Top 5 Job-Generating Canadian Companies in Mexico
The economic and trade relation with Canada is very important to Mexico, since it is the country’s second trade partner and one of the main sources of direct foreign investment. In particular, the investment figures have brought about the creation of significant employment sources and there are five companies that stand out in this aspect.
According to the information provided by Canada’s Chamber of Commerce in Mexico (CanCham), Canadian companies are presently generating over 100,000 directs jobs in Mexico, and a similar number of indirect jobs. Nevertheless, five companies are responsible for a high percentage of such amounts of jobs.
As a result of the enforcement of the North American Free Trade Agreement (NAFTA), the investment developed by Canadian companies in Mexico has been multiplied, which has favored an important increase in the number of direct jobs generated by such companies.
The CanCham has pointed out that the top five job-generating companies in the Aztecan land are Magna, TransCanada, Scotiabank, GoldCorp and Bombardier.
1. – Magna International is the number-one Canadian company in terms of employment creation in Mexico, with nearly 40,000 jobs. The company is related to the spare parts sector with presence in Mexico since 1999.
The firm has developed in Mexico one of its largest production platforms in the world. It manages over 30 plants throughout the country, specifically in Sonora, Nuevo León, Coahuila, San Luis Potosí, Guanajuato, Estado de Mexico and Puebla.
The Mexico-based production platform is Magna’s fourth most important one worldwide, only exceeded by its plants in Canada, United States and Germany. Its list of clients includes such remarkable car brands as Audi, BMW, Chrysler, Fiat, Mercedes Benz, VW, Saab, KIA, Toyota, Mazda, General Motors, Subaru, Freightliner, Jaguar, Hyundai, Kia, Opel, Porsche, Mitsubishi Motors, Suzuki, PSA Peugeot Citroen, Renault, Nissan, Honda and Daimler.
2. – TransCanada, with all of its projects, employs nearly 20,000 people and it is present in the energy sector, specifically in the transportation by means of gas pipelines.
The presence of the company in Mexico dates back from mid 1990s when the first two private gas pipelines were built in the country. Ever since, TransCanada has built and operated additional gas pipelines: Naranjos–Tamazunchale, Manzanillo–Guadalajara and Tamazunchale-El Sauz. Furthermore, two new gas pipelines are scheduled to be operational in 2016: Oro-Mazatlán and El Encino-Topolobampo.
The company’s operation in Mexico is growing as the country works to connect the natural gas supply with markets interested in the service, thus expanding its transportation network and increasing the number of workers needed to develop the projects.
According to Reuters, Brandon Anderson, CEO of the company in Mexico, said that TransCanada Corp could double its investment in the energy sector in Mexico, nearly 5,000 million dollars by 2018, mainly boosted by the generation of electricity and opportunities to construct pipelines.
3. – Scotiabank Financial Group counts on 13,353 workers distributed in the bank, stock market house, investment funds operator and the Scotia Family Credit & Corporative Services firm. The institution is one of the six largest banks in the country, with national coverage and significant presence in terms of mortgage, automotive and entrepreneurial credits.
Since October 2014, the institution is chaired by a Mexican executive, as Enrique Zorrilla was appointed chairman and general manager of the Mexico-based subsidiary.
The whole Scotiabank Financial Group, headed by the bank, features 876 branches and 2,209 automatic cash dispensers in Mexico.
4. – GoldCorp mining company employs 6,000 people. It is the most important Canadian mining group in Mexico and one of the largest in the country.
It manages three mines in Mexico, which produce gold, silver, zinc and lead. Peñasquito mine, nestled in Zacatecas, stands out as it is the biggest opencast mine in Mexico.
Los Filos, located in Mezcala, Guerrero state, is both an opencast and underground mine, and produces gold and silver. It used to be Mexico’s main gold mine, but it was left behind by Peñasquito. The third mine is El Sauzal, in Urique, Chihuahua state. It is an opencast gold mine and has been an important base for GoldCorp’s operation in Mexico.
5. – Bombardier has over 30 years of experience in Mexico and more than 20 years of presence, generates nearly 5,000 jobs between its aerospace and transportation (trains) sectors, almost 50 – 50.
The original presence of Bombardier in Mexico targeted the transportation sector. In 1981, the company made incursions into the Mexican market with its first contract to make 180 coaches for the subway in Mexico City.
In 1992 the company acquired the National Railroad Coach Manufacturer (Concarril is the Spanish acronym) and established its offices in Sahagún City, Hidalgo, where it manufactured trains for Monterrey’s Subway and Guadalajara’s Urban Electric Train System.
Bombardier’s investment was diversified in Mexico when, in 2005, the company’s aerospace division announced the establishment of a manufacturing center in Querétaro, where it invested 200 million dollars and presently stands as a whole cluster in the sector.
However, on January 15th the company announced the reduction of 1,000 jobs in Mexico and United States due to the insufficient demand of its Learjet 85 airplane.
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