n of the Article No to Order code Article No B4-FV-26-A Bevel-helical speed reduction gearboxes B4

Flender/Flender Gear Units/Bevel-helical speed reduction gearboxes B4

zation for nearly all major Mexican industrial sectors, except the Border Industrialization Program, has fallen below 5 percent. 4 The market for gears and gear products in Mexico is dependent on the recovery of the national economy. Since 1, Mexico' economy has experienced virtually no growth as result of $1 billion foreign debt and annual inflation rates as high as 1 percent during 1. The economy was also burdened with domestic interest rates hover- ing near 1 percent during 1-8. Mexican shipments of gears and gear products decreased steadily from approximately $7.0 million in 1 to $4.0 million in 1 (table -. Mexican domestic consump- tion, increasing significantly from $8.0 million in 1 to $1.2 million in 1, returned to the 1 level throughout 1-8. The increase in 1 can be attributed to one time rise in imports from the United States. In fact, the bulk of all gear consumption in Mexico during 1-8 consisted of imports. During 1-8, Mexican imports of such products grew by an estimated 4 percent, from $4.0 million in 1 to $6.5 million in 1 (table -. While these imports came primarily from the United States, industry sources indicate that several foreign firms such as Flender of West Germany, Hansen Transmissions of Belgium, and Sumitomo of Japan have also recently increased their exports of gears and gearing to Mexico. The recent liberalization of the foreign investment laws in Mexico is likely to result in future establishment of manufacturing facilities by some or all of these firms to serve select niche market segments. Major Japanese producers, such as Nissan, Honda, and Sanyo, have all indicated that they intend to increase production capacity in Mexico. Also, portion of such imports is attributable to gear products being assembled in 4 American Chamber of Commerce of Mexico, .., Directory of American Companies Operating in Mexico, April 1..1e id9e8, ic3a5, n5ute3r5S. ty Mexico- Country Study, 1, pp.1-1. 4 The World Bank, Mexi