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					Great investment opportunities
             in the best place to live


Morelos
M         E       X                 I                  C                   O

Strategic location for global business.
                        Located only 50 miles south of Mexico City, by far the largest market
                      • L      d l         il       h f M i Ci
                        in Latin America
                      • Straight in the middle of the inter-oceanic highway; 260 miles from
                        the Seaport of Veracruz on the Gulf of Mexico


Highly qualified human capital
                        Highly kill d kf
                      • Hi hl skilled workforce
                      • Steady supply of engineering and science graduates


An outstanding innovation environment
                      • Host to 39 research centers ready to support innovative projects like no other
                        region in Mexico
                      • More than 1,500 scientists, many of whom are involved in highly relevant topics
                        such as biotechnology, applied physics, energy & fuels, materials, science, water
                        technology and others


Exceptional life quality
                        Famous worldwide for its ideal climate and natural beauty
                      • F
                      • Known as the “city of eternal spring,” Cuernavaca — the state Capital —
                        and its surroundings have become a cosmopolitan metropolis
                      • A wide array of high quality entertainment, cultural and educational options




                                 Economic Development Secretariat
                                 +52 (777) 313 5680
                                 www.businessinmorelos.gob.mx
                                 business@morelos.gob.mx
2 Negocios




                                   Contents




                                                        Centennial


                                                                        22
                                                         Companies
                                                            writing
                                                            history
                                                          in mexiCo




   Briefs	          	                                      		   	   	   	   	   6
   Mexico’s	Partner					foXconn	                           		   	   	   	   	   13
   Business	Tips	       	                                  		   	   	   	   	   16



                                               18
               trade – reflecting history
              Mexico’s bilateral trade relations have
               undergone major changes and have
               witnessed to the country’s historical
                                           evolution.
                   offiCes abroad

North America
Regional Director                                              ProMéxico
                                                              Headquarters
jorge.lopez@promexico.gob.mx

Offices in: Chicago, Dallas, Houston, Los
Angeles, Miami, Montreal, New York,
Toronto and Vancouver                                   + 52 (55) 544 77070
Chicago
miguel.leaman@promexico.gob.mx
                                                   promexico@promexico.gob.mx
Dallas
                                                      www.promexico.gob.mx
carlos.marron@promexico.gob.mx

Houston
armando.camarena@promexico.gob.mx
                                            Guatemala                                 Milan
Los Angeles                                 ignacio.elias@promexico.gob.mx            claudia.esteves@promexico.gob.mx
mario.juarez@promexico.gob.mx
                                            Santiago de Chile                         Paris
Miami                                       joel.enriquez@promexico.gob.mx            dolores.beistegui@promexico.gob.mx
cesar.bueno@promexico.gob.mx
                                            Sao Paulo                                 Stockholm
Montreal                                    juan.pintoribeiro@promexico.gob.mx        nicole.felix@promexico.gob.mx
alfonso.mojica@promexico.gob.mx

New York
gerardo.patino@promexico.gob.mx             Europe                                    Asia - Pacific
Toronto                                     and Middle East                           Offices in: Beijing, Mumbai, Seoul,
                                                                                      Singapore, Taipei and Tokyo
jose.peral@promexico.gob.mx
                                            Offices in: Brussels, Dubai, Frankfurt,
Vancouver                                   London, Madrid, Milan, Paris and          Beijing
carlos.cacho@promexico.gob.mx               Stockholm                                 ari.saks@promexico.gob.mx

                                            Brussels                                  Mumbai
Latin America                               alejandro.saldivar@promexico.gob.mx       aldo.ruiz@promexico.gob.mx

and South America                           Dubai                                     Seoul
                                            jose.neif@promexico.gob.mx                miguel.delvillar@promexico.gob.mx
Offices in: Bogotá, Buenos Aires,
Guatemala, Santiago de Chile and            Frankfurt                                 Singapore / New Markets
Sao Paulo                                   jimena.ibarra@promexico.gob.mx            francisco.bautista@promexico.gob.mx

Bogotá                                      London                                    Taipei
carlos.edgar@promexico.gob.mx               alexandra.haas@promexico.gob.mx           cesar.fragozo@promexico.gob.mx
Buenos Aires                                Madrid                                    Tokyo
juancarlos.rodriguez@promexico.gob.mx       ximena.caraza@promexico.gob.mx            esau.garza@promexico.gob.mx
4 Negocios




                                                                                                                                                                                           proméxiCo
                                                                                                                                                                                           ricardo rojo
                                                                                                                                                                                           image and communications director

                                                                                                                                                                                           sebastián escalante
                                                                                                                                                                                           Managing coordinator
                                                                                                                                                                                           sebastian.escalante@promexico.gob.mx

                                                                                                                                                                                           Miguel Ángel samayoa
                                                                                                                                                                                           advertising and suscriptions
                                                                                                                                                                                           negocios@promexico.gob.mx

                                                                                                                                                                                           fernanda luna
                                                                                                                                                                                           copy editing


                                                                                                                                        42                                                 taller méxiCo




                                                                                                                                                           Photo COURTESY OF willY SOUSa
                                                                                                                      Interview                                                            alejandro serratos


                                                                                                             willy
                                                                                                                                                                                           Publisher
                                                                                                                                                                                           a.serratos@tallermexico.com


                                                                                                            sousa
                                                                                                                                                                                           felipe Zúñiga
                                                                                                                                                                                           editor in chief
                                                                                                                                                                                           felipe@tallermexico.com
                                                                                                  Mexico:                                                                                  orlando santamaria

                                                                                          World Sensation                                                                                  Marketing Manager
                                                                                                                                                                                           orlando@tallermexico.com

                                                                                                                                                                                           Pilar Jiménez Molgado
                                                                                                                                                                                           design director
                                                                                                                                                                                           pilar@tallermexico.com

                                                                                                                                                                                           Jorge silva

The lifestyle Contents
                                                                                                                                                                                           design
                                                                                                                                                                                           jorge@tallermexico.com

                                                                                                                                                                                           dalia Urzua orozco
                                                                                                                                                                                           design
                                                                                                                                                                                           dalia@tallermexico.com

                                                                                                                                                                                           Paloma lópez
                                                                                                                                                                                           Production
                                                                                                                                                                                           paloma@tallermexico.com

                                                                                                                                                                                           Vanessa serratos
                                                                                                                                                                                           Production assistant
                                                                                                                                                                                           vanessa@tallermexico.com

                                                                                                                                                                                           Vanesa robles
                                                                                                                                                     Photo COURTESY OF Canana FilmS




                                                                                                                                                                                           senior Writer
                                                                                                                                                                                           vanesarobles@gmail.com

       56                                                                                                                                                                                  Karla Juárez
                                                                                                                                                                                           sandra roblagui
                                                                                                                                                                                           lucila Valtierra
       Film                                                                                                                                                                                Mauricio Zabalgoitia
       the revolution                                                                                                                                                                      staff Writers

       is still going on                                                                                                                                                                   translation
       in Cinema                                                                                                                                                                           alejandra díaz alvarado
                                                                                                                                                                                           Juan Manuel romero
                                                                                                                                                                                           luis cabrera

                                                                                                                                                                                           proof reading
                      46 Entertainment                                             60 The Lifestyle Report                                                                                 graeme stewart
             CirCo atayde hermanos                                                 mexiCo:
                                                                                   a promising                                                                                             Contributors
                                                                                                                                                                                           antonio Vázquez, Ulises hernández,
                        48 Science & Technology                                    destination                                                                                             María cristina rosas, María eugenia
                        mexiCan inventions                                                                                                                                                 sevilla, cristina Ávila-Zesatti, oldemar.
                                                                                   62 Feedback
                                                                                                                                                                                           Cover illustration
           52 The Lifestyle Feature                                                fundaCión pro mixteCa:                                                                                  ricardo luévanos
 mexiCo: 200 years of history                                                      making dreams Come true
                                                                                                                                                                                           this is an editorial project for ProMéxico
ProMéxico is not responsible for inaccurate information or omissions that might exist in the information provided by the participant                                                       by taller méxico (www.tallermexico.com).
companies nor of their economic solvency. title certificate of lawfulness 14459. text certificate of lawfulness 12032. number of title
reserve 04-2009-012714564800-102. Postal registry PP09-0044. responsible editor: sebastián escalante. Printing: Moiño impresores
s.a de c.V. distribution: ProMéxico camino a sta teresa 1679, México d.f., 01900. Phone: +52 (55) 5447 7000. negocios is an open                                                           Download the PDF version
space where diverse opinions can be expressed. the institution might or might not agree with an author’s statements; therefore the                                                         of Negocios ProMéxico at:
responsibility of each text falls on the writers, not on the institution, except when it states otherwise. although this magazine verifies all the                                         negocios.promexico.gob.mx
information printed on its pages, it will not accept responsibility derived from any omissions, inaccuracies or mistakes. september, 2010.
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www.promexico.gob.mx
negocios@promexico.gob.mx
+ 52 (55) 5447 70 70
6 Negocios                                                                           Photos COURTESY OF GE EnERGY FinanCial SERviCES / aRChivE




   AUTOMOTIVE                   RENEWABLE ENERGY


   Number     Helping Mexico Meet
   One In The Its Environmental Goals
   Americas                     Subsidiaries of Spain-based Aben-
                                goa and GE Energy Financial
   german auto-making           Services, a unit of GE, will invest
   giant Volkswagen (VW)        180 million usd to develop the larg-
   plans to invest 1 billion    est cogeneration power plant in
   usd in Mexico over the       Mexico.
   next three years. a por-          The 300-megawatt gas-fired
   tion of that investment      facility with a total project cost
   will go to constructing      of 640 million usd will be located
   a new production plant       at the Nuevo Pemex gas process-
   in Mexico for the Beetle     ing complex, owned by Pemex
   successor.                   Gas y Petroquimica Basica, a
        according to a report   subsidiary of Mexican state oil
   from automotive news         company Pemex. Located near
   magazine, VW’s plant         Villahermosa, Tabasco, the plant
   in Puebla, Mexico, was       will supply Nuevo Pemex with
   the industrial complex       power and steam under a 20-year
   throughout the north         services agreement. Powered by
   american free trade          cleaner burning natural gas, the
   agreement (nafta)            facility will help the Mexican gov-
   region that manufac-         ernment meet its commitment to         the Engineering and Industrial        mand; additional power output
   tured the largest number     reduce greenhouse gas emissions        Construction Business Group of        will be provided to other Pemex
   of automobiles in July       by 50% below 2002 levels by the        Abengoa– and GE Energy Finan-         operations throughout Mexico over
   2010. the report lists the   year 2050.                             cial Services will own the project,   its national transmission system.
   10 plants with the larg-          The Abengoa subsidiaries          which is expected to directly sup-
   est production in north      Abener Energia and Abengoa             ply 55% of Nuevo Pemex’s steam        www.abengoa.es

   america and ranks VW’s       Mexico –companies of Abeinsa,          demand and all of its power de-       www.geenergyfinancialservices.com

   plant in Puebla as num-
   ber one, with a produc-
   tion volume of 42,400        RENEWABLE ENERGY
   units in July 2010.

                                Mexico Discusses
        VW’s plant in Puebla
   is followed by gM, toyo-

                                Its Regulation
   ta, hyundai, honda and
   ford plants in the Us and

                                On Renewable Energies
   nissan’s plant in aguas-
   calientes, Mexico.
        in accrued figures
   from January to July
   2010 Automotive News         Current Mexican regulations regarding clean and renewable ener-
   ranks VW Puebla sec-         gies will be the main subject of an important forum, which will be
   ond among industrial         held in Mexico City, from October 5th-7th, 2010. During this event,
   complexes with the larg-     organized by the national Energy Regulatory Commission, several
   est production volume        project incentives, business opportunities and a general overview of
   in north america, with       key aspects related to renewable power generation in the country
   236,000 units.               will be presented.

   www.vw.com.mx                www.cre.gob.mx/fororenovables
                                                                           briefs.




                            ENERGY


                            Electrifying Contract
                            A consortium led by Spanish electric infrastructure company
                            Elecnor has been awarded a 35.3 million usd contract to design,
Photo COURTESY OF ElECnOR




                            supply, build and start up five substations in the Mexican states of
                            Baja California and Sonora, as well as four transmission lines in
                            Baja California and Mexico’s Northwest region. The five substa-
                            tions will have a capacity of 305 megavolt amperes (MVA), with 19
                            feeders, while the four transmission lines will have a total length
                            of 59.74 kilometers.

                            www.elecnor.es
8 Negocios                                                                        Photos COURTESY OF SiGma alimEnTOS / GEnERal mOTORS / aRChivE




  FOOD


  Sigma Goes For US Market
   ALFA, parent company of Sigma Alimentos, the largest manufac-
   turer of frozen and refrigerated foods in Mexico, has reached an
   agreement to acquire Bar-S Foods Co., to expand its presence in the
   US packaged meats market.
       The merger of Bar-S and Sigma’s US operations is subject to
   necessary regulatory approvals from US authorities. Phoenix-based
   Bar-S is a privately owned company that produces and markets pro-
   cessed meats. The company operates three production plants and
   one distribution center in Oklahoma. In 2009, Bar-S reported sales
   of 535 million usd and more than 1,600 employees.
       Sigma, headquartered in Monterrey, Mexico, operates 30 dairy,
   meat, prepared meals and beverage plants and more than 100 distri-
   bution centers throughout Mexico and sells food products through-     AUTOMOTIVE
   out Central and South America and the Caribbean. Its revenues in

                                                                         GM Bets On Mexico
   2009 exceeded 2 billion usd.

   www.sigma-alimentos.com

                                                                         general Motors (gM) will invest       the domestic and international
                                                                         500 million usd to renovate its       markets. the new investment
                                                                         plant in ramos arizpe, in the         would generate 390 jobs.
                                                                         Mexican northern state of coa-            gM has been present in
                                                                         huila. of that amount, the com-       Mexico since 1935, where it
                                                                         pany is investing 284 million         has some 11,000 workers, four
                                                                         to manufacture eight-cylinder         factories, an engineering cen-
                                                                         engines with spark-ignition           ter and a test circuit. over the
                                                                         direct-injection    technology,       last four years, the company
                                                                         known as sidi. another 215            has invested 4.1 billion usd in
                                                                         million will go toward upgrad-        Mexico.
                                                                         ing the factory’s production
                                                                         lines to build a new vehicle for      www.gm.com.mx




                                                                         FOOD


                                                                         The Emporium Expands
                                                                         Grupo Bimbo has reached an agreement to acquire the core assets
                                                                         of Mexican confectionary group Dulces Vero for an estimated 85-95
                                                                         million usd. Vero was founded in 1952 and produces a wide range of
                                                                         sweets and confections. It employs 1,500 associates and had a turnover
                                                                         of 87 million usd and Earnings Before Interest, Taxes, Depreciation and
                                                                         Amortization (EBITDA) of about 17 million usd in 2009.
                                                                              The acquisition of these assets strengthens Grupo Bimbo’s position
                                                                         in the Mexican confectionary market through its Barcel subsidiary.
                                                                         Furthermore, Vero’s products will complement Barcel’s portfolio in the
                                                                         US Hispanic market and provide an opportunity to expand the com-
                                                                         pany’s presence in the US.

                                                                         www.grupobimbo.com.mx
                                                                                           briefs.
                INVESTMENT FUNDS                    ELECTRONICS


                BlackRock                           Technicolor’s
                Strengthens                         New Investment
                Its Presence                        The French digital media manu-
                                                    facturer Technicolor is invest-
                Blackrock inc., the world’s         ing 11.4 million usd in its plant
                largest money-management            in Guadalajara, in the state of
                firm by assets, aims to double      Jalisco, to boost its production
                its 13 billion usd portfolio in     capacity and start manufactur-
                Mexico within the next three        ing 3D Blu-ray discs for Warner
                years on the back of demand         Brothers, after both companies
                by institutional and foreign in-    entered into a long term contract
                vestors for exchange-traded         covering replication and distribu-




                                                                                                   Photo aRChivE
                funds (etfs).                       tion services for DVD and Blu-ray
                     Blackrock’s main busi-         discs, in early 2010.
                ness in Mexico is the ishares
                family of etfs. Blackrock           www.technicolor.com

                offers 133 etfs through the
                Mexican stock exchange’s
                international system of quota-      AUTOMOTIVE
                tions. it also has 12 etfs listed

                                                    Turning Mexico Into A Strategic Hub
                directly on the exchange —six
                Mexican government and
                corporate-bond etfs and six
                Mexican equities etfs, includ-      Nissan Motor, the third largest au-
                ing the ishares naftrac etf         tomaker of Japan, will invest 600
                that tracks the benchmark           million usd to upgrade its plants in
                iPc stock index and is a major      Mexico and kickstart production
                investment vehicle for local        of three new low-cost cars. The
                pension funds.                      company aims to turn Mexico as
                                                    its central hub for supplying its
                www.blackrock.com                   cars to the Americas markets.
                                                         Under the plan, Nissan will
                                                    begin the assembly of its Micra
                                                    compact by early 2011. A sedan
                                                    and a multipurpose vehicle will
                                                    follow next and will be added to
                                                    the lineup by 2013. The new mod-
                                                    els will be assembled at Nissan’s
                                                    plant in Aguascalientes, where
                                                    Tiida compact and three other
                                                    models are currently being man-
                                                                                                 Photo COURTESY OF niSSan mOTOR




                                                    ufactured.
                                                         Nissan plans to produce
                                                    300,000 units of the three new
                                                    models per year in Mexico and
                                                    expects 80% of its production to
Photo aRChivE




                                                    be exported to other markets in
                                                    the Americas.

                                                    www.nissan-global.com
10 Negocios                                                                                             Photos COURTESY OF CEmEx / alFa / aRChivE




  CONSTRUCTION INDUSTRY


  Concrete Business
   CEMEX signed a supply contract with Consorcio Grupo Unidos por
   el Canal, the primary contractor for the construction of the third set
   of locks of the Panama Canal expansion project. The supply contract
   calls for approximately 500 thousand tons of cement.
   The CEMEX contract represents an integral phase of the Canal ex-
   pansion project, which includes two locks, the excavation of access
   channels to the new locks and the widening and deepening of navi-
   gational channels.

   www.cemex.com



                                                                            FOOD


                                                                            Investing To Grow
                                                                            lyncott, a company special-        construction is expected to
                                                                            ized in dairy products, will       start in early 2011. the compa-
                                                                            build a second plant in Queré-     ny’s goal is tripling its installed
                                                                            taro, Mexico, in 2011, with an     capacity by 2012. lyncott’s
                                                                            estimated investment of 40         plant in Querétaro currently
                                                                            million usd. the new 10,000        elaborates 3,500 tons of dairy
                                                                            square meters facilities will be   products per month.
                                                                            located in a 20,000 square
                                                                            meters plot of land in Bernar-     www.lyncott.com.mx

                                                                            do Quintana industrial Park.



