Mexico closes U.S.-owned plant

[Oatsie]

Mexico closes U.S.-owned plant for allegedly refusing to sell ventilators to Mexican hospitals:

https://www.ctvnews.ca/world/mexico-closes-u-s-owned-plant-for-allegedly-refusing-to-sell-ventilators-to-mexican-hospitals-1.4891971

[vetteforron]

I guess that's ok but, how about the people working there. No jobs. 

[bmh]

 think it is a British firm..

[Mainecoons]

You're the second one to put up this story.  Please read it carefully.

First, the plant is owned by a U.K. company. 

Second, the plant is operating under rules that specifically prohibit it from selling its production in Mexico.

Quote

The company did not immediately respond to requests for comment. Industry sources have argued the factory is an export-only plant that operates under special rules that allow it to import raw materials and parts duty-free, on the condition they be re-exported and not sold on the local market.

Headquartered in Minneapolis, Minnesota, the company is owned by U.K.-based Smiths Group plc.

There was no formal waiver of the rules governing this plant's requirement to export all production.

Also, MEXICO didn't close the plant down, a Mexican state government did so illegally.  That state government has no right to change the rules under which it operates.  Only the national government can do this. 

Quote

The northern Mexico border state of Baja California closed a plant run by the Anglo-American health care firm Smiths Medical Friday for allegedly refusing to sell ventilators to Mexican hospitals.

 

[AlanMexicali]

16 minutes ago, Mainecoons said:

You're the second one to put up this story.  Please read it carefully.

First, the plant is owned by a U.K. company. 

Second, the plant is operating under rules that specifically prohibit it from selling its production in Mexico.

There was no formal waiver of the rules governing this plant's requirement to export all production.

Also, MEXICO didn't close the plant down, a Mexican state government did so illegally.  That state government has no right to change the rules under which it operates.  Only the national government can do this. 

 

Baja Morena Party state government = AMLO closed the plant. He is running the show.

 

[Mitch]

If you read the article,  it says owned by a UK company. headline is, as is so often the case very misleading. 

[Bisbee Gal]

The Mexican plant is owned and operated by a US subsidiary company, Smiths Medical which is headquartered in Minnesota.  Smiths Medical is part of the world-wide conglomerate, Smiths Group which is based in London.  

Because it is a US entity, Smith Medical appealed to the US ambassador to Mexico for assistance (not to the British ambassador to MX), as disclosed in the article.

Smiths Medical Overview

• Website www.smiths-medical.com.
• Headquarters Plymouth, MN.
• Size 5001 to 10000 employees.
• Part of Smiths Group.
• Founded 1940.
• Type Subsidiary or Business Segment.
• Industry Health Care Products Manufacturing.
• Revenue $1 to $2 billion (USD) per year.

[lcscats]

1 hour ago, Bisbee Gal said:

The Mexican plant is owned and operated by a US subsidiary company, Smiths Medical which is headquartered in Minnesota.  Smiths Medical is part of the world-wide conglomerate, Smiths Group which is based in London.  

Because it is a US entity, Smith Medical appealed to the US ambassador to Mexico for assistance (not to the British ambassador to MX), as disclosed in the article.

Smiths Medical Overview

• Website www.smiths-medical.com.
• Headquarters Plymouth, MN.
• Size 5001 to 10000 employees.
• Part of Smiths Group.
• Founded 1940.
• Type Subsidiary or Business Segment.
• Industry Health Care Products Manufacturing.
• Revenue $1 to $2 billion (USD) per year.

Nice detailed post.

[Eric Blair]

 my question would be, did The Mexican government or whoever would be in charge of this, try to negotiate with the company to have some kind of work around?

I would think that something could have been worked out where the plant could sell to a straw man in the United States who then authorized supplant to deliver the product to its agent, ie The Mexican government or buyer in Mexico who wanted the units. it wouldn't have to be the entire production.

Often the best way to  "win" is by compromise. 

[TelsZ4]

If you read the entire story it’s is illegal for the company to sell their products in Mexico.  They were allowed to set up up shop in Mexico under a special treaty that made it illegal for them to distribute their products here.  I’m assuming it was so they didn’t  compete with other Mexican companies making the same product...

[Mainecoons]

2 minutes ago, TelsZ4 said:

If you read the entire story it’s is illegal for the company to sell their products in Mexico.  They were allowed to set up up shop in Mexico under a special treaty that made it illegal for them to distribute their products here.  I’m assuming it was so they didn’t  compete with other Mexican companies making the same product...

Exactly.  Arbitrary and capricious actions like this don't help the country attract business investment.  This country needs jobs and a lot of them and with everyone realizing China is a bad idea the opportunity exists to attract relocating plants from there to here.  This won't help.

[moderator-2]

Moving to Mexico General.

 

[Eric Blair]

10 hours ago, Mainecoons said:

Exactly.  Arbitrary and capricious actions like this don't help the country attract business investment.  This country needs jobs and a lot of them and with everyone realizing China is a bad idea the opportunity exists to attract relocating plants from there to here.  This won't help.

I was just thinking there could be some compromise workout under the current emergency situation.