •Textiles.

      In Tamaulipas, potential investors are given all the necessary support on their business trips to the state, including any information they may need in order to make a decision about investing in Tamaulipas. Conti-nuity is provided for the purposes of promotion until a decision is made to set up business in the state.

      State incentives for foreign investment include:

      •Reduced taxes.

      •Labor exchange.

      •Training grants.

      •Free procedures for obtaining permits, registers, authorizations and licenses.

      Major maquila centers are in Matamoros and Reynosa. Valley Dynamo is a Dallas,Texas company that recently decided to move to Reynosa.

      Valley-Dynamo, a division of Brunswick Corporation, will move its manufacturing operations to Reynosa, from Richland Hills, Texas. The company will locate its new facility alongside another recently opened Brunswick manufacturing operation.

      Valley-Dynamo’s plant transition will take place over the next several months and is expected to be transparent for customers of the industry’s leading manufacturer of coin-operated and consumer pool, air hockey, foosball tables. Concurrent with the completion of the move, which is anticipated to eventually lead to a reduction of 90 positions, Valley-Dynamo will relocate to a new headquarters and distribution warehouse in the Dallas-Fort Worth area housing its executive, administrative, sales and distribution personnel.

      “We’ve made a tough decision that will affect lives and are taking every step possible to ensure a soft landing for affected employees, including outplacement and severance,” says Dave Tomizuka, president of Valley-Dynamo. “Despite several years of efforts to maintain manufacturing operations in the United States, consolidating our manufacturing operation with other world- class Brunswick operations in Mexico will allow us to realize substantial cost savings necessary to remain competitive and ensure our leadership position in the industry.”

      Valley-Dynamo is the leading manufacturer of commercial-quality pool, air hockey and foosball tables and is a leading provider of coin-operated prize redemption equipment.

      But with the increased manufacturing in the region comes opportunity. Over the past decade the region has seen rapid growth in trade and a burgeoning maquiladora industry. Today existing infrastructure and municipal services are heavily overburdened by the increased traffic and expanding populations accompanying this growth. It is estimated that an investment of more than $2 billion is needed to build new infrastructure in the Mexican border region.

      Reynosa has a population of approximately 750,000 and is located across the border from McAllen, Texas in the state of Tamaulipas. Matamoros, is located on the southern bank of the Rio Grande, directly across from Brownsville, Texas in the state of Tamaulipas and has an approximate population of 450,000.

      To meet the needs of rapidly growing cities, Reynosa and Matamoros have identified key objectives for a sustainable future. The priority areas identified are:

      •Water treatment.

      •Transportation.

      •Municipal administration.

      •Waste management.

      •Energy.

      •Tourism and economic development.

      •Housing.

      •Urban planning and infrastructure.