Jalisco state to donate US$3mn towards Flextronics plant

Thursday, February 21, 2008

Mexico's Jalisco state government plans to provide 35mn pesos (US$3.2mn) in grants to help Singapore-based electronics manufacturing services provider Flextronics' (Nasdaq: FLEX) expansion, Mexican paper Milenio reported.

The funds are to come from the state's economic promotion council CEPE and the government expects the expansion to generate some 4,000 jobs, the paper reported.

The state's investment represents approximately 50% of the CEPE's funds for 2008, another Milenio report said, citing CEPE director Federico Torres.

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The Flextronics expansion "is one of the largest initiatives that we have seen and the vote was unanimous [in the CEPE council] because it represents such a strategic project, unlike any seen over the past eight years," Torres reportedly said.

According to Torres, Flextronics would then invest some US$24mn in a new plant and the repositioning of the firm's headquarters from Kansas City to Guadalajara.

Flextronics officials were in Guadalajara explaining the company's plans to expand its production lines in the city.

Flextronics most recently built a 176,500m2 manufacturing and logistics facility in the northern city of Ciudad Juárez, complementing other Flextronics facilities in Mexico such as its industrial park located in Guadalajara and a manufacturing facility in Aguascalientes.

The company employs more than 14,000 in Mexico.