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Industria Electrica de Mexico - Lehman Brothers Collection

Industria Electrica de Mexico

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The Industria Electrica de Mexico was formed in Mexico in 1945 as a result of collaboration between the American investment-banking firm Kuhn, Loeb & Company and Banco Nacional de Mexico, with Westinghouse Electric holding approximately a 10 percent interest in the company. When Industria Electrica was created it was hailed as the largest privately owned industrial corporation in Mexico, with capital amounting to $15 million. It was also regarded as one of the first major steps in the postwar industrialization of Mexico.

After the public offering, the company built a manufacturing plant outside Mexico City at a cost of about $10 million. Equipment and machinery for the plant, including machine tools, furnace cranes, boilers, and electrical installations, was bought in the United States. The new plant began to manufacture or assemble motors, transformers, generators, refrigerators, home radios, and household appliances. The company also signed an agreement with Westinghouse for licensing and technical assistance and took over the Mexican branch business of the Westinghouse Electrical International Company.

The manufacturing plant for Industria Electrica reached full production by late 1947, and the company was aided in the first five years of operations by being exempt from certain import duties and income taxes in Mexico.

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