                                                                                                               PETROCHEMICAL


                                                                                                               Expanding
                                                                                                               Business
                                                                                                               Through its subsidiary New-
                                                                                                               pek, ALFA has entered into a
                                                                                                               joint venture agreement with
                                                                                                               Pioneer Natural Resources
                                                                                                               and Reliance Eagleford Up-
                                                                                                               stream Holding, to step up the
                                                                                                               development of its natural gas
                                                                                                               business in Texas. According to
                                                                                                               that agreement, Newpek will
                                                                                                               sell 45% of its stake in the Eagle
                                                                                                               Ford Shale, located in Southeast
                                                                                                               Texas, to Reliance, for approxi-
                                                                                                               mately 210 million usd.

                                                                                                               www.alfa.com.mx
                                                                                   briefs.



                                                                          AGROINDUSTRY

                                                                          Mexico’s
                                                                          Agro-Star
                                                                          Red tomatoes have become
                                                                          the main Mexican agricul-
                                                                          ture exports, not only for the
                                                                          amount involved but also for
                                                                          the technological develop-
                                                                          ment that Mexican producers
                                                                          have reached. From Janu-
                                                                          ary to April 2010, exports of
                                                                          the fruit totaled 834 million
                                                                          usd, an annual growth rate

                                                                          of 44.7%. Tomatoes exports
                                                                          exceed the combined for-
                                                                          eign sales of avocados, citrus,
                                                                          mangoes and bananas, which
Photo aRChivE




                                                                          are also success stories of the
                                                                          Mexican agroindustry.

                                                                          www.sagarpa.gob.mx




                AGROINDUSTRY              LOGISTICS


                Spicy                     DHL Expands Its Operational
                Investment                Infrastructure
                With an investment        DHL Supply Chain Mexico
                of more than 180,000      is expanding its logistics
                usd get-Mex will start    services for the Life Sci-
                its development and       ences and Healthcare in-
                consolidation as one of   dustries, totaling an invest-
                the most important hy-    ment of 15 million usd. The
                droponic greenhouses      expansion includes a 9
                producing habanero        million usd investment in
                chili in yucatán. the     a new warehouse unit that
                                                                                                            Photo COURTESY OF dhl




                company expects to        was officially put into ser-
                sell its entire produc-   vice in June 2010, at DHL
                tion in the Us, europe    Supply Chain’s Macrocen-
                and asia.                 ter facility in Mexico City.

                getmex.net                www.dp-dhl.de
12 Negocios                                                                                    Photos COURTESY OF GOvERnmEnT OF ThE STaTE OF mORElOS




Morelos: Outstanding
Investment Opportunities
In A Great Place To Live
The state of Morelos is an attractive place for investment projects,
a fact corroborated by the more than 774 million usd in Foreign
Direct Investment (FDI) captured from October 2006 to date.
More than 683 million of that amount represent investment in the
manufacturing sector, making Morelos the eighth state in terms of
FDI attraction in this sector and placing it among a select group of
states renowned for their industrial vocation.




M
                   any world-class companies es-     solute and second largest per capita concentra-    sites, are complemented by a huge variety
                   tablished contribute to main-     tion of researchers registered in the National     of high-end education, cultural, health and
                   taining investment flow in        Researcher System (SNI), justifying why it is      entertainment options. The atmosphere in
                   Morelos through reinvestment      renowned as “the land of knowledge.”               and around the state capital is now distinctly
projects in their existing facilities, reaffirming       Morelos has an important reserve of high       cosmopolitan. Cuernavaca is internationally re-
their confidence in the state, notably Nissan,       skilled labor with vast experience in manufac-     nowned as “the eternal spring city” and the Unit-
Bridgestone-Firestone, Saint Gobain, Conti-          turing processes, particularly in sectors such     ed Nations Development Programme (UNPD)
nental, Beru, Dr. Reddy’s, Unilever, Sintenovo,      as the chemical-pharmaceutical, automotive-        ranked it eleventh best place to live in Mexico,
Glaxo Smith Kline, Baxter, Burlington, Ge-           auto parts, textile and food and beverage, that    based on the Human Development Index. There
malto, Buckman Laboratories, Uquifa, Skesui          have been an important part of the state’s econ-   is no doubt, the exceptional quality of life in Mo-
S Lec, Ceva-Kemia, Farmasa Schwabe, Givau-           omy for decades.                                   relos and the large number of world-class com-
dan, Clariant, Freudenberg-Nok, Darier, Flo-             But that is not all. The state offers an ex-   panies established in the state make it one of the
tamex, Placosa, Air Design, Industrias Lavín,        ceptional quality of life. An ideal weather, an    best investment options in Mexico. n
Corporación Moctezuma and Lafarge, and the           extraordinarily beautiful natural environment
list keeps on growing.                               and a wide range of Colonial and Pre-Hispanic      www.negociosenmorelos.gob.mx

     This performance has been achieved
thanks to Morelos’ investment advantages and
the steadfast support from the state govern-
ment to enhance them.
     Whereas Morelos’ main production poles
are located in the heart of the Gulf-Pacific in-
ter-oceanic corridor and Cuernavaca, the state
capital, is less than an hour drive from Mexico
City, the state has direct access to both the huge
market that revolves around Mexico City and
export markets through the country’s primary
ports. That gives companies important logisti-
cal advantages and most of Morelos’ foreign
capital firms have considered them.
     One of Morelos’ main strengths is its out-
standing environment for technological inno-
vation. The state’s human capital pool and its
infrastructure for scientific and technological
development is unparalleled in Mexico. With
40 research centers and institutes and 135
laboratories, Morelos has the third largest ab-
                                                                                          mexiCo’s partner foXconn




                                                                                                                                        Photo COURTESY OF FOxCOnn
Foxconn, Like Spring
Water In The Desert
by antonio VÁZQUeZ




                                 W
The world’s largest maker of                         hen Foxconn, the world’s        producing thousands of electronic components
electronic components has                            largest maker of electronic     every day to later be assembled in the plants of
                                                     components and employer         brands such as Apple, Sony, Cisco, HP, Compaq,
invested over 230 million usd
                                                     of over 800,000 people          IBM, Motorola, Nokia and Nintendo, some of
to set up an industrial mega-    around the world, first came to Ciudad Juárez       the company’s main clients.
complex in Ciudad Juárez,        in the north of Mexico, it saw an oasis in the          The Foxconn Complex –located in San
Chihuahua, where it expects to   Mexican desert on the US border.                    Jerónimo, 16 kilometers to the West of Ciudad
employ a workforce comprising        Foxconn decided then that it would set up       Juárez– began operations in February 2009.
                                 an industrial park there, even including a Nan-     It has now 7,000 employees and plans to cre-
up to 20,000 employees.
                                 otechnology Development Center.                     ate as many as 20,000 jobs over the coming
                                     Today, two years after Mexican president        years. In September 2009, the specialist maga-
                                 Felipe Calderón’s visit to China, where he held     zine Expansión reported that it was the only
                                 a meeting with Foxconn CEO Terry Gou, the           manufacturing company in Mexico to have
                                 company with subsidiary operations in Ameri-        such a large workforce in a single location. The
                                 ca, Europe and Asia, has invested over 230 mil-     only other similarly sized operation on record,
                                 lion usd over an area of 240 hectares in the bor-   according to the magazine, was Volkswagen,
                                 der city in the state of Chihuahua. At this loca-   which employs 15,500 people at its plant in the
                                 tion it has created an industrial mega-complex,     city of Puebla in the center of Mexico.
14 Negocios i The Lifestyle                                                                           Photo COURTESY OF FOxCOnn




                              the eXPansion of                                        Vallina was owner of a broad swathe of
                              the Phases 2 and                                     land that Foxconn had visualized for the proj-
                                                                                   ect. The land was procured under the Free
                              3 of foXconn’s
                                                                                   Trade Zone (RFE) program. In practice, this
                              coMPleX inVolVe                                      means a space located to one side of the Mex-
                              the Potential                                        ican Customs’ buildings at San Jerónimo’s (in
                              increase of UP to                                    Chihuahua) border with Santa Teresa (in
                              540 Million Usd                                      New Mexico, US).
                              and the creation                                        The RFE program and the proximity with
                                                                                   the Mexican Customs means that Foxconn
                              of a total of
                                                                                   pays less tax and the procedures for import-
                              20,000 JoBs.                                         ing products into Mexico are simplified.
                                                                                      “The RFE scheme has helped us greatly and
                                                                                   currently no other industrial park on the bor-
                                  “All the stars aligned in March 2008,” says      der has enjoyed that benefit. By using that pro-
                              Foxconn’s Director for Latin America, Francisco      gram, we have been able to import and export
                              Uranga, with a note of satisfaction. According to    products to the US much faster,” says Uranga.
                              Uranga, the plot on which this industrial develop-      In CNN Expansión’s words, the company
                              ment was developed was provided by an individ-       “chose the San Jerónimo border crossing
                              ual owner, Eloy Vallina.                             due to its strategic location. The railway pass-
                                                                                                          mexiCo’s partner foXconn




es through it on its way to the Punta Colonet     The government of the state of Chihuahua           2010, is making good progress. The expan-
port (planned for Ensenada in Baja Califor-       would then commit to facilitating the elec-        sion of the phases 2 and 3 of the manufactur-
nia) and it links to the north in El Paso with    tricity supply connection (completed in June       ing project –under development in 2010– in-
the railway lines operated by the two main        2009), providing water supply, paving the          volve the potential increase of up to 540 mil-
US companies, Union Pacific Southern Pa-          dirt road to the complex; and creating a di-       lion usd and the creation of a total of 20,000
cific (UPSP) and Burlington Northern Santa        rect road to the interior customs house. As        jobs. The upcoming project is the construc-
Fe (BNSF). And, just ten minutes from the         a final measure, the government authorities        tion of the fourth industrial building (at a cost
border is the international airport of Santa      resolved legal issues and Foxconn invested a       of 35 million usd) and will create some 2,500
Teresa (New Mexico, in the US) and eleven         further portion of resources until it had in-      jobs.
kilometers to the east is Anapra, one of the      vested a total of 230 million usd, according to        Other projects to be built as part of the
most marginalized towns in the municipality       Uranga.                                            Foxconn Complex include a solar energy
of Ciudad Juárez and also the main provider             “We worked closely with the three levels     park and a Nanotechnology Research Cen-
of labor for the San Jerónimo plant.”             of government in Mexico to create pack-            ter –involving an investment of around 460
    Therefore, in August 2008, the construc-      ages of incentives and speed up the licensing      million usd.
tion of the first phase of the industrial com-    process and other requirements. One very
plex began. The project would be developed        important incentive was the power supply.          The Advantage of being foxconn
in three phases, four industrial buildings at a   Given that one of the networks that intercon-          According to Francisco Uranga, on an
time, describes Francisco Uranga.                 nects the US and Mexico is five kilometers to      average day at the Foxconn complex, up to
    The company’s initial investment, accord-     the east, a substation was built to the right      50,000 units of one of their electronic com-
ing to Foxconn’s CEO, was for 185 million usd.    along the border to supply our plant. This         ponents are produced.
                                                  guarantees that if the electrical supply goes          Computers, laptops, servers, and video-
                                                  down in Mexico, we automatically receive a         games all bear the hallmark of Foxconn. A
                                                  supply from the US,” he says.                      laptop computer made by Foxconn is not the
                                                        The businessman, a graduate from the         same as you would find in any department
                                                  University of Texas in El Paso, mentions that      store.
                                                  the infrastructure meant that improvements             The advantage, according to Uranga, is
                                                  could be made in an area in which the poor         that clients can request a computer to suit
                                                  security situation was factor. The lighting        their needs.
                                                  on the roads and dirt roads has given peo-             “Our products go to markets in Canada,
                                                  ple more confidence to use this route that         the US and Mexico. But they will never be
                                                  goes from Anapra (one of the most densely          the same because we do not mass-produce
                                                  populated regions of Ciudad Juárez, with           the same model. If you place an order, you
                                                  approximately 400,000 inhabitants) to San          can be sure that there will only be another
                                                  Jerónimo. In fact it was one of the precondi-      8 similar units in the world,” explains the ex-
                                                  tions that Foxconn requested the Mexican           ecutive of the electronic’s company.
                                                  government before setting up the plant.                Even when the company works for oth-
                                                        “Security is one of the key issues for our   er brands such as Dell, which usually sells
                                                  investors. We have a close working relation-       mass-produced laptops, these are produced
                                                  ship and communication with the three lev-         in plants such as the one in China, explained
                                                  els of government as well as with the armed        Uranga last May to the local newspaper El
                                                  forces and we have developed special pro-          Paso Inc.
                                                  grams with them,” confirmed Uranga. “With              The fact that the Foxconn Complex in San
                                                  safe access routes we have contributed to          Jerónimo takes utmost care of its produc-
                                                  guaranteeing the security of the entire area       tion is due to the company’s interest in hiring
                                                  [...] as the complex is located near the border    employees with a minimum education level,
                                                  between the US and Mexico, we can take             equivalent to a secondary education in the
                                                  advantage of the additional security on both       US.
                                                  sides. We have personnel from Asia and the             The newspaper also reported that almost
                                                  US coming to work with us and we have not          half of the employees at Foxconn’s offices in
                                                  had to implement measures to prevent for-          San Jerónimo have a university-level degree
                                                  eigners coming to work at our plant since we       and 5% of the workforce has a post-graduate
                                                  began operations.”                                 qualification. n
                                                        This has meant that the first phase of the
                                                  industrial development, planned for March          www.foxconn.com
16 Negocios                                                                                                                       illustration aRChivE




 Foreign Investment
 In The Bicentennial
 by MarÍa cristina rosas *


 throUghoUt its history, MeXico has Been an attractiVe destination for fdi,
 Which has continUed to groW steadily. today, a Wide range of attractions
 has Made of MeXico a Preferred destination for inVestors and coMPanies
 seeKing to eXPand their BUsinesses and strengthen their Presence in the
 aMericas.

 Historically, the importance of Foreign Direct     country of destination and that is what distin-   is the identification by the foreign investor, and
 Investment (FDI) has been in debate. Those         guishes FDI from Indirect Foreign Investment,     company, of its comparative advantages over
 who believe it might be counterproductive          which is usually of short duration, failing to    existing firms in the country of destination.
 for an economy argue that FDI encourages           maintain a commitment but only when the           Another point is that it should be more appeal-
 capital flight, enables the creation of enclave    conditions of the place or country where it op-   ing for the investor to operate directly in the
 economies divorced from the domestic mar-          erates, are “attractive.”                         target market than to surrender its operations
 ket and displaces national investment, inhib-          Thus, FDI operates in the form of interna-    to third parties. Finally, the country of destina-
 iting domestic savings. It is also said that FDI   tional capital flows by which an enterprise of    tion must be attractive because of its location.
 generates greater dependence of countries          one country creates or expands a branch in            Throughout its history, Mexico has been
 on the global economy and place local firms        another nation. In that regard, transnational     an attractive destination for FDI, which has
 against foreign corporations.                      corporations are the principal means for car-     continued to grow steadily. But the increase in
      On the other hand, those who stand up         rying out FDI. The growth shown by the inter-     FDI in the country in recent years is explained
 for FDI argue that it promotes economic            national economy in recent decades explains,      largely by a series of economic reforms un-
 growth by increasing productivity, favoring        in large measure, the growth and importance       dertaken since the 80s. During the past two
 the creation of new jobs and fostering tech-       of transnational corporations and FDI in the      decades, Mexico has subscribed Free Trade
 nology transfer between partners. It is also       contemporary world.                               Agreements (FTAs) with major markets in the
 noted that thanks to countries’ flexibility to         There are several approaches to explain       world and with almost all of the Latin Ameri-
 attract FDI, capital flows and that helps a        how FDI operates. One is that investors wish      can nations, in which chapters regarding in-
 nation to integrate into the global economy.       to exploit the comparative advantages offered     vestment have been included. The country has
 It is alleged that the financing of investment     by the host country. That could be made in        also signed numerous bilateral agreements
 through the establishment or expansion of          other ways, such as the sale of licenses or the   for the protection of investments, which, com-
 foreign firms in a given territory promotes        establishment of a partnership with a foreign     bined with FTAs, offer legal certainty for inves-
 competition and raises added value, which          company. However, those means represent           tors and have helped to consolidate Mexico
 induces a higher skilled labor force and           transaction costs and it will always be more      as a trustworthy partner. Furthermore, inter-
 stimulates job generation.                         beneficial for a corporation to directly access   national agreements have helped Mexico to
      Whether in favor or not, the fact is that     the comparative advantages of the recipient       improve its competitiveness, so that Mexican
 FDI flows across borders facilitate business       country, instead of disposing its operations to   products sold in its partners’ markets meet in-
 transactions. FDI reflects a company’s goal        third parties.                                    ternational quality standards.
 of obtaining a lasting interest in another             That is important to mention because it           FDI in Mexico is aimed mainly at second-
 economy. That implies a long term relation-        helps to understand the requirements that         ary and tertiary sectors of the economy and is
 ship between the investor company and the          must exist for FDI to occur. First and foremost   closely linked to export.
                                                                                                                                     business tips




    In order to regulate FDI specifically, in 1993   least, has trained manpower in various sectors       with plans to create new vehicles and as-
the Mexican government enacted the Foreign           of the economy, at very competitive costs com-       sembly plants with investments of 600 and
Investment Law, which established the regu-          pared with other nations, like China, where the      550 million respectively, can be found. In
latory framework for the operation of foreign        appreciation of the Yuan is making production        the second case, companies like Best Buy
companies in the country. That law and the re-       processes more expensive.                            and Lowe’s are examples of companies that
forms that have been made to it in subsequent            That explains the behavior of FDI in Mex-        are betting on the Mexican market and its
years have allowed greater foreign capital in-       ico recently. It is estimated that in 2010 the       growing market.
flows to Mexico. Since 1993, FDI in Mexico has       country will receive between 18 billion and 22           The stability of the peso exchange rate
grown at an average annual rate of 12%. Con-         billion usd of FDI. We must not lose sight that      is also a factor to weigh. Despite the vaga-
sidering the participation of the different eco-     this is a very lucky amount, considering the         ries of the international economy in gen-
nomic activities in the National Gross Domes-        recent global economic downturn, which had           eral and the US economy in particular,
tic Product, foreign capital may be present in       negative effects on international capital flows.     Mexico’s macroeconomic stability has been
85% to 90% of Mexican productive activities.         In 2010, Mexico was included again among the         maintained. Whereas the US economy is
    There is another fact that has benefited         top 10 recipients of FDI worldwide, according        overcoming the recession, FDI growth in
Mexico as a destination for FDI. The proximity       to A. T. Kearney, which bases its score on a         Mexico might be expected. With increasing
to the US, the fact that both countries share the    research/survey of about 1,000 multinational         investment by US companies in the coun-
same time zone and the ease of communica-            companies of global importance.                      try, a renewed interest from investors from
tion and transportation between US and Mexi-             There is currently a long list of foreign com-   other countries seeking to take advantage of
can cities has resulted in lower business costs.     panies already established in Mexico that are        Mexico’s attractive platform for doing busi-
    It has long been said that low labor cost        making significant investments, in addition to       ness, both in its domestic market and in the
countries are those that attract the bulk of         new companies that have decided to start op-         Americas, can be predicted. n
FDI. However, if true, Haiti and Central Afri-       erations in the country.
can countries would be the largest recipients            In the first case, examples like Walmart,        *Professor and researcher in the Political and
of FDI worldwide. Also, cheap labor is associ-       which announced the opening of 300 new               Social Sciences Faculty, National Autonomous
ated with low value added products, which,           stores in the country throughout this year,          University of Mexico (UNAM).
although they still have large markets, are not      with an estimated investment of 1 billion usd,
the only products of interest for con-               and automakers like Nissan and Chrysler,
temporary consumers, particularly in
developed countries. In that sense,
a country’s location gives it an ad-
ditional attraction. Foreign inves-
tors will definitely seek a country
located close to a major consumer
market. Mexico meets that
condition and, last but not




