A state-owned Chinese company will develop an industrial park in western Mexico that could be China’s biggest investment in Latin America’s second largest economy.
China Communications Construction Company is set to sign an agreement with the local government of Jalisco state to build the facility for Chinese manufacturers, according to Reuters.
Mexican officials said the two sides will undertake a feasibility study to identify a suitable location for the park.
Also, state representatives will make two trips to China to assess which companies could come to Mexico.
The plan is to develop a 500-hectare site with the Jalisco government paying for half the land and the Chinese the rest.
The Chinese will finance the park’s development alone.
Jalisco, which at the weekend emerged relatively unscathed from Hurricane Patricia, is home to Guadalajara, the second biggest city in Mexico.
How much the Chinese invest and where the park would be will depend on a six-month study process, one of the officials said, adding that formal adoption of the project would also hinge on the Chinese agreeing to send manufacturing firms.
Industrial parks of a similar size developed in Mexico by global manufacturers have involved investment ranging from hundreds of millions to more than US$1 billion.
Guadalajara occupies a strategic position between Mexico’s top container port Manzanillo and the industrial belt of central Mexico, which is well connected to the United States.
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