Mabamex expansion in Baja California
By Adina Moloman
Sources: Invest in Baja, SEDECO
According to the Law for the Promotion of the Competitiveness and Economic Development of Baja California[1] the State Governor offered, last month, 8.8 million Mexican pesos, as a economic incentive due to Mabamex expansion.
The Law for the Promotion of the Competitiveness and Economic Development of Baja California consists in offering to new or established foreign/local companies, tax free benefits or non tax benefits.
In the first category there are included expansion projects or technological investment projects from multinational companies (which is the case of Mabamex); but not only, there two others situations: reuse or treat 100% of their water consumption, with a 30% exemption from the monthly payment as long as the company reuses or treats the water; and hire disable or 60+ year-old people, with a 100% exemption in the Payroll State Tax as long as they are hired.
The Mabamex, Mattel plant is located in Tijuana Baja California.
This Mexico Maquiladora plant was moved to its current location in April 1999, but was established in the region in 1981. The plant is dedicated to the production of Barbie dolls and the Fisher Price line.
The expansion represents a 5.7 million dollars investment, which will generate 552 new jobs. The expansion is a result of production lines transfer from China.
Mabamex currently employs approximately 3,500 direct-labor workers during peak production periods.
With almost 4,000 employees, not only will increase Tijuana manufacturing jobs, but also will convert Mabamex, one of the largest manufacturing company in Baja California in terms of employment generation.
[1] The Law for the Promotion of the Competitiveness and Economic Development of Baja California was pass by the State Congress on June 10th, 2005.
The aspects analyzed to determines the economic incentive are: number of jobs, incorporation of students in the production processes as well as disable and 60+ year-old people; quality of jobs; amount and origin of the investment; amount invested in technology; national and local Suppliers; market access; place of establishment.