                                                                                                           throUghoUt its history,
                                                                                                           MeXico has Been an
                                                                                                           attractiVe destination
                                                                                                           for fdi. it is estiMated
                                                                                                           that in 2010 the
                                                                                                           coUntry Will receiVe
                                                                                                           BetWeen 18 Billion and
                                                                                                           22 Billion Usd of fdi.
18 Negocios                                                                                      Photos aRChivE




              Trade –
              reflecting
              History
              by Ulises hernÁndeZ



              From Mexico’s Independence                          won its independence from Spain, during
              to the Reform, from                                 which it has suffered from internal divisions,
                                                                  foreign invasions and a Revolution– the coun-
              the Porfiriato era to the
                                                                  try has gradually progressed toward moder-
              Revolution, from the oil                            nity and globalization.
              boom to NAFTA, Mexico’s                                 Mexico changed from being a Span-
              bilateral trade relations have                      ish colony in the New World that basically
              undergone major changes                             exported silver to the kingdom of Spain at
                                                                  the start of the 19th century, to being an in-
              and have witnessed to the                           dependent country with trade agreements
              country’s historical evolution.                     with over 40 countries around the world and
                                                                  various exports totaling 230 billion usd at the




              H
                            ow much can a country change          beginning of the 21st century (in 2009).
                            in 200 years? Two centuries can           This transformation has taken place at
                            seem like a short time if one con-    varying rates and speeds: periods of geo-
                            siders the various countries with     graphical isolation and communications de-
              millenary histories such as some Asian and          velopment, of being a closed economy and
              European civilizations.                             being open to trade and foreign investment.
                  In Mexico’s case, the past 200 years have           The transformation has also been quali-
              brought about major changes in almost every         tative. Exports no longer consist purely
              sphere: in politics, in the economy and in soci-    of commodities and agricultural produce.
              ety. But one of the most important transforma-      Since the end of the 1980s, the country has
              tions has been in its trade with other countries.   been exporting manufactured products of
                  In this regard, there has been a 360-degree     much higher value, such as electronic de-
              turn. In 200 years –the period since Mexico         vices and cars.
                                                                                             report MeXico’s international trade




                                                                                                          the top 15
    “Of the 141 billion usd of Mexican exports           During the first five decades of indepen-        mexican exports are increasingly
registered during the first quarter of 2010,         dence from Spain (1820-1870), Mexico under-          diversified. latin american
around 115 billion –or 81.5%– were created           went one of the most violent and difficult pe-       markets like Colombia and Brazil
through the sales of manufactured products,”         riods in its history. Fierce struggles between       have gained importance in the
says Fernando Ruiz Huarte, technical direc-          liberals and conservatives plunged the coun-         last years, surpassing even China
tor of the private sector’s Mexican Foreign          try into a series of political conflicts. That led   and Japan. in 2009 the main
Trade Council (COMCE). “That is largely due          to the Wars of Secession (separation of Texas)       markets for mexican exports
to the North American Free Trade Agreement           and the civil wars (Reform War), and foreign         were:
(NAFTA),” he adds.                                   invasions were fought off (the Mexican-Amer-
    The US is now Mexico’s largest trade part-       ican War and the Franco-Mexican War).                      Country
ner, representing 84% of the value of Mexico’s           As a result, during a large part of the 19th
exports, followed by its trade relationships with    century, Mexico faced a break in its incipient        01   US
Canada and Germany. In terms of imports,             trade relations with various European coun-
                                                                                                           02   Canada
the relationship with the US is also the most        tries. However, toward the end of the same
relevant, but in recent years the significance       century, Mexico renewed trade with Europe,            03   Germany
of imports from China, Japan and Korea has           such as with Great Britain after its Indus-
increased, ranking second, third and fourth          trial Revolution, and, to a lesser extent, with      04    Colombia
respectively.                                        France. In the 1870s, it began to trade with
                                                                                                           05   Brazil
    The following is a brief account of the evolu-   Germany, shortly after that European coun-
tion of Mexico’s most important bilateral rela-      try was formed.                                      06    Spain
tionships over its history.                              Each of these three countries had a special
                                                     interest in maintaining a trade relationship          07   China
Links to Europe                                      with Mexico. “Since the independence of the          08    Japan
For almost three centuries as a Spanish col-         Ibero-American colonies, the vacuum left
ony (1521-1821), Mexico –known then as New           by Spain had been fought over by the three           09    netherlands
Spain– had a preferential trade relationship         major trading powers of the time, so that it is
with the kingdom of Spain. “As a dependent           unsurprising that they would strive to acquire
                                                                                                           10   venezuela
colony of the crown, it was obliged to trade ex-     a major stake in Mexico’s external trade,” in-
                                                                                                           11   UK
clusively with Spain,” explains Paolo Riguzzi,       dicates Sandra Kuntz, economic historian
economic historian of Mexico and researcher          and researcher at El Colegio de México, in her        12   Guatemala
at El Colegio Mexiquense (CMQ).                      book El comercio exterior de México en la era
    New Spain’s trade was mainly based on            del capitalismo liberal (1870-1929) (Mexico’s         13   argentina
the export of silver. This precious metal was        foreign trade in the era of liberal capitalism
                                                                                                           14   Chile
practically the only Mexican product to be ex-       [1870-1929]).
ported in large quantities, initially in the form        In those days sea transport was the back-         15   Peru
of coins and then in bars.                           bone of Mexican trade and silver represented
    This mono-exporter trade system lasted           two thirds of the value of Mexican exports.          source: ministry   of   economy
for many years, even after Mexico achieved
independence from Spain in 1821. “For sev-
eral decades after Independence, Mexico was
a very weak exporter,” says Riguzzi.
    During the colonial period, there was also
a major trade relationship with the Far East.
Mexican silver was exported to China, using
the ships and ports controlled by the Spanish
empire. That was the era of the famous Nao
de China, when Spanish galleons departed
                                                                                                                                              Photo OmaR SanTamaRÍa




from the port of Acapulco and headed for the
China coasts via the Philippines.
    For a number of years, New Spain import-
ed luxury products such as silk and spices
from China and India, in exchange for silver.
However that connection was lost some years
after Independence, adds the historian.
20 Negocios                                                                                             Photos aRChivE




                                                                           However, that isolation ended from the 1880s
                                                                       with the laying down of the trunk railways that
                                                                       linked the center of Mexico with its northern re-
                                                                       gion, under the rule of Porfirio Díaz.
                                                                           In 1884, the railway line running between
                                                                       Mexico City and Ciudad Juárez in Chihuahua
                                                                       was completed and four years later, in 1888, the
                                                                       route between Mexico City and Nuevo Laredo
                                                                       in Tamaulipas was finished too. Both were bor-
                                                                       der cities and gave access to the trunk railway
                                                                       lines in the US.
                                                                           That marked the beginning of the US’ pre-
                                                                       dominance as Mexico’s foreign trading partner.
                                                                       “The US became the main market for Mexican
                                                                       exports and that has not changed since then,”
                                                                       adds Riguzzi.
                                                                           Over the following six decades (1870-1930),
                                                                       Mexican exports began to diversify. Silver was
                                                                       no longer the only product to be exported in
                                                                       great quantity. The mines in Sonora, Chihua-
                                                                       hua and Coahuila, mainly licensed to US and
                                                                       English firms, began to export industrial and
                                                                       other types of metal, initially copper and lead
                                                                       and then zinc and gold.
                                                                           The country also exported agricultural
                                                                       products such as hides and skins, natural dyes
                                                                       such as cochineal, and natural fibers such as
                                                                       henequen from the Yucatán peninsular and
                                                                       cotton from Baja California, the Lagunera
                                                                       county and Tamaulipas. That pattern of ex-
                                                                       ports continued up until the first 30 or so years
                                                                       of the 20th century.
                                                                           Mexican sea trade faced some temporary
                                                                       interruptions during the Revolution (1910-
                                                                       1917). However, according to Kuntz, “none
                                                                       had lasting consequences on Mexico’s inter-
                                                                       national trade.”

oVer the Past        The Railways: the Driving Force                   Replacing Imports
17 years, the        Behind Trade with the US                          and Opening for Trade
                     Toward the last 30 years of the 19th century,     The start of World War II at the end of the
total aMoUnt of
                     Mexico’s trade relationships had turned to-       1930s opened a window of opportunity for
MeXico’s eXPorts                                                       Mexico’s trade and industrialization.
                     ward Europe once again, but soon the US
has risen froM 52    would begin to enter on the scene and later be-       During the seven years of the war (1939-
Billion to alMost    come Mexico’s largest trade partner.              1945), European countries stopped exporting
230 Billion Usd,         Despite being neighbors, Mexico had not       and the US began focusing on producing mili-
While iMPorts        had an intense trade relationship with the US     tary goods. Mexico, meanwhile, took advantage
                     for most of the 19th century. An enormous des-    of the situation to export manufactured prod-
haVe increased
                     ert separated both countries and there was no     ucts such as textiles and uniforms, food and
froM 65 Billion to   means of transport to close that gap. Further-    drink and raw materials such as iron ore.
234 Billion Usd.     more, most of the west of the US remained un-         During the 1930s, with the inauguration
                     developed as it had yet to be colonized.          of the Panamerican Highway, foreign trade
                         “Mexico and the US were geographic but        was given the option of using road freight.
                     not economic neighbors,” states Riguzzi.          Over time and with the development of other
                                                                                           report MeXico’s international trade




highway programs, that transport alternative                                                            has a major pharmaceutical and chemical in-
gained increasing relevance, until it overtook      on the occasion                                     dustry, among many other high value-added
the railways in terms of volume of freight at the   of MeXico’s 200th                                   industries.
end of the 20th century.                            Birthday, its                                          “For the first time in history, Mexican ex-
    Twenty years later, during the 1950s, Mex-      foreign trade                                       ports are no longer predominantly related to
ico entered a phase of industrialization based                                                          agriculture, livestock or minerals. For the first
                                                    is More Varied,
on the model of substituting imports. It raised                                                         time, it is exporting industrialized products
its customs duties, isolating the Mexican           stronger and                                        with a higher added-value,” concludes Riguzzi.
economy in relation to the rest of the world.       More ProdUctiVe
Foreign trade decreased in importance in the        than eVer Before.                                   New Trade Partners
country’s Gross Domestic Product (GDP).                                                                 Currently, the US continues to be the larg-
    That model lasted for 25 years until the                                                            est purchaser of Mexican products (185 bil-
mid-1970s when large oil reserves were found        signed a series of bilateral and regional trade     lion usd), followed by Canada (8.4 billion usd)
in the Gulf of Mexico. “The decision to substi-     agreements, reaching a total of 49 trade part-      and Germany (3.2 billion usd). Surprisingly,
tute imports was reversed due to the petro-         ners.                                               in fourth and fifth place are Colombia (2.5
lization of the economy,” indicates Riguzzi.            Over the past 17 years (1993-2009), the total   billion usd) and Brazil (2.45 billionusd), sur-
“That was the decade of the 20th century            amount of Mexico’s exports have risen from 52       passing historic trade partners such as Spain
when Mexico became a major oil exporter.”           billion to almost 230 billion usd (an increase of   (2.39 billion usd) and the UK (1.25 billion usd).
    By 1982, the model of substituting imports      343%), while imports have increased from 65             In terms of imports, Mexico mostly sourc-
had run its course and the exports of crude oil     billion to 234 billion usd, according to figures    es from the US but increasingly now from
dominated all others. As had occurred with          released by the Ministry of Economy.                Asia: China, Japan and the Asian Tiger econ-
silver many years before, during the 1980s              Due to that trade liberalization and NAF-       omies now provide a quarter of Mexico’s im-
crude oil accounted for around 80% of the           TA, Mexico’s exports have completely revo-          ports of supplies, products and goods.
value of Mexican exports.                           lutionized in the past 24 years. “Until the 70s         While 51% of Mexico’s imports come
    At that point, the Mexican government de-       and 80s, Mexican foreign trade was consid-          from the US, 13.8% come from China, 7.3%
cided it was time to diversify its exports and      ered as a mono-exporter model due to oil,”          from Korea, Taiwan, Hong Kong and Singa-
start out on a policy of becoming open to trade     says Ruiz Huarte of COMCE, “but today the           pore, and 4.8% from Japan. In total, 25.9% of
and liberalizing investment.                        relationship has inverted and manufacturing         Mexico’s imports now come from the Asia-
    In 1986, Mexico joined the General Agree-       companies represent just over 80% of our            Pacific region.
ment on Tariffs and Trade (GATT), the mul-          exports.”                                               China has become Mexico’s second largest
tilateral treaty which evolved in what we               Mexico now has the world’s tenth-largest        provider, overtaking Japan. Korea is now in
know today as the World Trade Organization          automotive industry, with a production of 1.5       fifth place, ahead of Germany, and Brazil is now
(WTO). Eight years later, in 1994, the North        million vehicles in 2009, as well as a healthy      in eighth position, ahead of Spain.
American Free Trade Agreement (NAFTA)               electronics industry in which the major Jap-            The change has been staggering. On the oc-
entered into force between Mexico, the US           anese and Korean firms are involved, and            casion of Mexico’s 200th birthday, its foreign
and Canada. That caused a surge in exports          huge contractors from China and Singapore           trade is more varied, stronger and more pro-
and imports. Over the following years, Mexico       such as Foxconn and Flextronics. Mexico also        ductive than ever before. n


                                growing exports
      mexican total exports have grown more than 300% in the last 16 years.

                            mexiCan                   mexiCan
 seleCted                   exports in 1993           exports in 2009
 Countries                  (million usd)             (million usd)                  growth

  US                              42,850.90                  193,253.70                      351%
  UK                                  201.70                   1,254.20                     522%
  Spain                               917.70                   2,392.90                      161%
  France                             456.20                      500.80                       10%
  China                               44.80                     2,215.60                  4,846%
   mexiCan
   total                          51,832.00                229,620.20                       343%
   exports
                                                                        Source: ministry of Economy
22 Negocios




               Centennial
               Companies
                 Writing
                 History
                in Mexico

              For two centuries, Mexico has been home to leading
              companies in different sectors. Some of them have
              been part of the most interesting chapters of Mexico’s
              economic history. Many of them do not exist anymore,
              yet they contributed to the country’s development and
              growth.
              In September 2010, Mexico celebrates 200 years of
              Independence and Negocios wants to make a tribute to
              those companies that have protagonized and witnessed
              the most important moments of the country’s modern
              economic history.
              The following are just some of the dozens of companies
              that have been operating in Mexico for the last 100
              years or more.
Photos COURTESY OF ERiCSSOn




                              Ericsson: Changing
                              The Face Of Communications
                              In 1904, Ericsson won a concession to operate a telephone
                              network in Mexico City and outlying areas. Since then the
                              company has been present in the Mexican telecom industry.
                              Today, it is the leading provider of technology and services to
                              telecom operators in the country.




                              I
                                    n today’s world, making a phone call           With the government taking an active         systems to Ecuador, Costa Rica, El Salvador
                                    may seem one of the simplest tasks. But    role in the industry, it was considered best     and Panama.
                                    behind the ease with which we com-         to transfer Telmex to Mexican interests. This        In 1989, the first AMPS (Advanced Mo-
                                    municate today, there is a long history    took place. Telmex was eventually taken over     bile Phone System) was installed in Mexico
                              of work and technological advances. In Mexi-     by the state.                                    with Ericsson as the supplier. When the
                              co that story was written largely by Ericsson.       Ericsson decided to invest in manufac-       liberalization of both the fixed and wireless
                                  Ericsson first came to the country in        turing in Mexico. In 1958, Ericsson founded      telecom market in Mexico in 1997, the num-
                              1904, when it won a concession to operate        a manufacturing and industrial company in        ber of subscribers increased rapidly.
                              a telephone network in Mexico City. Three        Mexico and became an equipment provider..            In 2001, Ericcson supplied and developed
                              years later, the company put into operation      In 1964, Ericsson installed Teleindustria        the first GSM/GPRS network.
                              the first central battery telephone network      Ericsson (TIM), the first industrial plant in        By the turn of the century, Ericsson had
                              in the country. Since then, Ericsson has been    Mexico producing telecommunication sys-          a market share of 55% for local calls and
                              part of the history of telecommunications in     tems.                                            90% for long distance calls. Its market share
                              Mexico.                                              The launch of the AXE system (the mean-      in mobile telephony was 64%. The number
                                  In 1926, Ericsson added to its network       ing of the designation AXE is not completely     of Ericsson employees in the country was
                              the first automatic telephone central in the     clear, but most sources agree that Automatic     1,200.
                              country and six years later all of the local     experimental Electronic switch is the most           Today, the company is the leading pro-
                              centrals in its network were automated.          likely interpretation) was the start of a suc-   vider of technology and services to telecom
                                  In 1947, the company participated in the     cessful period for TIM in the 1980s. The         operators in Mexico and the market leader
                              creation of Teléfonos de Mexico (Telmex).        Telmex network was digitalized at an early       in 2G, 3G and 4G mobile technology. n
                              By the late 1950s, Telmex’s national network     stage, and Ericsson’s system was the market
                              had about 400,000 subscribers.                   leader. TIM also successfully exported AXE       www.ericsson.com
24 Negocios i The Lifestyle                                 Photos COURTESY OF viTRO




     Vitro: 100 Years
     Melting Gentleness
     And Resistance
     Glass was created by man from natural
     substances. It is a delicate yet resistant material.
     Vitro is a Mexican company that embodies these
     features. Its production is vast: from invulnerable
     reinforced glass to exquisite glasses, cups and
     wine bottles. Glass was discovered by mere
     chance centuries ago. Vitro however has more
     than 100 years without leaving anything to chance.
                                                                                                                     vidriera monterrey was founded in 1909.




