Mexico is a growing hotspot for manufacturers of clean technologies and renewable energy products.
From complete solar array systems and wind turbines, down to the CPV wafers, international manufacturers are flocking to Mexico to take advantage of the highly skilled workforce and favorable trade agreement.
In April 2012 Mexico’s Congress approved a new clean energy law requiring renewable energy generation to grow to 35% by 2024. Worldwide demand for cleantech products coupled with international heads of state enacting legislation for mandatory use of renewable energies are contributing to manufacturer’s big push to increase production and reduce costs. With major players such as Kyocera already producing millions of solar modules in Tijuana, more international firms are beginning to follow suit.
Cleantech Manufacturing is on a Major Shift from Offshore to Near-shore Due to New Duties on Chinese Imports of Solar Cells Effective December 2012
The US Department of Commerce issued orders to begin collecting duties on Chinese imports of solar cell products at the end of 2012. Growing anti-offshore sentiments, especially in the United States, are apparent with the US Census Bureau reporting Chinese imports of solar cell products was down over 2011 by 30%, from $2.25B to $1.65B in November 2012.
With these new additional costs for production overseas, many international manufacturers are moving operations to Mexico. The North American Free Trade Agreement (NAFTA) has fostered a pro-business environment with reducedor eliminated tariffs for trade between Canada, the United States and Mexico.
CleanTech Products from Green Facilities
Mexico’s manufacturing capabilities are matched by the international wave of responsible corporate practices for reduced waste and increased efficiency. Crowned by ISO 14001, this new international standard certifies facilities that adhere to sustainable practices from waste and pollution reduction to using renewable energy sources such as solar or wind generation for facility electricity.
The first large scale PV project in Tecate was just completed under collaboration with several international and Mexican companies and ProMexico, the federal institution established to strengthen Mexico’s participation in the international economy. The first 50MW installation was completed in January 2013, putting the project well on its way to achieve 450MW capacity.
Benefits of Cleantech Manufacturing in Mexico
- Established industry & production experience
- Diversified, highly skilled workforce
- Proximity to California and North American markets
- Low shipping costs and stable exchange rate
- Favorable trade and tariffs under NAFTA
- Pro-business environment
- Short time-to-market and just-in-time manufacturing