Tamaulipas

In The Middle

Staff Report

        Governor Tomás Yarrington Ruvalcaba emphasized from his first day in office his priority to turn Tamaulipas into a regional partner with a global vision, as well as to promote investment, commerce and cooperation between the state of Tamaulipas and the world.

        The governor created the Office of International Affairs and set as its main objective the strengthening of the state government’s relations and dependencies with public officials, governors, senators, legislators, embassies, private institutes and foreign organizations; and to offer support to foreign companies and to those who see Tamaulipas as an excellent partner.

        Since the current administration took office, the proposals have become reality and have earned the trust of investors. For instance, outstanding international companies such as: BASF, Dupont, Shell and Sony, among others, have chosen Tamaulipoas.

        Assembly plants stand out thanks to their ability to absorb manual labor. More than three-quarters of the state’s industrial jobs are in maquilas. Another important sector is the chemical and oil industry, which produces more than two million tons of products such as acrylic fiber and plastic resins of PVC, PP and PET; synthetic rubbers ABS and SB, as well as polymeric and styrene copolymers.

        Whereas most maquila plants are located along the border of the United States , the chemical and oil industry has selected the southern regions of the state, mainly because of its harbor infrastructure and the availability of raw materials derived from petroleum.

        Industrial growth is quickly spreading throughout the state; assembly plants have flourished in various towns in the center and south of the state. Taking advantage of the abundance of water and production of natural and synthetic fibers, important textile companies have also been settling down in these same municipalities.

        Tamaulipas’ industrial growth is made possible thanks to the state’s physical infrastructure and services; more than 20 industrial parks, electric power, fuels, a wide variety of transportation (by land, air and sea) and mainly a young labor force with high quality and productivity rates.

        The industrialization of Tamaulipas results from the combination of several factors that include the following:

        •The abundance of raw materials, power, water, an infrastructure favoring production, the state’s excellent geographic location with regard to the Mexican and overseas markets and, its most important resource, a young and enthusiastic labor force that has performed at a high rate of productivity.

        •Deregulation and administrative simplification programs offer ample opportunities to companies wishing to settle in the state; they not only allow up to 100 percent investment to foreigners, they have also put into effect swift procedures benefiting international trade.

        •Tamaulipas has promoted the development of a modern and competitive entrepreneurial culture. Production techniques have striven to reach those at the highest level of international recognition, such as Total Quality Control (TQC), Just On Time (JIT) and Maximization in the Handling of Inventories and Manufacturing Planning (MRP-II). These efforts reflect the state’s ambition to develop and nurture a world-class entrepreneurial culture.

        •Industry leaders recognize the benefits of operating under strategic alliances, as much with their suppliers as with their buyers.

        The transformation industry in Tamaulipas consists of more than 6,000 establishments, of which 39 percent are dedicated to the production of foods, drinks and tobacco; 20 percent to the metallic product manufacture, machinery and equipment and 41 percent to other activities such as textiles, paper, chemical substances and products derived from petroleum.

        As far as workers employed, the metallic product subsector, machinery and equipment includes 55 percent of the workers, followed by the nutritional products, drinks and tobacco sector, with 13 percent. However, the majority of the value of production is in the chemical and oil industries.

        The most important maquila segments, according to the number of employees, are the automotive branch and the electrical and electronic articles and accessories; both represent 68 percent of the jobs created by the maquilador sector.

        World class companies in the state include General Motors, Mitsubishi, Sony, Packard Electric, Fruit of the Loom, Northern Electric, McGraw Edison, Zenith, General Electric and Caterpillar.

        Outside the maquila industry, the Pemex Madero refinery processes 200 thousand barrels of petroleum a day. It has been the base for the development of the chemical and petrochemical industry.

        The textile branch is also increasing its participation in the maquila sector. In 1993 there were 37 establishments dedicated to textiles, with 4,500 employees. By 1998, several of the existing plants had increased their capacity and 27 new ones were established, mainly in the center and the south of the state, generating 9,050 new employments.

        The expectations for development of the textile branch are encouraging. The conditions for producing synthetic fibers, for cultivating cotton and the abundance of water of the region, are some factors that motivated important manufacturing fabric companies to settle in Tamaulipas.

Where to invest

        Ciudad Mante is an important regional commercial center south of Tamaulipas. The main economic activity is agriculture; with cotton and sugar cane the primary crops. Vegetables and fruit trees are also cultivated.

        The level of development of Ciudad Mante is attractive for investors and new inhabitants who look to improve their quality level of life. Ciudad Mante has obtained a good level of development thanks to the abundance of its natural resources, the availability of basic public services and the good quality of its labor force.

        Ciudad Mante is a region where the ecotourism and the tourism of year-round sport fishing  can be practiced. The possibilities of adventure in the region of Ciudad Mante are multiple; the visitor can find the most beautiful ecosystems, such as “El Cielo”, a biosphere reserve that includes part of several municipalities in the south part of the state.

Matamoros

        Traditionally agricultural, in the last 20 years, Matamoros has experienced an impressive industrial and commercial development, due to the expansion of the assembly industry. More than 50 percent of the labor force is employed in the automotive and the electrical and electronic articles and accessories industries; making possible the creation of automotive and electronic clusters.

        Matamoros is well communicated; it has an international airport, and has easy access to the United States .

Nuevo Laredo

        Nuevo Laredo , located in the southwestern part of the state, is contiguous to the north with the United States of America and the Nuevo León state; to the south with the Guerrero municipality of the same state, to the east with the United States and to the west with Nuevo León state.
        Nuevo Laredo , by its geographic location, is the most important border harbor of the country, a characteristic that has allowed the region to develop quickly, not only in the trade sector and services, but also in the industrial sector, basically in the assembly industry. The primary sectors are automotive, electrical and electronic articles and accessories.
        Nuevo Laredo has all the services of a modern city; professional education, sufficient urban and industrial infrastructure, sports and relaxation centers, it has an appropriate quality level of life.

Reynosa

        Reynosa , located in the north part of the state, has a diversified economy. The commercial agriculture has been developed thanks to the terrain of the land, and the availability of a modern irrigation system that allows two annual harvests.

        The petroleum industry also has an important role in the economy. Reynosa is home to a refinery, a gas plant, and a gas line that distributes gas to Monterrey , Matamoros and Miguel Alemán.

        Thanks to its extraordinary geographic location, physical infrastructure and a productive, young labor force; the assembly industry has had great growth. The sector that has developed most is the electrical and electronic accessory and articles.

Tampico-Madero

        With about 800,000 residents, the zone of the south of Tamaulipas is the most important harbor zone and industrial development of northeast Mexico .

        The economic development of the zone is based on the activities related to the petroleum operation, started at the beginning of the century and centered, at the moment, in the hydrocarbon refinement in Ciudad Madero; to the intense harbor, trade, fishing and tourist activities in the Tampico harbor and the industrial and harbor dynamic development in the industrial harbor of Altamira. 

Ciudad Victoria

        As state capital, Ciudad Victoria is characterized by the concentration of federal, state and municipal government services. Traditionally the main economic activities were the trade and services, nevertheless, in the last few years, several assembly plants have been established here.

        The fast growth of the industrial sector is mainly because of advantages that the city offers; excellent geographic location, easy access to major rail lines and highways, modern systems of communication; availability of land, available labor and excellent labor relations.