O
               n January 19th 2009, one day be-
               fore US President Barack Obama
               took office, his wife Michelle of-
               fered a cocktail party to celebrate
his arrival to the White House.
     That evening, the guests of the man who
would become the 44th President of the US,
drank the most outstanding vintages of Coo-
per’s Hawk, one of the best wines produced in
Illinois, the state represented by Obama in the
US Senate.
     Far away from that exclusive gathering, a
Mexican company was also celebrating and in
a way also enjoying that pre-presidential toast
taking place in the Hotel Renaissance in Wash-
ington D.C. Because for years now, the Vitro
company –headquartered in Monterrey, Nue-
vo León– is none other than the proud manu-
facturer of the elegant bottles that contain the
wines produced by Cooper’s Hawk.

Glasses become better as Time Goes by
If today it has landed on the US Presidential table   Vitro has KePt itself                               visionary and brave. In 1931 the company be-
that has made history, it is because the Vitro                                                            gan exporting to countries in Central America,
                                                      BUsy By eXPloiting
company also has its own and relentless history:                                                          thus leaving behind its local development stage.
more than 100 years of experience back this com-      to the fUllest                                      Vidriera Monterrey became Vidriera México,
pany that under the name of Vidriera Monterrey        the ProPerties of                                   and in 1936, under the name of Fomento de
started producing bottles to hold the products of     its Main ProdUct:                                   Industria y Comercio (FIC, for its acronym in
Cervecería Cuauhtémoc Moctezuma.                      froM delicately                                     Spanish meaning Promotion of Industry and
     When it was founded in 1909, the company         elaBorated cUlt                                     Trade), was officially born what we know today
was still a newcomer to the sector. Neverthe-                                                             as “Vitro,” a business group with various sub-
                                                      and art oBJects to
less, it already possessed two of the first and                                                           sidiary companies dedicated to the glass and
rarest automatic glass forming machines that          Materials for VarioUs                               crystal industry.
existed in the world.                                 indUstries.
     Only a year later, the coming of the Mexican                                                         A Delicate, Malleable
Revolution forced it –like most of the country’s      not only returned to the country’s economic         and resistant Company
industries– to suspend operations during the          and productive front stage, but also that year it       Strong and fragile alike, glass is an inorganic,
course of the conflict.                               allowed itself to pay its shareholders a 6% divi-   transparent and amorphous solid material that
     But unlike other companies, for Vitro this       dend on its share capital.                          is obtained through a fusion process merging
was but a parenthesis that preceded a series              During the following years, the owners of       quartz sand, sodium carbonate and limestone
of successes. By 1918, Vidriera Monterrey had         the company continued to show that they were        at temperatures of 1,500 degrees Celsius.
26 Negocios                                                                                                        Photos COURTESY OF viTRO




    Historians mention that the substance
was discovered by a sheer and fortunate coin-
cidence. Be that as it may, what is true is that
since its original discovery –near the year
5,000 BC– until now, life is practically unimagi-
nable without the existence of glass and crystal.
    Of all the centuries in which mankind has
given hundreds of uses and purposes to glass
and crystal, Vitro now has one major asset.
The company has kept itself busy by exploiting
to the fullest the properties and benefits of its
main product: from delicately elaborated cult
and art objects to materials for various indus-
tries.
    Currently Vitro runs five specialized design
centers and, during its long development in the
market, it had to have its own machinery pro-
ducing plant. FAMA (Fabricación de Máquinas,
Machine Manufacturer) was created by the
group in 1943 due to machinery and equip-
                                                             vitro started producing glass bottles with an oven
ment supply shortages during World War II.                    and two Owens machines, the first ones introduced
                                                                                                 to the country.
Nowadays, this Vitro subsidiary has its own his-
tory, running parallel to the economic growth
of the Monterrey company and of the country.

A Company With a friendly                              The moves in upper management un-
and Almost indestructible Nature                    dertaken in April 2010, made clear that the
    The life expectancy of products made out of     sensitive productive machine developed by
glass can be very long, provided that they are      Vitro hadn’t broken down, as was suggested
handled with great care. The same fate of “deli-    by some business rumors at the time. It’s no
cate fortitude” has followed the Vitro company      coincidence that one of its most successful
throughout its over 100 years of existence.         products is its reinforced glass.
    In recent years, indirectly hit by the losses      Blending strength and sensitivity, it seems
in the market of by-products, its shares in the     that the company can expect more toasts to
stock market have suffered some losses. Never-      come, many exquisite bottles and cups to be
theless, in 2010 the company received a blast of    made, many products that will have to hard-
fresh air thanks to businessman Alfredo Harp        en to the high temperatures of the current
Helú, who bought a larger stake in the compa-       economy. But therein lays Vitro’s strength. n
ny, up to 15%, from the Sada family, the original
owners of Vitro.                                    www.vitro.com
   manufaCturing proCess in Urrea’s
   mechanichal tool production plant.




                                                                                                                                                                Photo COURTESY OF GRUPO URREa
  Grupo Urrea:
  A Company
  With an Iron Soul
There are two objects that will                         Alberto Aguilar, Mexican columnist spe-          strated that, very much like its tools, its strategy
never go out of fashion: bathroom                   cializing in economy, tells how the first order to   would resist the changes and demands called
furniture and tools. That fact, and                 William B. Carroll’s business was made out the       for by the global economy.
                                                    day her daughter Concepción was born. Years              In 1999 Surtek was born, the group’s divi-
the quality of its products have                    later, and with 17 employees under his com-          sion in charge of manufacturing tools for the
helped Grupo Urrea                                  mand, the heiress’ husband, Raúl Urrea Avilés,       construction, agriculture, gardening and me-
–headquartered in Guadalajara,                      consolidated the company, which he renamed           chanical segments.
Mexico– remain as market                            in 1942 Fábrica de Válvulas (Valve Factory). A           In 2006, Urrea purchased the historical
leader for over a hundred years.                    visionary, Raúl Urrea started to establish stra-     brand Lock, the first lock hardware factory
                                                    tegic partnerships like the one he set up with       in Mexico.




W
                    hat at first was founded in     the hydraulic industry’s Northern Indiana                In the last couple of years, Grupo Urrea
                    1907 as a bathroom furni-       Brass Company, which remained in effect until        has established partnerships with Mayhew
                    ture and imported faucets       the end of the 1980s.                                Tools, for striking tools; with Kirchoff, for
                    store, Válvulas Carroll (Car-       Before that, in 1963 he started operating the    screwdrivers, and with Stanza for designer
roll Valves), run by William B. Carroll, is today   commercial division named “Solución total en         bathroom furniture and accessories.
one of the most important companies in Latin        herramientas” (Total Solutions for Tools) –as            A hundred years fly by, but it takes deter-
America. Four manufacturing plants, 3,000           active today as 50 years ago– as well as “Dando      mination to survive. Today, Grupo Urrea is
employees, an average annual production of          vida al agua” (Giving life to water), while the      run by the Urrea Carroll family. It is the largest
13,000 articles –anything from industrial me-       third Urrea generation was taking charge of          Latin American manufacturer of hand tools
chanical wrenches to bolts, along with bath-        the company. In 1984 Urrea was born as a com-        forged in microalloy steel, and distributes its
room furniture and faucets, all under six brand     mercial brand for tools.                             products in 15 countries, even in the US. n
names– are some of the facts that show Grupo            From the mid-1990s on, when the fourth
Urrea’s successs.                                   Urrea generation took over, the group demon-         www.urrea.com
28 Negocios                                                                                             Photos COURTESY OF GRUPO GRiSi




Grisi: The Ointment From
Which A Pharmaceutical
Company Was Born

                                   I
In 1863 the medication                   t is not an overstatement to say that most         Globalization of the economy began knock-
named Emplasto Monopolis                 Mexicans have had at home and on their         ing on the doors of history and Grisi swung
                                         skin a Grisi product at one time or another.   them wide open. Since 1993 it has had a repre-
(Monopolis Poultice) left
                                         The story of Grisi started out in a simple     sentation agreement with the company Helene
Mexicans speechless, while         manner, in a laboratory on Medina Street, in         Curtis of Chicago. In 1998 it signed a licensing
their skins talked wonders         Mexico City, where only the poultice was pro-        agreement with Procter & Gamble, which in-
of this product. Nobody ever       duced. Later, other products were developed          cluded the brands Max Factor, Cover Girl and
imagined that an ointment          –products that helped fight ailments and en-         Oil of Olay. At the same time it began export-
                                   hance beauty for the citizens of that epoch.         ing its products to Spain and other countries in
created by Italian José Grisi
                                   With them, in 1890 Blas Grisi, son of José, es-      Europe. In 1999 Grisi and Combe International
–and that is still used to treat   tablished the drugstore El Factor which in 1912      signed an agreement in order to sell beauty
skin infections– would give        became the Droguería Grisi. In 1915 the pharma-      products as well as personal hygiene products
birth to a company, Grisi,         cy began exporting its products to the US, Cuba      for women and men. Other partnerships in-
that 147 years later grows         and Guatemala.                                       clude Sara Lee, Dr. Scholl’s and More Pharma.
                                       In 1950 Grisi Laboratories pioneered the pro-        Today, the company exports to Germany,
younger every year.                duction of Mexican shampoos, when it created         Bolivia, South Korea, Costa Rica, Spain, the US,
                                   its chamomile-based and Organogal shampoos           Guatemala, Honduras, Nicaragua, Panama,
                                   to keep bright and dark hair colors, respectively.   Peru, Portugal, Puerto Rico and the Dominican
                                   In 1984 it began selling its jojoba and aloe-based   Republic.
                                   products.                                                And to think that all that started with a
                                       Relentlessly, the owners of the company          poultice created by an Italian physician who
                                   launched in 1988 a product line for babies, which    came to Mexico in 1860 and decided that this
                                   included the Ricitos de Oro shampoo (Goldie          country would be the land of his children and
                                   Locks), and other personal grooming and skin         his children’s children. n
                                   products. Moreover, they created veterinary
                                   products with natural ingredients.                   www.grisi.com
el faCtor became Droguería Grisi in 1912. Since
   1915, the company exported to the US, Guatemala
 and Cuba. In 1950, Grisi Laboratories pioneered the
                  production of Mexican shampoos.
30 Negocios                                                                                                         Photos COURTESY OF EdiTORial PORRúa




Editorial Porrúa,
The Bazaar That
Made A Century
Of Literature
A good part of the history of literature during
the last century in Mexico has been written
in the bookshelves of Librería Porrúa (Porrúa
Bookstore), a centennial company and one that
has influenced what Mexicans read.



S
          ince its first edition, La Bibliografía, –a bibliographical bulletin   and printed in Spain, although under the imprints of the Librería Por-
          which in 1904 categorized the collection of used and antique           rúa Hermanos y Cía. In 1914 the publishing house published its first
          books for sale by the brothers José, Indalecio and Francisco           book entirely made in Mexico: Las cien mejores poesías líricas mexica-
          Porrúa– up until now, Porrúa has remained one of the country’s         nas (The hundred best Mexican lyrical poems). A year later, appeared
most important promoters of literature and reading in general.                   for the first time the symbol (company logo) that Porrúa uses up till
    In addition, it has proven that reading is accessible to all. Nowa-          now: the head of the Caballero Águila (Eagle Knight), designed by
days, some of its books barely cost four dollars.                                Saturnino Herrán “the most Mexican of all painters.”
    The founders of the Porrúa Bookstore, José, Indalecio and Fran-                  Several of the house’s collections that were born more than 60
cisco, came from Asturias, Spain, to Mexico, at the turn of the 19th             years ago are still current. In 1940 the Biblioteca Jurídica Porrúa (Por-
century, to try out their luck. Each on their own dedicated himself              rúa Law Library) and the Colección de Escritores Mexicanos (Collec-
to trade. Indalecio established a bazaar in Mexico City and in that              tion of Mexican Writers), which has compiled masterpieces of national
bazaar, a sign he placed in 1900 started to give life to what today is           literature, from the Colony to that day, came out. In the 1950s the Bib-
a 100-year old company. “We buy libraries,” said the poster. At the              lioteca Porrúa del Arte (Porrúa Art library), which shows the best of
same time Indalecio asked his brothers to work with him in buying                art and architecture from Mexico and the world, was born. In 1959 Se-
and selling books, back then in a country with mostly analphabets.               pan cuántos, a series of classical works from all times, under the motto:
Between the three, they managed to unite several quality libraries as            “culture available to everyone,” was released. That collection had its
well as libraries that had belonged to illustrious persons from Mexi-            prologues written by writers Sergio Pitol, Juan José Arreola, Salvador
co’s history.                                                                    Novo, Miguel León Portilla and Carlos Monsiváis, among others.
    The Bibliografía was printed in 1904 with the purpose of getting                 After more than 100 years promoting culture in Mexico, Librería
new clients. In 1908, Porrúa published a catalog of 154 pages with               Porrúa has proven that literature can be a healthy business, from any
titles classified by subjects that included antique Mexican books.               standpoint. n
    The editorial side of the family business started in 1910 with the
publication of a guide to the City of Mexico, written by José Romero             www.porrua.com
Fresnillo plc,
World’s Number One
In Silver Production
The world’s largest silver producer is Mexican. Its name is
Fresnillo plc and is heir to a long history of more than 500
years of mining activities in the state of Zacatecas.




T
             he richest silver mine in the world       operating performance, quality and verifiable
             is in Fresnillo, Zacatecas, and is        sustainable development in all our operations,
             owned by Fresnillo plc, a mining          “said Alberto Baillères, Non-Executive Chairman
             company that, with more than 500          of the Board of Directors.
years of tradition and experience, is the global           Fresnillo has a long and proud heritage, a
leader in the production of this mineral and           proven record of mining developmet and reserve
the second largest gold producer in Mexico.            replacement as well as low cost production, being
    Fresnillo plc, is part of Grupo BAL private        in the lowest quartile of the cost curve for both
consortium which owns companies such as El             silver and gold.
Palacio de Hierro (a series of department stores           The company intends to maintain its posi-
installed throughout Mexico), Grupo Nacional           tion as a world’s leading producer, by doubling
Provincial (covering life and medical insur-           its production on a silver equivalent ounce
ance) and Profuturo GNP (fund services for the         basis as well as increasing its gold production
labor retirement savings), among others.               by 2018. And all these with responsibility to-
    The mining company is a subsidiary of Grupo        wards the environment. n
Peñoles, a Mexican company founded in 1887. In
2008, Peñoles split its precious metals assets from    www.fresnilloplc.com

its base metals business to maximise efficien-
cies and floated Fresnillo plc as a gold and silver
miner in London. Today, Fresnillo plc is the only
Mexican company listed on the London Stock
Exchange, fact that has given it the possibility to
strengthen its international visibility and have
access to resources in one of the most important
international mining financial markets.
    With over 4,000 employees, Fresnillo plc op-
erates in four mining units: Fresnillo in Zacatecas,
La Herradura and Soledad-Dipoles in Sonora
and La Ciénega in Durango.
                                                                                                           Photos COURTESY OF FRESnillO PlC




    The company also has a development project
in Saucito , Zacatecas, and three exploration pros-
pects located in San Juan, Durango, San Julián
and Orisyvo, both in Chihuahua.
    In its 2009 annual report, Fresnillo plc re-
ported a strong performance. “We’re thrilled to
report that Fresnillo plc delivered another year
of strong performance [...] The results of 2009 in-
dicate that we are moving at a steady pace, with
32 Negocios i The Lifestyle
32 Negocios                                                                                                    Photos COURTESY OF CEmEx
                                                                                         Photo COURTESY OF aYUnTamiEnTO dE CiUdad JUáREz




Cemex:
More Than
A Century
Of “Concrete”
Building

                                       N
The Mexican building materials                        early 100 years ago, in August          According to a press release, Cemex will
company and one of the top                            1914, one the 20th century’s         supply 500,000 tons of cement to Grupo Uni-
                                                      most emblematic communica-           dos por el Canal (Group United for the Canal),
three of the world’s leading
                                                      tion routes was inaugurated: the     over an investment valued at 300 million usd.
companies in this sector, was          Panama Canal, whose maritime turnpike prac-
born before the Panama Canal           tically hit the waters of the Caribbean and the     A Century of Concrete building
and will now play an active role       Pacific Ocean, going through one of the nar-        When the Panama Canal was nothing but a
in the expansion of its facilities     rowest points of the Isthmus of Panama.             project, Cementos Hidalgo –the name Cemex
                                           It has been said about this construction,       was born into– had been a reality since 1906.
and capacities. This company
                                       through which more than 700,000 vessels             In just three years, and just before the Mexi-
from Monterrey, which now runs         have passed, that “[it] has had an influence        can Revolution broke out, the company had
international operations in all five   on the patterns of global trade, has enhanced       already managed to double its production ca-
continents, has a solid past that      growth in developed countries and has given         pacity, which in those days (1909) was about
vouches for it, and above all, a       to many a remote area the thrust it needs for       66,000 tons of cement each year.
                                       economic expansion.”                                    The escalation in the internal conflict
present in constant growth.
                                           Such a description could also apply to Ce-      did not stop the cement production of this
                                       mex, the Mexican company which in July 2010         company from the North of the country un-
                                       announced that it would provide raw material        til 1912, when the supply of water, electric-
                                       for the expansion of the Panama Canal.              ity, communications, as well as human re-
cUrrently, ceMeX
is Positioned as
one of the three
leading coMPanies
in the gloBal
constrUction
sector, With
More than
50,000 eMPloyees
WorldWide.


