Nuevo Laredo continues showing expansion of warehouses, job creation for border city

NUEVO LAREDO — Growth comes in many different forms, shapes and sizes.

Industrial center and maquiladora development remains a winning way for this Mexican border city.

Up to eight large-sized industrial parks are spread across Nuevo Laredo as warehouses rise within them catering to international businesses.

Changing this city’s course and image is a goal of the Institute for Competitiveness and International Commerce of Nuevo Laredo (ICCE), led by director José Daniel Covarrubias.

"ICCE was created in April 2009 for the city government to get input from the civilian society," Covarrubias said.

"Our board is made up of nine people from different groups and four local government officials."

Covarrubias said ICCE was established by an ordinance under the municipo (local government) and the state of Tamaulipas.

It is funded by the City of Nuevo Laredo.

There currently are at least eight industrial centers within Nuevo Laredo, including Oradel, Finsa, América, O.L. Longoria, Río Grande, Los Dos Laredos and Los Fresnos.

Oradel has been one of Nuevo Laredo’s ever-growing centers.

"When I got here three years ago, Oradel was half the size it is today," Carlos Montoya, Oradel managing director, said.

"Oradel has opportunities for companies to help them grow.

Businesses are consolidated here or at other parks."

Oradel covers 3,200 acres (1,250 hecterias) and is filled with commercial and industrial business, a university, schools, day care center and housing for its employees.

Medline Industries, along with Caterpillar and Rheem, calls Oradel home.

"We started in 1988 with a small plant in Nuevo Laredo," said Jaime Herrera, Medline vice president of operations.

"In 2003, we moved into a new 217,000-square-foot facility with 500 employees.

This year, we’re shifting into a 400,000-square-foot warehouse with 1,000 employees.

We’re looking to consolidate more business."

Medline makes surgical packs and ships them to Medline-owned distribution centers in the United States through Laredo.

"Mexico brings competitiveness," Herrera said.

"The city has been a good business partner and we are a stable company here."

He added that a stable workforce makes it possible for Medline to produce quality products.

Orfelio Quintanilla, Oradel founder (now vice president), believes the city needs to be industrial in order to have more jobs.

"All Nuevo Laredo lives for is the customs business," Quintanilla said.

"Customs has changed around the world. The only way to grow any town is to industrialize.

This provides many jobs for people to have homes and become more involved in commerce."

Covarrubias said all maquiladoras within Nuevo Laredo pay 1½ times minimum wage and up for entry-level positions. He said minimum wage is equivalent to $4.05 U.S. per day.

"Who is going to give you 1,000 jobs like Medline?" he asks.

"Mexico has to grow from a manufacturing focus into research and development areas because that’s where higher-paying jobs are located.

Engineers are out there looking for R&D work. Rheem has 50 engineers in place right now."

Covarrubias, Quintanilla and Montoya were insistent that Nuevo Laredo’s population was around 330,000 — nowhere near the 500,000-750,000 population numbers commonly attached to the city.

"There’ll be a census taken in Mexico this year," Covarrubias said.

He added the city’s active workforce is made up of 75,000 people and "out of that, between 18,000 and 25,000 are employed in the manufacturing business; another third are involved in transport and international trade."

Two new prospects are on Nuevo Laredo’s radar: an Asian investment firm that wants to set up a maquila involving the paper industry and a U.S. company that would re-manufacture buses and ship them to the states. Combined, both prospects would create between 500 and 900 new jobs.

"There is a loyal maquiladora base here in Nuevo Laredo," Covarrubias said.

"When companies come and establish a place, they stay here.

Other places may get maquilas, yet those companies will pull out of the city in three years.

What is helpful for us is having those maquilas expand. Cat Logistics (a subsidiary company of Caterpillar) is planning a February opening of its plant within Oradel."

And what about safety issues within Nuevo Laredo?

Montoya said, "Nuevo Laredo is a very calm city and nice to live in.

(Montoya moved from Monterrey to work for Oradel.) I believe coming here to Nuevo Laredo and Oradel has been a great experience for me personally."

(Joe Rutland may be reached at 728-2529 or jrutland@lmtonline.com)