MEXICO has turned the corner and is again a good investment prospect for Irish companies, according to Mr Jaime Alatorre, president of the Mexican Investment Board.
Speaking to potential investors as part of a whirlwind tour of Europe, Mr Alatorre insisted that Mexico had left its recent crisis in the past.
"Inflation is down to 25 per cent this year and will probably fall to around 15 per cent next year," he said. That is from a high of almost 100 per cent after the peso crisis in 1995. Mexico now has a balanced budget and the macro numbers look good, according to Mr Alatorre.
"Any company which is looking for access to the US market must look at Mexico for investment opportunities," he said.
Two Irish corporates have large investments in Mexico while several are there on a smaller scale. Smurfit has investments of almost $200 million, while Kerry Group investment is worth around $35 million.
According to Mr Frank Hayes, corporate affairs manager at Keyry, the Mexican investment is now beginning to return a profit after losses in the aftermath of the devaluation crisis.
The group is using Mexico as a base to sell foodstuffs in the US and Latin America. Mr Hayes told Mr Alatorre and the Mexican ambassador Mr Agustin Gutierrez Canet that it was not possible to make money only selling into the Mexican market as the company had hoped to do.
"The spending power is just not there," he said.
Mr Alatorre said Mexico was once again attracting investment from sectors as diverse as automotive, chemicals and electronics to food processing and textiles.
"The advantage is market access to North America as well as low manufacturing costs," he said.
British companies which have a presence in Mexico include Tate & Lyle, ICI, Unilever, Allied Lyons and BP.
Other Irish companies are looking at entering the market.
Mr Pat Kearney, business coordinator at Kentz Corporation, said the company was looking at the opportunity to link up with a Mexican group in the energy field.
Mr Des Burke, managing director at Ormonde Mining, said his "small scale" gold exploration was going well.