                                                         Cemex is actively operating                  struggled through, but it has also managed to
                                                         in over 50 countries on the 5                strengthen its position in the international
                                                         continents.                                  cement markets, thanks to the strong foun-
                                                                                                      dations of its past.
                                                         The company owns 64 cement                       Its present is solid and very consistent, like
                                                         plants, more than 2,200 ready-               its own manufactured product. Currently,
                                                         mix concrete facilities and also             the company is positioned as one of the three
                                                         has a minority participation in 15           leading companies in the global construction
                                                         other cement plants.                         sector, has active operations in 50 countries
                                                                                                      on all the five continents, with more than
                                                         On a global scale, Cemex holds               50,000 employees worldwide.
                                                         493 aggregate quarries, 253                      The exponential growth of Cemex in oth-
                                                         land distribution centers and 88             er nations has not kept it from maintaining its
                                                         marine terminals.                            gaze on the place where its cornerstone was
                                                                                                      laid: Mexico.
                                                         its annual production capacity                   When, in July 2010, hurricane Alex left
                                                         is close to 96 million metric                in its destructive path damages in millions
                                                         tons of cement; it produces 77               in the States of Nuevo León, Tamaulipas and
                                                         million cubic meters of ready-               Coahuila, Cemex announced its commitment
                                                         mix concrete and more than 240               to help rebuild the hundreds of homes and
                                                         million metric tons of aggregates.           public highways that were left in ruins.
                                                                                                          Almost immediately after the tragedy,
                                                                                                      and as part of its integral program on corpo-
sources, made it truly impossible to continue     pire State Building was been inaugurated in         rate social responsibility, the company pro-
production in its kilns and distribution of the   the US (at that time the world’s tallest build-     vided 50 tons of cement and other materials,
resulting building material.                      ing), in Mexico, with the merging of Cemen-         as well as machinery and training for the re-
   Nevertheless, before the official end of the   tos Portland Cementera Hidalgo, the Cemex           pairing and rebuilding tasks in the affected
conflict, Cemex returned to the construction      empire was officially born: a giant in the con-     areas.
sector scene in Mexico. In 1919, Cementos         struction sector, which would later eventu-             Concrete is the most used man-manu-
Hidalgo resumed production and in 1920,           ally become a global leader in its field.           factured product in the world. That is what
a year in which Mexico was still fighting to                                                          Cemex bet and keeps betting on. But not only
return to normality, the building materials       eyewitness to its building                          that. Because in order to be a global player
company kept on growing by using the most         Concrete is one of the most durable materi-         and become stronger as time goes by, other
modern technology of its time.                    als. It has a life cycle of over 100 years and is   ingredients are required.
   At the beginning of the 1920s, Cementos        resistant to fire, wind, corrosion and plagues.         As one of the international workers of the
Portland Monterrey –the company’s second              And once again, the same could be said          building materials company put it: “What
name- began operations with the first kiln        about the company from Monterrey, found-            makes CEMEX different from other compa-
using the long single-step dry process whose      ed little more than a century ago.                  nies, is its vision and the actions the company
production was destined to satisfy customer           Cemex has proven not only its resilience        takes in order to achieve it.” n
demand in Northeastern Mexico.                    to the blows of fate, to global transforma-
   Ten years later, and while in 1931 the Em-     tion and to the financial crisis the world has      www.cemex.com
34 Negocios                                                                                                                    Photos COURTESY OF FEmSa




FEMSA: Revolutionizing
The World Of Beverages
It is no exaggeration to claim that a company existed before Mexico’s
modern era. It began as a brewery in 1890, trading under the name of
Cervecería Cuauhtémoc. The company’s success has risen like froth
and it has since become the largest producer of beverages in Latin
America. For over 120 years, this giant company has been recognized
by yesterday’s royalty and more recently by investors. Considered
as one of the world’s most respected companies, today’s FEMSA is
consolidating its operations every year thanks to its business vocation
of staying one step ahead of the game.




A
              lmost 100 years after Mexico        edition of a beer whose history goes back to
              gained its Independence from        1905 when the company had already been op-
              Spain, a Mexican beverage com-      erating for 15 years in Mexico.
              pany was recognized by King Al-
fonso XIII himself as one his favorites.          revolution? Let’s Get to Work!
    In 1908, the Spanish king appointed Cer-      To claim that FEMSA existed before Mexico’s
vecería Cuauhtémoc as “official supplier to the   modern era is no exaggeration. In 1890, the
Spanish Royal House.” That allowed the com-       company was founded in the city of Monterrey
pany to use the Spanish Royal Crown of Arms       in the northern Mexican state of Nuevo León,
on its labels and stationery.                     under the name Fábrica de Cerveza y Hielo
    And today, over one century later, the same   Cuauhtémoc. It started operations with 70
beverage company that was once the favorite       employees, two administrators and 100,000             own distributor and began officially exporting
of Spanish royalty and which is now the larg-     Mexican pesos in capital. Carta Blanca was its        its products.
est diversified beverage producer in all Latin    first ever product and remains an undisputed              The company was eager not to waste any
America, has decided to drop the shield of the    favorite for Mexicans right up until today.           time at all. From its earliest days, one of its aims
Mother Country, and celebrate the Bicentena-          Its visionary founders have proved that           has been to be self-sufficient and sustainable.
ry Year boasting purely Mexican designs.          nothing—not even a war—gets in the way of                 This company from Nuevo León has
    With an annual turnover exceeding 300         their mission. In 1911, in the throes of the revo-    opened its own channels to guarantee its mate-
billion usd, Fomento Económico Mexicano           lution, Cervecería Cuauhtémoc founded a               rials and supplies, as if eager to reduce its expo-
(FEMSA) —which began life as the mythical         polytechnic college where its employees could         sure to external vicissitudes as far as possible.
Cervecería Cuauhtémoc— recently announced         learn all kinds of skills and professions in a            Over the course of its history as a beverage
that its enormous stable of beverages would       formal environment. That internal training            producer, it has been shepherded by subsid-
join in the patriotic celebrations with special   concept essentially laid the foundations for the      iaries that have supplied its needs constantly:
commemorative editions.                           subsequent founding in 1943 of the Instituto          the glass and cardboard manufacturers for
    Coca-Cola soft drinks, for example, will      Tecnológico de Estudios Superiores de Mon-            its bottles and packaging, laminators, packag-
allude to the 32 states in Mexico, while “Bo-     terrey (ITESM), now Latin America’s most              ers, distribution chains, warehouses, savings
hemia,” one of the company’s most cherished       prestigious private university.                       banks, schools and homes for its workers. And
beers and a favorite among Mexicans and               During the revolution, Cervecería Cuauh-          the list could go on.
foreigners alike, will be produced in a special   témoc was seized for a period, at the end of              It would appear that the spirit of “every-
deluxe design, paying tribute to Frida Kahlo,     which the company’s first manager, Luis. G.           thing’s fine, let’s get to work” is the leitmotiv
Mexico’s most iconic painter.                     Sada, said: “Everything’s fine, let’s get to work.”   of this globalized company from the north of
    “Passionate and bohemian, she was always          That order was followed scrupulously and          Mexico, which constantly seeks to rely on itself
her own subject” was the launch slogan used       a few years later, in 1929, Cervecería Cuauh-         and its internal strength. And, judging by its re-
by the company when launching this special        témoc took a further step forward, opened its         sults, it has succeeded.
100 Years are a Good start                             Start” was used in the 1990s, with the company            creased its range of brands, this time to include
FEMSA has had the same director for the past           celebrating its first century, as during that pe-         non-carbonated beverages.
20 years. That is another feature of the company:      riod its export of beers “with the taste of Mexico”           Now with 120 years of history, FEMSA’s most
stability regardless of external events. Over its      reached various countries across Europe. Its list-        recent business venture has astonished many
history, ever since it was a local company and up      ing on the New York Stock Exchange became                 investors. In early 2010, its directors announced
to its current global position, it has never faced a   a reality almost at the same time as The Coca-            that the Dutch company Heineken had acquired
strike. For over 100 years, FEMSA has not only         Cola Company bought a 30% stake in Coca-                  100% of FEMSA’s beer unit in exchange for giving
learnt lessons but given them too.                     Cola FEMSA, in an operation that confirmed                the Mexican company a 20% share in Heineken,
    Between 1978 and 1979, just 10 years after         the Monterrey-based company could teach a few             currently the world’s third largest brewery.
celebrating its one hundredth anniversary, the         things, even to the biggest fish.                             In 2009, even before that master stroke,
largest beverage company in Latin America                  It was also in that period, in 1995, that it joined   the Reputation Institute, an organization that
took two decisions that would make it the giant        the family of the OXXO chain of convenience               rates the reputation of the world’s largest
that it is today: it listed on the Mexican stock       stores that has since become one of the compa-            companies based on products and services, in-
market and bought its first stock in order to          ny’s top performing areas, currently accounting           novation, working conditions, leadership, gov-
trade the products of the Coca-Cola company.           for over 50% of FEMSA’s revenue.                          ernance, citizenship and performance, ranked
Having cornered the beer market, that marked               For FEMSA the turn of the new millennium              FEMSA in the top 200 of the most reputable
the beginnings of true diversification.                has simply confirmed its vocational role as a             companies in the world.
    And on the threshold of its first one hun-         leading company. Its networks have expanded                   That is surely the current equivalent of be-
dred years in existence, it changed its name to        to include Brazil and Panama incorporating new            ing appointed the official royal supplier, as was
FEMSA—the name by which it is known today,             brands and bottling companies into the group,             the case with Cervecería Cuauhtémoc when it
a business empire grouping together the beer,          and in 2007 it acquired 100% of Jugos del Valle           started out, over a century ago. n
packaging, soft drinks and retail companies.           together with its partner, Coca-Cola Co. The new
    The slogan “One Hundred Years are a Good           departure in diversification has therefore in-            www.femsa.com
36 Negocios i The Lifestyle                                                                                             Photos COURTESY OF BanamEx




Banamex,
The Bank
Of The
Bicentennial
It is one of the strongest financial
and banking institutions in
Mexico. Banamex has been
working in the country for more
than 125 years and it aims to
keep on writing history with
Mexico for many years more.



T
            he history of Banamex (for its ac-     marked by perseverance, dedication and                In the second quarter of 2010, the bank re-
            ronym in Spanish, National Bank        pride. We have the experience and the knowl-      ported profits of roughly 416 million usd that, ac-
            of Mexico) began with the merging      edge of every one of our products that have       cording to the institution, “indicate an increase
            of two financial institutions, Banco   been adapted to modern times and based on         in terms of loans and new customers, a qualita-
Nacional Mexicano and Banco Mercantil Mex-         our clients’ needs. Based on that, we know        tive improvement in the assets and discipline in
icano, on June 2nd, 1884.                          that our history will continue to be written      expenditure.”
    From there on, Banamex has grown and           for many years to come,” the financial institu-       By the end of June 2010, Banamex in-
become, in little more than 125 years, one         tion declares on its website.                     creased its portfolio of up-to-date loans by 28%
of the main banks in the country. In August            And so it has been. In 1929 the bank of-      compared to the same quarter in 2009.
2002, after having complied with all legal re-     fered its customers the service of a savings          “In the year of Mexico’s Bicentennial of its
quirements from both the Mexican and the           account; in 1968 it launched in the domestic      Independence, the results obtained by Bana-
US authorities, Banamex became a part of           market the first credit card and in 1987 it es-   mex clearly show its sustained commitment
Citigroup, one of the world’s main financial       tablished an internal telephone network con-      to Mexico by way of very tangible actions and
institutions, currently active in more than 100    necting all its branches nationwide. In the 90s   outcomes. We administer the highest levels of
countries.                                         the institution became the first bank with a      national savings; we continue to support with
    The sale of Banamex to the financial em-       financial portal where customers could carry      loans families and companies, especially small
porium was completed for approximately             out various banking movements.                    and medium businesses, thus also aiding in our
12.5 billion usd. Thus, in November 2002, the          Today, Banamex offers services to individ-    country’s economic recovery,” Manuel Medina
branches, products and services of Citibank        uals, companies and governments. Accord-          Mora, Chairman of the Executive Board of the
merged with Banamex’s services platform.           ing to the 2009 Management Board Report,          Banamex Financial Group stated in June. n
    “Even when 125 years of efforts have           Banamex obtained net profits of more than 1
not been an easy task, our growth has been         billion usd.                                      www.banamex.com
banamex was founded in 1884. Since then, it has
     grown to become one of the major banking
                      corporations in Mexico.
38 Negocios                                         Photos COURTESY OF SiEmEnS




Siemens:
Doing
Business
With Energy
Siemens has been active for
116 years in Mexico, where
it holds leading positions in
several sectors. The company
is the country’s largest supplier
of power generation and
distribution equipment, as
well as industrial systems and
equipment.

Siemens’ activities in Mexico date back to 1894.
The company’s earliest prominent projects in-
cluded providing the first electric lighting for
the Paseo de la Reforma Boulevard in Mexico
City and constructing the Necaxa hydro power
plant, which is still in operation.
    With more than 8,500 employees and 14
manufacturing plants, Siemens in Mexico not
only contributes to the development of the
country’s technological infrastructure but also
collaborates with private industry. In fiscal
2009 (October 1, 2008 – September 30, 2009),
sales to customers in Mexico amounted to
more than 950,000 usd.
    Siemens holds leading positions in its Indus-
try, Energy and Healthcare Sectors. Siemens IT
Solutions and Services operates across all three
sectors in the country. The solutions the com-
pany provides in Mexico and Central America
include energy generation, transmission and
distribution; transportation systems; medical
diagnostic solutions; information technology
services; lighting; automation and control; lo-
gistics and assembly systems; integrated solu-
tions for intelligent buildings and water treat-
ment and purification systems.
    Early in 2010, Siemens was awarded the
prestigious ESR (Socially Responsible Com-
pany) designation for the fifth year in a row. n

www.siemens.com.mx
siemens in mexiCo
highlights

1894                                    1956
Siemens sets up a Technical Bureau in   The Siemens company in Mexico is
Mexico City.                            re-founded.

1897-1898                               1972
Siemens constructs the first power      SITESA is founded for the production
station in Mexico City. A public        of telecommunications technology.
corporation, Mexican Electric
Works Ltd. / Compañía Mexicana          1987
de Electricidad S.A., is founded by     The first magnetic resonance
Siemens and the Dresdner Bank.          tomograph in Latin America is
                                        installed in the Hospital Central Militar
1905                                    in Mexico City.
Siemens-Schuckertwerke Mexiko
Elektrizitätsgesellschaft mbH Berlin    1994
(SSW-Mexiko) is founded with a          The Siemens activities are reorganized
regional office in Mexico City.         into a holding.

1909                                    1997
SSW-Mexiko becomes the                  PEMEX awards Siemens the largest
representative of Protos Automobile     order so far received to equip a refinery
GmbH Berlin.                            with process control technology.

1911                                    2003
Regional offices are opened in          Siemens delivers two turnkey gas
Guadalajara and Monterrey.              turbine power plants to the state-
                                        owned power utility Federal Electricity
1912                                    Comision (CFE).
An automobile marketing company,
Protos Garage S.A., is founded in       2005
Mexico City. The Rio de la Alameda      Contract for the extension of Metro
power station and the Quijano y         Line 2 in Monterrey, Nuevo León.
Rivero hydroelectric power plant are    After its deliveries for Line 1 (1988)
built.                                  and 2 (1994), Siemens remains the
                                        main supplier of electro-mechanical
1921                                    equipment
The Siemens agency is transformed
into a public corporation and           2007
renamed Siemens Mexicana.               Siemens delivers the equipment for
                                        modernizing the iron and steel works
1929-1930                               and heavy plate rolling mill for the
Generators and transformers             Mexican steel producer Altos Hornos
are supplied for the Rio Lerma          de Mexico (AHMSA) in Monclova,
hydroelectric power plant.              Coahuila.
Clemente Jacques,
Mexican Chili Peppers
With A French Touch
More than 120 years                                  During that period Clemente Jacques has dou-         is one of the most complete on the market, ac-
since its foundation have                            bled its sales. In 2007 –one of the best years for   cording to the company. That is thanks to the
                                                     the company in the forementioned five-year pe-       variety it displays in terms of sizes that cover
given Clemente Jacques
                                                     riod– more than 80 million products from the         the traditional, gourmet and light segments.
something that few have                              brand were devoured in Mexico.                           The company founded by Clemente
accomplished in Mexico: a                               Clemente Jacques has diversified in these         Jacques is so Mexican, that the cockerel –the
foreigner that makes chili                           120 years of existence. Today, it boasts eight       logo that has accompanied the brand since
peppers with the same                                product lines offering various foods and flavors:    1887– is the classic rooster that appears on the
                                                     ketchup, chili peppers, vegetables, dressings,       Mexican lottery game. n
touch as a Mexican.
                                                     jams, vinegar, fruits in syrup and sauces. The
                                                     dressing product line from Clemente Jacques          www.clementejacques.com.mx




“
       Nobody teaches Clemente Jacques how
       to make chili peppers,” was the advertising
       slogan that made the company immortal.
       So much so, that it came to be used collo-
quially by Mexicans to emphasize that little can
be taught to an expert in his own field of exper-
tise.
     History tells that it was in 1887 when French
entrepreneur Clemente Jacques, eager to im-
port to France an infinite amount of articles
such as the classic Mexican game of lottery,
grains, seeds and canned goods, decided to ven-
ture into uncharted territory: processing food.
Thus, he established the first food processing
plant in Mexico that would, in time, become
the pioneer of its kind in all Latin America.
And what was the product that put Clemente
                                                                                                                                                             Photo COURTESY OF ClEmEnTE JaQUES




Jacques at the forefront in those days? It was
precisely the jalapeño pepper, prepared with an
original recipe from the French entrepreneur.
    In 2002 Clemente Jacques merged with
Mexican company Sabormex, one of the coun-
try’s 100 most outstanding companies in terms
of production and distribution of food and coffee.
    Between 2002 and 2007, the packaged and
canned food market in Mexico grew 46% in
terms of volume, and 29% in terms of value.
                    The lifestyle
                          Th e C o m p l et e Gu i d e of th e M ex i c a n Way of Life .



