MexicoMaricruz Alfaro

Bradley Corporation

Executive SummaryOil & Gas Sector Reform 2013

•Open to Private Investment•National Infrastructure Plan (NIP)

Mining Investments• Mining Development Programme 2013-2018 (MDP)• $34.3 BN USD & 365 project by 2018

Recommendation

National Infrastructure Plan 2014-2018• $590 Billion USD Plan• Energy Sector• $299 Billion USD Investment• 50% of program investment• 262 projects• http://presidencia.gob.mx/pni/objetivo.php (Official Site)

TWC

General Country Information: People•Population:  121.7 Mil (2015)

25-54 years: 40.55%

Language: Spanish 92.7%

Capital: Mexico City (21 Mil Population)

Mexican Customs & Traditions

Lengthy Meetings

CIA World Factbook

General Country Information: EconomyGDP TOTAL:• $1.1 TR USD

(2015)

Growth Rate GDP2.3% (2015) 2.1% (2014) • 1.4% (2013)

1 USD =17.7541 MXN

(5/4/16)$15.88 (2015) $13.292 (2014) $13.292 (2013)

$3.7 BL more in Imports!CIA World Factbook, XE

Top 5 Sectors

Wholesale Trade

Real Esta

te

Constructi

on

Oil & Gas M

ining

Business

Servi

ces

-50

0

50

100

150

200

$190.7

$140.0 $93.6 $74.8 $71.9

5.7%

1.7%

1.8%3.4%

-6.3%

2014 Level Bil USD 2015 % Change

Wholesale

Trade23%

Real Es-tate17%Construction

11%Oil & Gas Mining

9%

Other40%

% Share of GDP

BMI

Commercial Construction Analysis: Construction

Construction

•3rd place in the region (Colombia, Chile)

Current Spending:

• $192 MN USD• Mexico National

Infrastructure Plan (NIP)

Growth:

• 2015: 3.4%• 2016: 3.2%• 2017: 2.4%• 2018:2.09%

Presidencia.gob.mx, BMI, Acquisdata

Commercial Construction Analysis: Energy (Oil & Gas)

Presidencia.gob.mx, BMI, Acquisdata, HSBC Holdings

Energy (Oil & Gas)

• 5th in region (Brazil, Colombia, Peru, Chile)

Current Spending & Growth:

• $5.5 BN USD• 1.9% growth to

2024 – Subject to NIP

Reform

• End of 76 year Monopoly

• Open to Foreign Investment

• Large Investments

Commercial Construction Analysis: Petrochemical

Petrochemical

• Ku- Maloob-Zaap Plant in Campeche• 37.5% National Oil

Production

Current Spending:

• 2.4 BL USD (2014)

Growth:

•$98.9 BN USD by 2020

Presidencia.gob.mx, BMI, Acquisdata, HSBC Holdings

Commercial Construction Analysis: Mining

Mining• 4th source of

foreign currency • 5th most attractive

country to invest in the sector

Current Spending:• $20.1 BIL USD

Growth:• -2% (14-15)• 14% by 2016• MDP: $34.3 BN USD

investments & 365 projects

Presidencia.gob.mx, BMI, Acquisdata. Camimex, Inegi

Mining Statistics

Camimex

Commercial Construction Analysis: Projects

• Mexico City AirportConstruction• Reconfiguring of Oil Refinery- Tula• Los Ramones Pipeline ProjectEnergy

• Ethylene XXI PhotosPetrochemical• http://portalweb.sgm.gob.mx/economia/es/mineria-en-mexico/consulta-proyectos.h

tml (Project List)

• http://mexicominingcenter.com/gis/main.php (Project Map)Mining

BMI, Acquisdata, CICM, Hydrocarbons Processing

Competitive Analysis: Safety Fixtures

Mexican Competitors

New Competitor

Potential Product Listing

Marketing Analysis: TradeshowsEnergy Congreso Mexicano de

Petroleo 2016June 8, 2016 – June 11, 2016

Articles (p.74): Mexico Oil & Gas Review (Advertising Possibility)

Petrochemical American Ass. Of Petroleum Geologists SEG

Sept 6, 2016- Sept. 9th, 2016

Mining Zacatecas Mining International Expo Show 2016

8th - 11th June 2016

MEXICO MINERGY 2016 Nov. 23, 2016- Nov. 25, 2016

Geomin, Expodatabase, Congreso Mexicano del Petrolero, Mexico Oil & Gas Review

Customer Analysis

Ameco/Fluor (Mining)• Client: Altos Hornos de Mexico S.A. de

C.V. (AHMSA)• Client: Minera y Metalúrgica del Boleo,

S.A.P.I. de C.V. • Client: Odebrecht Ingeniería y

Construcción Internacional• Ethylene XXI Project

Toyo Engineering (Energy)• Petroquímica Dalian• 5 Pemex Jobs in Refining & Refineria

Duna Mol

Ameco.com, Toyo-eng.com

Trade Barriers: Tariff

Tariff Barriers:

• 15% Tariff (NAFTA Non-qualifying goods)• NAFTA • 16% Tax

Non-Tariff Barriers

• Administrative procedures• Piracy and counterfeiting rates increase• Mexico’s oil and gas sector remained largely closed to private

investment- Now Opened!

Export.customsinfo.com, USTR.gov

Trade Barriers: Risks

Countrywatch, Doingbusiness.org

Political RisksPRI: 6.5

(10=Lowest Risk)

Organized Crime

CorruptionPolitical

Stability: 6.5 (10 Stable) 

Media Restrictions

on Gang Activity

Ease of Doing Business

Rank: 38 out of 189

countriesEase in paying

taxes +11

Supply ChainPotential Logistics Challenges

Best: 3.57 Timeliness Worst: 2.69 Customs Score: 3.19   

The World Bank

Supply Chain

The World Bank

Trade Finance• Cash In Advance; • Confirmed Letter of Credit; • Open Account Terms; 

Top Payment Terms

• LONG-TERM GUARANTEES AND LOANS AUTHORIZATIONS  : $9.4 TrillionEX-IM Coverage

• Mexico Rating: BB• less vulnerable to nonpayment• Ongoing uncertainties

Country Credit Risk:  

Export.gov,EXIM Bank, Euler Hermes, Standards & Poor

Thank you!