                                     Interview


                                willy
                                sousa
                                   Mexico:
                                World	Sensation
                                         p. 42




                                                                                               The		Lifestyle	Feature
photo courtesy of Willy sousa




                                                                                            Mexico:	200	Years
                                                                                                    of	History
                                                                                                                 p. 52
42 Negocios                                                                                          Photo COURTESY OF willY SOUSa




Mexico:
world
sensation
by MarÍa eUgenia seVilla




                                 h
After achieving phenomenal                         e loves to adapt cameras to       the world together with 700 photographs
success nationally, México                         capture unusual images, pho-      taken all around the country with 18 different
                                                   tographed or filmed as never      cameras and a team of 100 people.
en tus Sentidos, an exhibition
                                                   before.                              With a Fine Arts Master’s Degree in Cine-
by Mexican artist Willy                               Mexican filmmaker Willy        matography from the University of New York
Sousa, is now being taken        Sousa has developed cameras and daring              and two diplomas in senior management,
around the world as part         accessories to give full rein to his creativity,    Sousa’s career has spanned 25 years in which
of the celebrations marking      working with global brands such as Nikon and        he has been a publicist, director and produc-
                                 Vision Research. With the latter, he custom-        er of major publicity and tourism promotion
the Bicentennial year of         ized the Phantom camera –normally used for          campaigns.
Mexico’s Independence and        scientific purposes— to be used for filmmaking         He founded Industria Film Studios 15 years
the Centennial of the Mexican    and for capturing Mexico’s beauty in high defi-     ago in Mexico City, where he spoke to Negocios.
Revolution.                      nition at over one thousand frames per second.
                                     The results of his experimentation were         —What is the background to Monumental
                                 shown in the Monumental Museum México               Museum México en tus sentidos?
                                 en tus Sentidos, displayed in Mexico City’s Con-    Nine years ago I began filming around the
                                 stitution Square Plaza or Zócalo, in its Historic   country because, together with the agency
                                 Center, and which is now being taken around         McCann Erickson, we won a contract with the
                                                                                                                           interview Willy soUsa


    the monumental museum where
    México en tus sentidos was exhibited, was
    installed in Mexico City’s Constitution Square
    Plaza (Zócalo)




Mexico Tourism Board. We traveled around the          on a post measuring 65 centimeters across and           the bicentennial of its independence. We set up
country on five different occasions, covering over    its tradition translates into colors. In Tlacotalpan,   in a 1,200 square meters pavilion. It went really
600,000 kilometers in the 32 Mexican federal          the colors used to paint houses are selected            well. Then we did a short tour to Los Angeles,
entities. I ended up with archives of 1.5 million     depending on who is living there: if the person is      Chicago, New York, Montreal and Toronto and
photographs. A group of investors approached          generous or if he wants people to visit his home,       now we’re off to Shanghai to take part in Mexi-
us and someone proposed staging this exhibi-          the color of his house is different. For each per-      co’s Pavilion in the Expo 2010 Shanghai, with the
tion in the Zócalo. The arrangements begun            sonality, a color.                                      750 photographs and the video. The display in
in August 2009. The project was shown to the                                                                  Shanghai is going to be inaugurated on Septem-
Federal Government in February 2010, three            —Some say that your exhibition                          ber 15. In October, November and December we
weeks before the exhibition opened, and it was        is optimistic and naïve.                                will also be in Tijuana, Michoacán, Cancún and
President Felipe Calderón’s idea that it should go    Humans need inspiration. We have to stop                other places that have got involved in states such
on tour around the world.                             beating ourselves up, we cannot let sensationalist      as Veracruz, Estado de México, Puebla, Guana-
                                                      perspectives take over our lives. This project is       juato, Sinaloa and Chihuahua. We are in discus-
—How does the architectural concept of                a contribution. México en tus Sentidos is spon-         sions about taking the actual museum structure
an ephemeral Monumental Museum                        sored by Amigos de México, a non-profit orga-           to Los Angeles.
take shape?                                           nization formed by businessmen from all across
My idea was to show the exhibition in an impos-       Mexico. Profits are channeled to a non-profit           —What is the appeal of a project like this
ing, grand, majestic place because inside we          organization and to a fund to support artisans to       to the business sector?
were going to show a country. The exhibition          uphold Mexican traditions and customs.                  For example Carlos Slim, owner of Grupo Carso,
included 756 photos of medium and large                                                                       invited us to present the museum at the flag
format and a 9.5 minute-long video, using new         —México en tus Sentidos was a great                     ceremony of the Mexican national soccer team
techniques. Sordo Madaleno did the archi-             success in Mexico.                                      at the World Cup in South Africa. We went to
tecture, while I handled the interiors and the        The museum received 7.26 million visitors               Johannesburg and we gave the video to all those
curatorship. You saw videos on altars, because        in 56 days. People have left comments on my             present. We have gradually been adding more
what you were going to see was the image of a         Facebook reporting how they left the exhibi-            and more people to this project because rather
country, something venerable.                         tion in tears and how many others made peace            than advertising, it is a question of spirit.
                                                      with their country after seeing it. Others have
—How do you perceive the colors on the                even sent me images of saints, flowers and other        —Do you think that your work will
Mexican palette?                                      souvenirs.                                              help other countries get to know
It’s all about identity and belonging, like the                                                               Mexico better?
textiles in Zinacantán, Chiapas, each of which tell   —Tell us about the tour                                 We are doing what we can, but we need more
a story. One of Papantla’s flyers was taught from     The Ministry of Foreign Affairs invited us to rep-      support. As Mexicans, we need to join the effort
a young age to “talk with the wind” and dance         resent Mexico during Argentina’s celebrations of        to show what is good in our communities. n
44 Negocios                                              Photo COURTESY OF willY SOUSa




danCe of
papantla’s
flyers
Cuetzalan, Puebla




                    danCe of the ConCheros                                       temple of
                      in the Constitution Square Plaza                      san antonio
                                              (Zócalo)           Aguascalientes, Aguascalientes
                                           Mexico City                            (BANAMEX
                                                                     PHOTOGRAPHY PRIZE)
                                           interview Willy soUsa




   ángel,               paraChiCos’
   a Cora boy           danCe
   Nayarit              Chiapa de Corzo,
                        Chiapas




ball game
of the rarámuri
The Sierra Tarahumara
Batopilas, Chihuahua
46 Negocios

01             04




                      122 Years Developing
                      Circus Arts
02
                     On August 26, 2010,
                     Circo Atayde Hermanos
                     celebrated its 122nd
                     anniversary, marking
                     more than a century of
                     shows that are engraved
                     in modern circus
                     tradition.



03




              T
                           he adventure began when Aurelio Atayde               In 1927, second generation brothers Aurelio and An-
                           Guízar, the grandfather of today’s genera-       drés Atayde Arteche, together with their sister Patricia,
                           tion of Circo Atayde Hermanos entrepre-          performed successfully in several European cities, with
                           neurs and artists, left home to work in the      a routine that was unprecedented in the Old Conti-
              circus. Years later, Aurelio convinced his brothers to        nent. The act involved flying from a trapeze, suspended
              join him to establish their own company and in 1888,          several meters over the ring, to another after turning
              Circo Atayde Hermanos performed for the first time.           twice in the air, with no support save the acrobats’ own
                  Despite its struggles during the Mexican Revolu-          strength. This feat earned the three Atayde siblings
              tion, the Atayde family took the show to many places          an entry in the Guinness Book of World Records and
              around the country for the first time before deciding         they were named the best trapeze artists in the world
              to embark on a new adventure: a tour around Central           in their time.
              and South America that would last 20 years.                       After 20 years of absence and traveling virtually all
                  During these two decades, Circo Atayde Hermanos           around Central and South America, from Guatemala
              went through countless experiences, some related to           to Tierra del Fuego, Circo Atayde Hermanos returned
              the inevitable itinerancy of circus life and others result-   to perform again in Mexico City on February 15, 1946.
              ing from accidents and coincidence.                           Such was their success that since then, they have played
                  The pages of their 20-year history are peppered           an annual season for Mexican audiences in different
              with box-office hits and critical triumphs, flops, tent       cities around the country.
              fires, a near shipwreck, earthquakes, deaths and births           In 1998, when Circo Atayde Hermanos celebrated
              in the tent.                                                  its 110th anniversary, they toured the United States
                                                                                   entertainment circo atayde herManos

 05                                            06                                        07




 08                                            09                                                                    10




for the first time. Kevin Baxter, journalist for the Los   gregated in the Circo Atayde Hermanos’ ring for over a                        photos
                                                                                                                          01 - 03, 05 , 06 , 08 - 10
Angeles Times, wrote: “In Mexico, where the name           century, entertaining generations of Mexicans.                        by Shawna Nelles
Atayde is a synonym of circus, Atayde Hermanos                Today, the Atayde family’s interest lies not only in           04 by Ricardo Villar
                                                                                                                                07 by Anahí Parra
should be considered a national heritage, like Octavio     entertaining but also in preserving the art of circus,
Paz’s poetry or Gabriel Figueroa’s films.”                 probably one of the oldest forms of entertainment. In
   Awards are also part of Circo Atayde Hermanos’          2005, the company signed an agreement with the Na-
history. In 2004 the company received the Gold Ring,       tional Council for Culture and the Arts (CONACULTA),
the world’s most important circus award, from the In-      through the National Center for the Arts (CENART), to
ternational Circus Festival of Monte-Carlo.                create the diploma course “Towards a Methodological
   Great artists from countries such as Ukraine, Swe-      Construction of Circus Arts,” aimed at preserving, re-
den, France, the United States, England, Hungary,          establishing and developing circus arts in Mexico.
Peru, Cuba, Canada, China, Switzerland, Bulgaria, Ke-         Circo Atayde Hermanos is Mexico’s oldest circus,
nya, Argentina and Mexico have trodden the sawdust         but stays young through ever new and different pro-
with Circo Atayde and discovered in its tents a space      posals.
to express themselves –which goes beyond languages            For Circo Atayde Hermanos, driving the circus for-
and frontiers– to the delight and amazement of the         ward in the 21st Century means not only competing
audience.                                                  against virtual entertainment media, but also nurtur-
   Millions of spectators, hundreds of acts, artists and   ing the culture of amazement and imagination and cre-
animals, thousands of yards of fabric and rope, tons of    ating spaces where the rare and fanciful become real
sawdust, tension, laughter and amazement have con-         adventures. n
48 Negocios i The Lifestyle                                                                                                                    Photos aRChivE




                                               Mexican
                                             inventions
                                                Moving
                                             The World
                                                                                                 by antonio VÁZQUeZ


                                                         From color television to indelible ink, the first oral
                                                              contraceptive pill and lounge music, Mexican
                                                           imagination, creativity and intellect are involved
                                                         in several inventions “made in Mexico” that today
                                                              are cogs that move the world in almost every
                                                              aspect of its daily existence. The following are
                                                           some examples of Mexican inventions that have
                                                                                          changed the world.



      01




Books On Demand                                                                  yes, you can even use your laptop—and begin
At any time, any place and in any language. It is as easy as printing a book     to make books to order in just a few minutes.
in just 17 seconds using the Book on Demand or InstaBook technology,             When the sheets appear from the printer, the
created by Mexican writer and unionist Víctor Celorio.                           Instabook Maker takes over. It sorts and pairs,
    When he was just 10 years old, Celorio knew that the written word            folds, cuts and binds to give you a book in just a
was his calling. At 14, he had already published his first story. Years later,   matter of minutes. It can make one, ten or 100
literature would lead him in new directions, such as book publishing.            books, all the same or all different.” That is how
That meant he created the Book On Demand technology with which, in               Celorio’s technology works according to Insta-
just a few seconds, it is possible to print and bind books.                      Book’s official website.
    Celorio’s technology evolved until it became the huge company                    The most important factor is the price: it       01 the instabook
known today as InstaBook, with its headquarters in Florida.                      costs less than a dollar to produce a book of        maker Technology
                                                                                                                                      allows to print a book in
    “You just need to connect InstaBook Maker III to your computer—              about 100 pages.                                     just 17 seconds.
                                                                                                                                             sCienCe & teChnology MeXican inVentions

                                                                                                                                                       02
Photo aRChivE




                                                                                                                                                              02 the oral ContraCeptive
                                                                                                                                                              Was created by Mexican chemist Luis
                                                                                                                                                              Ernesto Miramontes, in 1951.


                                                      Oral Contraceptive                                                                                      Lounge
                                                      Mexican chemist Luis Ernesto Miramontes                  In 1960 the Federal Drug Administration        Juan García Esquivel is remembered as the
                                                      Cárdenas is attributed with having created the       (FDA) approved the use of the pill that would      Mexican who –apart from providing the music
                                                      world’s first oral contraceptive, proving to have    mark the beginning of a genuine revolution in      in the seventies for television programs such as
                                                      one of the highest effective percentages at 99.9%.   history. “In just six years, the sex and family    the Flintstones, Charlie’s Angels, Kojak or The
                                                         In 1951, Miramontes, then just 26 years old,      lives of a large and growing sector of the North   Munsters— invented lounge music, a musical
                                                      managed to synthesize norethisterone, a ste-         American population have been changed and          genre that created a whole new lifestyle.
                                                      roid that would be used to make the pill. The        liberalized,” wrote Time magazine in 1967.             Esquivel, an engineering graduate from the
                                                      patent for the invention was granted to Mira-            In 1999, The Economist rated the contracep-    National Polytechnic Institute (IPN) incorporat-
                                                      montes, Carl Djerassi and George Rosenkranz,         tive pill as the most important invention of the   ed the xylophone, piano, bongos, acoustic and
                                                      who at that time worked for the Mexican com-         20th century, used by over 215 million women       electric guitars into his musical arrangements,
                                                      pany Syntex.                                         across the world.                                  giving his music a unique feel that would later
                                                                                                                                                              be called “lounge” or “space age pop,” alluding
                                                      03 the roCket belt A system of individu-
                                                      al propulsion based on hydrogen peroxide.                                                               to the hallucinatory sounds that conjured up
                                                                                                                                                              the feeling of being in space.
                                                                                                                                                       03
                                                                                                                                                                  According to Letras Libres magazine in its
                                                                                                                                                              February 2002 issue, lounge music was revived
 Photo COURTESY OF TECnOlOGÍa aEROESPaCial mExiCana




                                                                                                                                                              in the 1990s with García Esquivel’s work reap-
                                                                                                                                                              pearing on CD format. The specialist magazine
                                                                                                                                                              Rolling Stone interviewed the Mexican in those
                                                                                                                                                              years and Microsoft used his music for Win-
                                                                                                                                                              dows 95. Personalities such as Matt Groening
                                                                                                                                                              (creator of The Simpsons), Bono of U2 and di-
                                                                                                                                                              rector Quentin Tarantino have all recognized
                                                                                                                                                              the influence of García Esquivel in their work.

                                                                                                                                                                                                          04




                                                      Rocket Belt
                                                      Going “to infinity and beyond” are not just the      propulsion systems. Lozano invented the pen-
                                                      words of Buzz Lightyear, the animated charac-        tametallic catalyst used in rocket motors that
                                                                                                                                                                                                                 Photo aRChivE




                                                      ter from Toy Story, it is a reality thanks to the    work by using organic hydrogen peroxide.
                                                      Rocket Belt, a system of individual propulsion           Over time, Lozano, who is the only person
                                                      based on hydrogen peroxide that gives its wear-      in the world to have manufactured and flown
                                                      er the chance to rocket to the sky.                  a rocket belt—made by himself—outside the US,
                                                          Since 1975, Juan Manuel Lozano, the              created TAM, a Mexican company with clients
                                                                                                                                                              04 juan garCía esquivel Inven-
                                                      Mexican inventor behind the technology, has          including Boeing, Massachusetts Institute of       tor of lounge music, a musical genre that
                                                      worked with rocket and hydrogen peroxide             Technology and Walt Disney Pictures.               created a whole new lifestyle.
     50 Negocios i The Lifestyle                                                                                               Photos aRChivE / COnCRETOS TRanSlúCidOS


      05




                                                                                                                       05 the world trade Center in
                                                                                                                       Mexico City is one of the many buildings that
                                                                                                                       have been constructed using the Tridilosa
                                                                                                                       structural system.

     Tridilosa                                                                                                         Translucent Concrete
     In 1962, Mexican engineer and politician He-        in the use of concrete and making a much                      Strong as concrete but 30% lighter, translucent
     berto Castillo created a three-dimensional          lighter structure. This makes it possible to                  concrete, a creation of Mexican engineers Joel
     structural system made of steel and concrete        use it for much longer spans,” according to                   Sosa Gutiérrez and Omar Galván Cáceres, has
     which he called tridilosa.                          the Heberto Castillo Foundation’s website.                    a 50-year lifespan and can generate savings in
         “Tridilosa was created in order to opti-            Tridilosa has been used in buildings in                   electricity by allowing 70% of natural light to pass
     mize and rationalize the design and con-            Mexico City such as the 54-storey World                       through it.
     struction of structures, using concrete and         Trade Center, the 30-storey Torre Chapulte-                       Translucent concrete is also esthetic and en-
     steel. Unlike traditional structures, this obvi-    pec and in the Centro Médico Siglo XXI, and                   ables savings on finishing materials such as paint,
     ated the need to use concrete as a filler in the    in buildings in other countries, such as the                  plaster or varnish. This material is manufactured
     tension zone, only on the upper part of the         Biosphere 2 building in Arizona, to name just                 in a similar way to traditional concrete but using
     compression, creating savings of around 66%         a few.                                                        an additive made to a secret formula.
                                                                                                                           This component, given the name Ilum, makes
                                                                                                                       translucent concrete up to 15 times more resis-
     06 guillermo gonzález Camarena
     created in 1940 the Field-Sequential Trichromatic   Color Television                                              tant than traditional concrete, ensures zero wa-
     System, which allowed the color television.
                                                         In 1940, Mexican engineer Guillermo González                  ter absorption and also lets light pass through it,
                                                         Camarena was just 23 years old when he cre-                   making it a significant development for projects
                                                         ated the Field-Sequential Trichromatic System,                such as marine infrastructure constructions.
                                                         that would adapt to the television so that it                     The invention led its creators to set up their
                                                         could give a color image. “My invention is re-                own company, Concretos Translúcidos, which
                                                         lated to the broadcast and reception of color                 received almost 700,000 usd from the National
06                                                       both for films and images, by cable or wireless,”             Council of Science and Technology (Conacyt) in
                                                         said Camarena in his patent request number                    2005 in order to begin operations.
                                                         2296019 in the US, awarded to him in 1941.                        The company now has operations in Mexico
                                                             Five years later, in August 1946, the scientist           and the US, as well as interest from Europe, Asia,
                                                         sent the first color broadcast from his labora-               South America and the Middle East.
                                                         tory in the offices of the Mexican League of Ra-
                                                                                                                                                                       07
                                                         dio Experiments. The invention was so popular
                                                         that by around 1948, Columbia Broadcasting
                                                         System (CBS) used it for the broadcasts of its
                                                         television programs.
                                                             Today, the precursor of color for televi-
                                                         sions created by Camarena has transformed
                                                         so much that it is now known as HD (High
                                                         Definition).


                                                                              07 transluCent ConCrete
                                                                                alllows 70% of natural light to pass
                                                                                                         through it.
                                                                                                                  sCienCe & teChnology MeXican inVentions

                        08                                                                                                  08 the metropolitan Cathedral
                                                                                                                            in Mexico City was restored using the “control
                                                                                                                            piles” technology




                                                                                                                            Control Piles
                                                                                                                            Mexico City’s deformed and varied soil mo-
                                                                                                                            tivated Mexican engineer Manuel González
                                                                                                                            Flores to create a technology called “control
                                                                                                                            piles” in the 1950s, for use as foundations,
                                                                                                                            refoundations, and to raise, lower, arrange,
Photo FRanCiSCO diEz




                                                                                                                            align and straighten over 600 buildings.
                                                                                                                                Mexico City’s soil—mainly consisting of
                                                                                                                            a clay composite—has caused buildings to
                                                                                                                            sink, rear up above sidewalks and gardens
                                                                                                                            and lean over during earthquakes or dam-
                                                                                                                            age adjacent buildings.

                                                                                                                                                              09 3d images on
                       3D Television and PCs                                                   09                                                             a television or a
                                                                                                                                                              Computer are possible
                       Seeing 3D images on a television or a computer is                                                                                      thanks to the work of Mexican
                       possible thanks to the work of Mexican engineer                                                                                        engineer Manuel R. Gutiérrez
                                                                                                                                                              Novelo.
                       Manuel R. Gutiérrez Novelo.
                           In 2003, the Mexican created a device called
                       TD Vision, with which it is possible to visualize
                       images in three dimensions. From the outset,
                       companies like Texas Instruments, Microsoft,
                       Motorola and even NASA showed an interest in
                                                                               Photo aRChivE




                       the invention, which has been used in a wide va-
                       riety of fields, from military industry to medicine,
                       as well as for architecture, civil engineering, space
                       industry and videogames.

                                                                                                                                                                                      10

                       Indelible Ink
                       Filiberto Vázquez Dávila is a Mexican chemist
                       whose invention could never be erased: indel-
                       ible ink, used in election processes in Mexico
                       since 1994 and in Honduras and Nicaragua
                       since 2000.
                           In 1993 the Federal Electoral Institute (IFE—


                                                                                                                                                                                              Photo COURTESY OF inSTiTUTO FEdERal ElECTORal
                       the organization in charge of coordinating elec-
                       tions in Mexico) launched a global bid for tender
                       for an ink to be applied to the thumbs in order to
                       improve control over elections and prevent voters
                       from casting votes more than once.
                           “This substance chemically combines with
                       the proteins of the skin and ensures that they
                       remain pigmented for as long as it takes the
                       skin’s external cells to regenerate and revert to
                       their normal color,” stated the inventor himself
                       on the portal of the alumni community of the
                       Tecnológico de Monterrey university, where
                       he studied a Masters in Chemistry and has
                       worked as a teacher.                                      10 the indelible ink
                                                                                 is used as a control method in
                           Since 1994, the ink has been produced                 Mexican elections.
                       in sufficient quantities to stain 600 million
                       thumbs all over the world. n
52 Negocios i i The Lifestyle
52 Negocios The Lifestyle                                                                                                             Photo aRChivE
                                                                                                                                 inFograPic OldEmaR




      Mexico: 200 Years of History




                  1810                      1821               1824             1825              1837           1847            1857
                  Miguel Hidalgo            Mexico             Enactment        Creation of       The port of    Grants are      Enactment of
                  proclaims Mexico's        achieves its       of the           the National      Veracruz is    awarded to      the Constitution
                  Independence in           independence       Constitution     Museum            enabled.       introduce       of 1857, which
                  Dolores, Guanajuato.      from Spain.        of 1824.         (Museo                           public          replaced the
                                                                                Nacional) in                     telegraph       one of 1824.
                                                                                Mexico City.                     service to
                                                                                                                 Mexico.




     1895
     Various textile
     companies join
     to create
     Compañía
     Industrial
     Manufacturera.
     The port of
     Veracruz is                                               1892                          1891            1890             1889            1887
     modernized. In                      CIDOSA opens a textile mill       Mexico enters a stage of     The country               The         Foreign
     Mexico City,                            in Río Blanco, Veracruz.     industrial diversification       has 9,544      market in       investment
     works for the                               1,241 telephone lines         with the creation of      kilometers     La Merced,         in mining.
     subterranean                           operating in the country.        enterprises in sectors      of railways.     in Mexico
     telephone                           The Puebla-Oaxaca railway         such as food, beer, glass,                   City, is built.
     network begin.                                     is inaugurated.          cement and steel.




     1896
     Electric street
                                1897                   1898                       1900                  1901
     lighting in                Opening of             Opening of the             Fundidora de          Mexican Petroleum is born. The
     Mexico City                the Mexico-            Campeche-                  Fierro y Acero        company drills 19 wells in Tamaulipas
     starts working.            Cuernavaca             Yucatán railroad.          de Monterrey          and Veracruz. The electric streetcar
     A movie                    railroad.              Concessions for            is established.       between Mexico City and Coyoacán
     projector arrives                                 the electric               Mexico has a          starts operating. The construction of
     to the country                                    streetcar in Mexico        population of         the Legislative Palace in Mexico City
     for the first time.                               City are granted.          13.6 million.         begins.
                                                                                  interview andreas heinecKe
                                                              the lifestyle feature MeXico: 200 years of history




                                                                                                                            1873
                                                                                                                            Opening of
                                                                                                                            the Mexican
                                                                                                                            Railroad,
                                                                                                                            form Mexico
                                                                                                                            to Veracruz,
                                                                                                                            423 km long.




1859           1862       1864               1865           1868            1870            1872
Reform       Battle of    English            The            Foundation      4,000           The
Laws. Civil  Puebla.      businessmen        telegraph      of the          schools         telegraph
marriage is               create the Bank    network        National        are             reaches
introduced                of England,        is growing,    Preparatory     installed       7,776 km.
into Mexican              Mexico and         it reaches     School.         across the
law.                      South America.     1,867 km.                      country.                                       1875
                                                                                                                           The Mexican
                                                                                                                           Senate is
                                                                                                                           formally setup.




                                                                                                                           1878
   1886         1884          1883            1882                                1881                          1880       Introduction
     Labor        The       3,821 km       Telephone               Mexican government         Foreign investment in        of public
     Day is   National    of railways      lines begin          awards railroad building             infrastructure.       telephone
   held for    Bank of          in the   to operate in           contracts. The Mexican         Inauguration of the        service
 first time   Mexico is      country.      Monterrey.          National Bank is created.               railway lines       between
in Mexico.     created                                          Works for electric street     Mexico-Tehuacán and          Mexico City
                                                           lighting in Mexico City begin.       Hope River-S.Juan.         and Tlalpan.




 1904                     1905                   1906                   1907                            1908                  1909
 Construction             Begins the             Inauguration           Opening of the                  The Oil               Vidriera
 of the                   construction of        of the Salina          Palacio Postal in               Company               Monterrey is
 Mexico-Puebla            the Palacio de         Cruz port and          Mexico City. Start              Eagle is              established.
 and Mexico-              Bellas Artes in        the Minatitlán         of the Tehuantepec              founded with
 Toluca roads.            Mexico City.           Refinery.              railway operations.             British capital.
54 Negocios                                                                                                              inFograPic OldEmaR




     Mexico: 200 Years of History

     1986
     Mexico is
     home to the
     FIFA World
     Cup for the
     second time.


     1985                                   1989           1990                    1994                1995                       1996
     An earthquake                          58 airports    Mexican writer          North American      The free trade             1 million
     in Mexico City                         in the         Octavio Paz             Free Trade          agreements between         mobile
     causes                                 country        receives the Nobel      Agreement           Mexico, Colombia and       phone
     material and                           carrying an    Prize for Literature.   (NAFTA) comes       Venezuela and between      users.
     life loses.                            average of     Concessions for the     into force.         Mexico and Costa Rica
     Mexican                                58 million     construction of         Satellites          come into force. Mario
     astronaut                              passengers     highways are            Solidaridad I       Molina Henriquez
     Rodolfo Neri                           a year.        awarded. Cell           and II are put      receives the Nobel
     Vela goes to the                                      phone service           into orbit. Metro   Prize in Chemistry for
     space in the                                          begins, 64,000          in the city of      his research on the
     SpaceShuttle                                          users are registered.   Monterrey           formation and
     Atlantis.                                                                     starts operating.   decomposition of ozone
     Morelos                                                                                           in Earth's atmosphere.
     satellites are
     put into orbit.


     1983
     Digital
     telephone                1982         1978           1977 1970 1968                  1967         1965        1963                 1957
     system            Alfonso García    4 million     The road Mexico       XIX          One       Starts the     Mexico     An earthquake
     starts.          Robles receives telephone         network     hosts Olympic     million       automatic    is chosen     in Mexico City
                     the Nobel Peace     lines and        covers the FIFA Games. telephone                long      to host        caused the
                          Prize for his     76 bus 120,173 miles.  World          lines in the       distance     the XIX            Angel of
                    diplomatic efforts stations in There are 40      Cup.            country.          service    Olympic      Independence
                           on nuclear the country. bus stations                                      (LADA).       Games.           and some
                        disarmament.                  across the                                                              buildings to fall.
                                                        country.




      1910                         1911             1917                    1918          1920             1921         1923
      Mexican Revolution           From 1884 to     The Constitution        Oil ranks     Mexico           First        The first radio
      starts. The population of    1911, foreign    that currently          first in      produces         landing      broadcasters
      the country is 15.1          investment       governs the country     Mexican       25% of the oil   of an        begin to operate.
      million people. The          rose from 110    is promulgated. Bus     exports.      consumed         airplane.
      National Autonomous          million to 3.4   public service starts                 worldwide.
      University of Mexico         billion USD.     in Mexico City.
      (UNAM) is inaugurated.
                                                              the lifestyle feature MeXico: 200 years of history




1998          1999          2000                 2001                                 2004         2005             2010
The Free      The Free      The free trade       The free trade agreements            The Free     The              Bicentenary
Trade         Trade         agreements           between Mexico, El Salvador,         Trade        Economic         of the
Agreement     Agreement     between Mexico       Guatemala and Honduras               Agreement    Partnership      Independence
between       between       and Israel and       and Mexico and the European          between      Agreement        of Mexico and
Mexico and    Mexico and    between Mexico       Free Trade Association               Mexico and   between          Centennial of
Nicaragua     Chile comes   and the European     (Norway, Iceland, Switzerland        Uruguay      Mexico and       the Mexican
comes into    into force.   Union come into      and Liechtenstein) come into         comes into   Japan comes      Revolution.
force                       force. 14.07         force. 13 million digital phone      force.       into force.
                            million mobile       users and 21.7 million mobile
                            phone users.         phone users.

                                                                                                                           1934
                                                                                                                       Minimum
                                                                                                                          wage is
                                                                                                                        set in the
                                                                                                                         country.


     1956       1953          1952              1948          1943         1938           1936
          The Women       Opening of        Begins the            The The Federal           The
construction are given       Ciudad construction of         Mexican Electricity        National
 of the Torre the right Universitaria,       the Torre       Institute Comission Polytechnic
       Latino-  to vote.    UNAM’s             Latino-       of Social    (CFE) is     Institute
  americana                     main    americana in         Security    created.       (IPN) is
     finalizes.             campus. Mexico City. The        (IMSS) is              inaugurated.
                                       first television     founded.                                                  1933
                                         transmission                                                                 The first
                                           takes place.                                                               automatic
                                                                                                                      traffic lights
                                                                                                                      in Mexico
                                                                                                                      City are
                                                                                                                      installed.




 1924                    1925            1927             1928             1929           1930         1931         1932
                                                                                                                    After 27
 The first               The Banco       The first        Birth of the     Regular        Mexico's     Official
                                                                                                                    years, the
 automatic               de Mexico       inter-           National         civil          road         Opening
                                                                                                                    construction
 telephone network       is founded,     national         Securities       aviation       network      of the
                                                                                                                    of the Palacio
 is established in       modeled         long             Commission       service.       covers       airport in
                                                                                                                    de Bellas
 the Roma                after the       distance         (Comisión                       886 miles.   Mexico
                                                                                                                    Artes is
 neighborhood of         US Federal      call is          Nacional de                                  City.
                                                                                                                    completed.
 Mexico City.            Reserve.        made.            Valores).
56 Negocios i The Lifestyle                                                       Photos COURTESY OF Canana FilmS




                                                          the
                                                          revo-
                                                          lution
                                                          still
                                                          going
                                                          on in
                                                          cineMa
                                                          The centennial celebration of the
                                                          Mexican Revolution is the ideal
                                                          excuse for ten Mexican directors to
                                                          capture their vision of the country in
                                                          a movie.




                                                          t
                                                                       en directors, ten stories, one movie: that is
                                                                       how Latin American movie producer Canana
                                                                       Films celebrates the first 100 years since the
                                                                       Mexican Revolution and, practically at the
                                                          same time, the invention of cinema.
                                                             Revolución (Revolution), a 106 minute-long film
                                                          (www.revolucion100.com) is made up of ten short films,
                                                          each one independent from the others. Every one of the
                                                          short stories portrays what contemporary Mexico means
                                                          to each director. The leitmotiv of the ten stories is the
                                                          armed struggle that began officially on November 20th
                                                          1910, in the North of Mexico, then spread through the
                                                          whole country and is considered one of the most impor-
                                                          tant political and social events in the 20th century.

                              01 revoluCión
                                (revolution)
                                a 106 MinUte-long filM,
                                Made UP of then short
                                filMs, ProdUced By
                                canana filMs, iMcine
                                and teQUila tres
                                generaciones.
                                                                                                                  film reVolUción

                        02 la 7th y alvarado
                           (7th and alvarado)
                           rodrigo garcÍa
                           [pAsseNgers, Mother ANd
                           soN]
                           the ghosts of the MeXi-
                           can reVolUtionaries Visit
                           doWntoWn los angeles,
                           california.




                                                            02



    The uprising that demanded democracy and social        03 30/30
                                                             rodrigo plá
justice matches the invention of cinema, some years          [el oJo eN lA NuCA, lA
earlier, at the end of the 19th century. Thus, the Mexi-     zoNA, desierto AdeNtro
                                                             (the desert Within)]
can Revolution was the first armed movement to be            noWadays the sig-
filmed. “The cameras recorded the cavalry charges,           nificance of the
                                                             reVolUtion has Been
the 30/30 rifles, the troop movements on the railroads       forgotten and its cel-
and the accomplice gaze of the camp followers [pros-         eBration has BecoMe a
                                                             Mere shoW.
titutes mainly] who accompanied the revolutionaries
during the struggle,” reminisces Canana Films.
    Taking shelter in the cameras that made them im-
mortal, Mexican revolutionaries from 1910 –and dur-
ing the following ten years that the armed struggle
lasted– gave interviews, faced the federal forces and
fired shots that even stopped the clocks decorating
                                                                                                                                    03
public buildings.

                                                                              04                                                    05




04 la tienda de raya                                                                  05 éste es mi reino
  (the estate store)                                                                    (this is my kingdom)
  By Mariana chenillo [MAr AdeNtro (deeP sea), CiNCo díAs siN NorA                      carlos reygadas [JApóN (JaPan),
  (nora’s Will)]                                                                        BAtAllA eN el Cielo (Battle in heaVen)
  Before the MeXican reVolUtion, landlords and BUsinessMen Used                         luz sileNCiosA (silent light)]
  to Pay their eMPloyees With VoUchers redeeMaBle only in their                         a groUP of good MeXican PeoPle and
  oWn stores, KnoWn as “estate stores.” the director coMPares                           soMe friends froM other nations
  What haPPened a centUry ago to the Wage Policies Used noWa-                           coMe together to celeBrate a feast
  days By soMe Big corPorations and goVernMent.                                         in the coUntryside.
58 Negocios i The Lifestyle                                                                                        Photos COURTESY OF Canana FilmS


 06
                                                                                           06 r-100                     08 lindo y querido
                                                                                             gerardo naranjo                 (BeaUtifUl
                                                                                             [drAMAMex, Voy A                and BeloVed)
                                                                                             explotAr (i’M going             patriCia riggen [re-
                                                                                             to eXPlode)]                    trAto de fAMiliA (faMily
                                                                                             tWo WorKers, the                Portrait), lA MisMA
                                                                                             tUrK and the rat,               luNA (Under the saMe
                                                                                             rUn aWay froM                   Moon)]
                                                                                             their Violent Past.             the story of elisa,
                                                                                             When they reach                 Whose father’s last
                                                                                             the highWay, they               Wish is to Be BUried in
                                                                                             haVe to taKe a risK             MeXico. elisa, an aMeri-
                                                                                             to continUe.                    can citiZen, doesn’t
                                                                                                                             Understand Why her
                                                                                                                             father Wants so. UPon
                                                                                                                             elisa’s arriVal to her
                                                                                                                             father’s Village, she
                                                                                                                             discoVers the ValUe
                                                                                                                             of the hoMeland and
                                                                                                                             Why it is Worth it to
                                                                                                                             go BacK.




 07                                                                                                                     08




07 luCio                      A hundred years later, the causes, challenges, illu-           as a collective awareness, based on the formal and aes-
      gael garCía bernal
      [défiCit, 8]
                           sions and the disillusions of the 1910 uprising still prevail     thetic universes of its directors.”
      lUcio sPends the     in Mexico. A hundred years later, those ideas inspired
      WeeKend With
      his grandMother
                           ten Mexican directors to take up arms (in the form of             Three Producers, One revolution
      and his coUsins      cameras): Mariana Chenillo, Fernando Eimbcke, Amat                Revolución, as most recent movies produced by quality
      PreParing his flag
      salUte for school.
                           Escalante, Gael García Bernal, Rodrigo García, Diego              Mexican cinema, is the shared effort of its creators, as
      the Visit of his     Luna, Gerardo Naranjo, Rodrigo Plá, Carlos Reygadas y             well as of Mexican public and private companies. The
      reBellioUs coUsin
      oMar Will MaKe
                           Patricia Riggen.                                                  movie was produced by Canana Films, the Mexican In-
      hiM reflect on the      In the movie, the filmmakers again wind up the clocks          stitute of Cinematography (Inmcine for its acronym in
      trUe Meaning of
      Patriotic actions
                           the bullets stopped and analyze the country’s present             Spanish) and Tequila Tres Generaciones.
      and syMBols.         through ten stories that produce a contemporary vi-                   Canana Films is an international producer and dis-
                           sion on the social and personal revolutions that have not         tributor of film and television, headquartered in Mex-
                           stopped among Mexicans. As put by Canana Films, every             ico City. It was founded by Pablo Cruz and actors Gael
                           short in Revolución “puts the term back in the spotlight          García and Diego Luna, with the goal of promoting cine-
                           and proposes a unique approach to the idea that lives on          ma made in Latin America. The company develops the
                                                                        film reVolUción

                           09 paCífiCo
                              (Pacific)
                              diego luna
                              [JC CháVez, ABel]
                              after haVing had
                              another heated fight
                              With the Mother of
                              his child, daniel goes
                              to his Beach-side
                              ProPerty in search
                              of his lost dreaMs
                              and MeMories. once
                              there, he realiZes the
                              dreaMs and MeMories
                              he originally thoUght
                              he Was chasing only
                              eXist at hoMe, With
                              his faMily. Being so
                              far aWay froM those
                              he loVes, daniel is
                              sUBMerged into deeP
                              Pain and angUish as he
                              faces the PossiBility
                              of losing theM.


                                                                 09




                                                            10        10 la bienvenida
                                                                        (the WelcoMe)
                                                                        fernando eimbCke
                                                                        [teMporAdA de pAtos
                                                                        (dUcK season), lAke
                                                                        tAhoe]
                                                                        tells the story of a
                                                                        Village Which is eX-
                                                                        Pecting the arriVal
                                                                        of a sPecial gUest.




                                                                      11 el Cura niColás
                                                                        Colgado
                                                                        (father nicolÁs
                                                                        hanged)
                                                                        amat esCalante
                                                                        [sANgre (Blood),
                                                                        los BAstArdos (the
                                                                        Bastards)]
                                                                        a Boy and a girl on
                                                                        a donKey rescUe
                                                                        a Priest hanging
                                                                        froM a tree. he Will
                                                                        taKe theM to a neW
                                                                        Place.

                                                                 11

projects of a whole generation of filmmakers from the
continent that are interested in finding new ways to tell
stories that would eventually become a reference point
for the Latin American point of view and that would
probe the current limits of culture and entertainment.
    For 25 years now, the task of Imcine has been to
create the best possible conditions to develop the film
industry in Mexico. With Marina Stavenhagen run-
ning it since 2007, the institute has managed to reac-
tivate the national cinematographic production. The
third producer of Revolución, Tequila Tres Generacio-
nes, contributed part of the money needed to cover
the film’s budget, thanks to article 226 of the Income
Tax Law that offers tax cuts to companies supporting
Mexican cinema. n
60 Negocios i The Lifestyle                                                                                                                  Photo aRChivE




Mexico:
A Promising
Destination
Ever since its Independence,                        to Mexico,” according to the National Institute            One of the articles in Los inmigrantes en el
Mexico has received flows of                        of Statistics and Geography (Inegi) in its study       mundo de los negocios siglo XIX y XX refers to
                                                    called Los extranjeros en México (Foreigners in        the barcelonnettes from Ubaye in France, one
immigrants and individual
                                                    Mexico).                                               of the most important immigrant groups in the
foreigners whose work here                              Most foreigners who have come to Mexico,           second half of the 19th century and in the early
has become world renowned.                          especially those from Anglo-Saxon countries,           20th century. Patrice Gouy, another foreigner
                                                    agree that Mexicans are hospitable. And they           who has forged a career in Mexico, states that




F
           or some a discovery, for others a des-   are usually right. Although throughout its his-        between 1870 and 1914 one out of every four
           tination, paradise, refuge or home.      tory Mexico has had leaders who have passed            barcelonnettes –an astonishing 25%– emigrat-
           Over the two centuries since its Inde-   severe anti-immigrant laws, since Mexican              ed to Mexico.
           pendence, and even before, Mexico        Independence in 1821 most of Mexico’s heads                The case of the barcelonettes is essential if
has been all this for thousands of citizens from    of state have encouraged foreign immigration           we are to understand Mexico’s history today.
other countries around the world. Many fill         through the enactment of various laws and              Famous for their influence in banking and the
the history books. The rest have helped shape       regulations, in order to promote economic in-          textile and fashion industries, they founded
the multiple identities of one of the world’s       vestment, write Rosa María Meyer and Delia             department stores that have become business
most complex countries, referred to by many         Salazar, in their book Los inmigrantes en el           successes across the country, such as El Palacio
of these adopted Mexicans as the land of pure       mundo de los negocios siglo XIX y XX (Immi-            de Hierro, El Puerto de Liverpool and Fábricas
surrealism.                                         grants in the business world in the nineteenth         de Francia.
    Ever since the arrival of the first European    and twentieth centuries).                                  In the article “Mexicanos que nos dio el
Conquistadors to America toward the end of the          The typical gastronomy in states such as           mundo” (Mexicans from the World) published
15th century, Mexico has been host to flows of      Puebla, Yucatán and Tampico would not be               in the magazine Mexicanísimo on July 2008,
immigrants and individual foreigners who have       the same without the presence of the French,           Jorge Arnau Ávila also recounts the cultural
helped shape the country’s mestizo culture.         Lebanese and Chinese. The Son Veracruzano              relevance of immigrants who came to work
    Sometimes these immigrants only passed          would not exist if it were not for the Arabs and       in Mexico after its independence, such as the
through Mexico. At other times, they stayed         Africans who came to Veracruz, which port              Italians who came to Chipilo, Puebla, in 1882:
for ever and either they or their children form     has always been a gateway to the world.                “The Germans in the Chiapanecan coffee plan-
part of the country’s cultural and economic             One of the most important Mexican histori-         tations during the 19th century, the European
heritage. It would be impossible to imagine, for    ans of our age, Jean Meyer (who incidentally has       Mennonites in Chihuahua and Durango; the
example, Frida Kahlo’s paintings (daughter of       French roots) wrote in his book Los franceses en       Russians (and Italians) in the vineyards of
a German photographer), or the work of the          México durante el siglo XIX (The French in Mexi-       Baja California in the early 20th century, and
photographer and model Tina Modotti and of          co during the 19th Century) that diversity is what     the Japanese who arrived at Puerto Madero
filmmaker Luis Buñuel existing in any other         created life, buildings and culture in this area:      in Chiapas after an agreement was signed by
country.                                            “Soldiers, doctors, hairdressers, printers, gold and   Porfirio Díaz,” who also promoted the arrival
    “Italians, English, French, Chinese, Korean,    silversmiths, sculptors […] were at the forefront of   of French in Mexico due to his personal tastes.
Japanese, Spanish, Lebanese, Argentineans,          a wave of specialist immigration which continued           Before Porfirio Díaz, even the wars of in-
Americans and others have all made their way        throughout the 19th century.”                          tervention by France and the US, both during
                                                                      the lifestyle report MeXico: a ProMising destination




the 19th century, led to an influx of immigrants        One of the immigrant groups in Mexico           Commission (COMAR, 1980), with the support
due to cheaper communication and more ac-           that have been especially skillful as business-     of the office of the United Nations High Com-
cessible transport between Mexico and other         men have been the Jews and the Lebanese,            missioner for Refugees (UNHCR).
countries.                                          most of whom came to Mexico alone and                   Migratory flows are not just events that
    Of course, the battles that spread citizens     without speaking a word of Spanish. “These          happened in the past and Mexico has not been
from all over the world throughout Mexico           migrants and their children proved a great          the only destination. Across the entire planet,
were not just avoided here.                         ability to develop business opportunities and       immigrants have influenced culture, evolved
    The military service requirement for            quickly accumulate capital during the 20th          language and inspired the arts. The United Na-
young Lebanese men in the late 19th century         century,” says the researcher at the Autono-        tions calculated that in 2005, there could be be-
and in the early 20th century caused a large        mous University of Yucatán, Luis Alfonso            tween 185 million and 192 million immigrants
number of Arabs to emigrate to Mexico. The          Ramírez, in his article Estratificación, clase y    across the world.
Nazi regime in Germany brought hundreds             parentesco: empresarios libaneses en el sur-            In 2000, the census carried out in Mexico
of Jews to join those who had already estab-        este de México (Stratification, class and par-      by the Inegi counted almost half a million for-
lished themselves in Mexico during the first        entage: Lebanese businessmen in the South-          eigners who have not naturalized, although
half of the 20th century. The horror of the         east of Mexico).                                    the Institute itself admits that figure may be an
Spanish Civil War and the political perse-              Indeed, one of the most successful business-    underestimate. Three of every ten (30%) came
cution during the dictatorship of Francisco         men in Mexico and the world, Carlos Slim, be-       from the US; 4.8% from Guatemala; 4.2% from
Franco caused waves of Spanish intellectu-          longs to that community. Owner of the most          Spain; 1.3% from Argentina and a similar fig-
als to come after 1937. Jorge Arnau indicates       important telecommunication companies in            ure from Colombia and Cuba; 1.2% came from
that “El Flandre” docked in Mexico in April         Mexico, Telmex and Telcel, as well as the San-      Canada and a similar number from France.
1939 carrying 300 Spanish immigrants. That          borns restaurant chain and dozens of other          The remainder came from countries as far
month, 3,000 additional Spanish arrived in          businesses, Carlos Slim is son of Julián Slim       away as China, Korea and Japan.
two more ships.                                     and Linda Helú. The former was a Lebanese               Inegi’s figures show that, of the foreigner in
    The Cuban Revolution in the mid 20th cen-       emigrant who came to Mexico in 1902 at 14           Mexico, 65.7% contributed their experience in
tury also led to a mass emigration from the is-     years old, without speaking the language, and       the tertiary sector of the economy (commerce,
land to other countries around the world, and       the latter a member of a Lebanese family that       transport, government); 20.1% in the second-
Mexico received dozens of Cubans, especially        arrived in Mexico at the end of the 19th century.   ary sector (mining, oil and gas extraction,
industrialists and entertainers. One of Mexico’s        Throughout the 20th century, Mexico con-        manufacturing, generation and distribution of
leading businessmen of recent times, Adolfo         tinued to receive citizens from all around the      electricity, water and construction) and 4.7% in
Horn, came from Cuba. Here, he promoted the         world. During the 1970s and 1980s, its south-       the primary sector (agriculture, livestock farm-
development of Mexico’s Silicon Valley, a vast      ern border gave refuge to dozens of Central         ing, hunting, fishing.)
industrial complex in the state of Jalisco, where   Americans fleeing the social and military vio-          Since almost half the foreigners in Mexico
multinational and Mexican assembly plants           lence that had broken out in their region. Be-      are heads of their family, it is likely that most
are in operation. Horn is also the creator in the   fore that, Chilean, Argentinean and Uruguayan       of them will put down roots in the country
1960s of one of the most popular sweet snacks       exiles had found their home in Mexico fol-          and help continue to fill the universal history
in the region, the Bing and Dolphy ice creams.      lowing the creation of the Refugee Assistance       books. n
62 Negocios i The Lifestyle                                                  Photos COURTESY OF FUndaCiÓn PRO mixTECa




fundaCión
                                                                         “The Year, 2015. We are in the Oaxaca Mixteca
                                                                         region, a place which only a decade ago was
                                                                         one of the most devastated places in indigenous


pro mixteCa:                                                             Mexico. Today, a large team of leaders, men and
                                                                         women, are working with passion to make all
                                                                         their dreams true: productive projects, busi-


MaKing dreaMs                                                            ness ownership and community developments
                                                                         that have emerged from the family orchard,



coMe trUe
                                                                         the restaurants and community factories. The
                                                                         landscape of the place known as ‘the Mixteca
                                                                         knot’ has changed and best of all is that this so-
                                                                         cial and economic breakthrough is expanding
by cristina ÁVila-Zesatti                                                to other regions in Oaxaca thanks to the drive of
                                                                         these leaders who are sharing their experience
In a place known as Ñuu Savi, or the “People of the Rain,” located in    with others in the state and the country… it is,
the “knot” of the Oaxaca mixteca region, an organization has decided     undoubtedly, an unprecedented multiplying ef-
                                                                         fect for this region.”
to change the face of hopelessness. With a methodology focused
                                                                             Yes, that is now a reality. At least the real-
on the dreams of every single person, Fundación Pro Mixteca now          ity that Fundación Pro Mixteca is aming to
assists some 25,000 people living in one of the most remote places in    achieve, with a clear and specific vision: “over
Mexico. Its actions are already visible in 30 communities of the area,   the next five years our goal is to transform
where 18 productive projects are today a reality.                        the communities of the Mixteca, prompting a
                                                                         change from within.”
                                                                                                           feedbaCk fUndación Pro MiXteca




    It is not an easy challenge. The Mixteca is          “What makes Fundación Pro Mixteca dif-
one of the most complex regions of Mexico in         ferent, is not only its willingness to reach out to
terms of social, economic and especially geo-        these remote sites, but also, and above all, the
graphical features, since this site in southeast-    methodology they have implemented to do so.
ern Mexico is mired in an almost impossible          We focus all our attention on ‘the person,’ the
mountain area.                                       individual, to ensure that each one becomes a
    “The Foundation was born from what was           promoter of community change. This model
first a religious calling. There were hundreds       is about making people want to change their
of volunteers who 20 years ago began climbing        reality, which is the first step to truly do this.
to this place in the sierra to set their missions.   Fundación Pro Mixteca does not force the peo-
These visits allowed some people to realize          ple of these communities to embrace change.
that there was much more to do, like chang-          They themselves are the proponents and own-
ing the fate of the people who live there. The       ers. What we do is to accompany them during
religious purpose became a social project in-        their transformation process and get them
volving all the inhabitants of the communities       near to what is needed to make change pos-
where we work, regardless of their faith,” says      sible,” says the organization’s director.
Guillermo Zorilla López de Lara, director of             Fundación Pro Mixteca has named their
Fundacion Pro Mixteca, in an interview with          action model as a “Model of Human Develop-
Negocios.                                            ment.” Following this particular method, all
                                                     the initiatives of the organization prompt the
Untying the Knot of Isolation                        people with whom they work in the Mixteca to
The so-called “knot of the Mixteca,” where the       wish, know how and be able to generate their
Sierra Madre Oriental, the neovolcanic axis          own development, without any imposition or
and the Sierra Madre del Sur meet, is a suc-         handouts.
cession of valleys and mountains known as                “Our foundation does not give any kind of
the Ñuu Savi (which means the “People of the         direct financial support but rather ‘accompa-           tools and contacts to make their dreams come
Rain”). Due to its complex geography, it is one      nies’ the communities in their transformation           true,” says Zorrilla López de Lara.
of the least explored areas of Mexico.               process. We do not hand out resources, nor                 To achieve its goals, the organization is cur-
    This is where six year old Fundación             offer any gift; what the organization seeks             rently staffed with two promoters who live
Pro Mixteca is determined to go, in order to         and does is lead citizens to question, to reflect       permanently in the Mixteca region. Every
achieve a positive change in the group of com-       among themselves, so that they propose and              week they keep track of each of the 30 com-
munities dwelling in this region; villages that,     own up to the productive projects that are nec-         munities where they work and permanently
due to the geographical complexity surround-         essary and possible in their communities. Only          assess both the projects already underway and
ing them, have had little or no access to even       after that, Fundación Pro Mixteca acts, sup-            the new ideas or suggestions that emerge from
the most basic services.                             porting and providing them with the required            the inhabitants of the region.
64 Negocios i The Lifestyle                                                                                  Photo COURTESY OF FUndaCiÓn PRO mixTECa


                                                                                                        ects and tanks capturing rain water. They are
                                                                                                        all different, but they all respond to the needs
                                                                                                        of the different places and they are all in com-
                                                                                                        plete harmony with nature,” says the director
                                                                                                        of Fundación Pro Mixteca.

                                                                                                        There Is no Harm in Dreaming,
                                                                                                        But Making Dreams Come True Is Better
                                                                                                        “Our model states that the action of the Foun-
                                                                                                        dation should encourage people to wish and
                                                                                                        to know how to act in order to generate their
                                                                                                        own development. If the person is responsible
                                                                                                        for carrying out his or her dream, we are talk-
                                                                                                        ing about a big breakthrough, because his or
                                                                                                        her mind has changed. However, it is then our
                                                                                                        turn to act to facilitate that change, to make the
                                                                                                        dream come true, so we are exceeding in at-
                                                                                                        tracting more resources, more people involved
                                                                                                        with what we do. We want to be consistent
                                                                                                        with what we teach and not leave projects half
                                                                                                        done in the places where we work,” says Zor-
                                                                                                        rilla López de Lara.
                                                                                                            So far, this organization has benefited from
                                                                                                        the assistance of other civil society organiza-
    “We are talking about processes that are        project belongs to an individual or family.         tions, NGOs and companies that are contribut-
very long, not only because of the very nature      There is also a subsidy spirit: we are facilita-    ing financially, such as the Fundación Alfredo
of the projects, but also because our goal is to    tors, so we expect that everyone involved do        Harp Helu, Grupo Bimbo, Lala or Bachoco, as
encourage a cultural change. It is only in this     his or her part. And, finally, we work with proj-   well as aid from people who make small dona-
way that the transformations and changes will       ects that have a deep respect for nature, eco-      tions. These funds are aimed entirely at main-
last. Only in this way will the projects under-     efficient projects that do not harm the living      taining the actions of Fundación pro Mixteca
taken not be abandoned or left undone,” adds        space inhabited by our beneficiaries,” explains     in those regions and to pay the salaries of the
Guillermo Zorrilla.                                 Guillermo Zorrilla.                                 four-member staff.
                                                        With an annual budget of nearly 155,000             Fundación Pro Mixteca also has its own
Changes With Respect                                usd, Fundación Pro Mixteca works in three mi-       dreams: to increase the staff appointed in Oax-
for Mother Nature                                   cro-regions of the Oaxaca Mixteca and some          aca in order to increase its outreach to other
The Mixteca region remains today a strong in-       even more remote communities. Overall, its          communities and support further more pro-
fluence of syncretism in traditions and typical     scope of work now extends to 40 community           ductive projects in the Sierra.
“lifestyle.”                                        leaders and another 75 in training. The orga-           “We have our internal goals to improve our
     According to current maps, the Oaxaca          nization conducts workshops and seminars            response given to those who trust us. First we
Mixteca is spread throughout 189 municipali-        for community action and the two promoters          want to increase our donor base, positioning
ties in Oaxaca, where the strong influence of       who live in the area constantly monitor the         our influence throughout different audiences
traditions and lifestyles of indigenous com-        transformational process.                           and design as soon as possible a model of in-
munities still prevails. Although rich in natural       With patience and a lot of presence, over       teractive communication with our patrons and
resources, the Ñuu Savi region is not as lucky      the years some projects have already seen the       sponsors,” explains Guillermo Zorrilla.
in terms of abundance. Those who live there         light of day, while others are in the process of        Fundación Pro Mixteca faces no easy chal-
are mainly working in farming and to a minor        creation, with different stages of progress.        lenge, though it is not impossible. In the short
extent in crafting or trading.                          “Today we have 10 ongoing projects of all       term, the idea is to have four additional pro-
     Fundación Pro Mixteca knows that caring        kinds in 18 communities. The important thing        moters in the region to design productive proj-
for nature is key to the livelihood of communi-     here is that each one has been an initiative of     ects for 30 communities.
ties in the region.                                 the citizens: we have people building their own         For now, its influence can already be seen.
     “We work first with the individual, with the   dreams and the best part is that each in turn       Its action is evident among some 25,000 peo-
person and his or her dreams and goals they         benefits all the people of this place. We have      ple living in the “knot of the Mixteca” and its
want to achieve. Secondly, through Solidar-         very simple as well as complex projects, from       vision for 2015 is expected to be accomplished
ity, which in turn implies Common Good, we          production of organic honey, jams, garlic and       in Ñuu Savi, among those who call themselves
expect the projects we carry out to become of       coffee to the formation of family orchards or       the “People of the Rain,” becoming a gradual
benefit for others, facilitating teamwork, since    garden beds made of recycled materials, to          but lasting change in the vision and mind of its
there are common interests, even though the         the crafting of rural stoves, reforestation proj-   dwellers. n

				
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