The Industrialization of Nogales, Sonora

After the development that agroindustry had in Sonora (The Yaqui Valley, for instance) between 1940 and 1955, starting in the 60's the Federal Government began the economic development of the border regions.

Because the border doesn't have the possibility of another type of production, the decision was made to incorporate the border to the National Economy, through the industrialization and exportation of products assembled in the border itself.

This is how the National Border Program (PRONAF) was formed in 1961 through a trust agreement between Mexico's Secretaria de Hacienda y Credito Publico and Nacional Financiera.

The symbol of this new socioeconomic order in Nogales would be the Main International Gate, which was built by the company of Architect Mario Pani, while the project of the International Arches was finished on July 19, 1962, under the direction by Architect Hilario Galguera.

During the first years of PRONAF, Nogales received special attention (Antonio Bermudez, PRONAF Director, was married to Hilda, daughter of Manuel Mascareñas). That is how Nogales received almost 20% of the total PRONAF budget.

In 1963 the first Assembly Plant was installed in Nogales, COMCO of Mexico, with a starting capital of $500,000, and 18 workers.

In 1965, following the recommendation of Antonio Bermudez, the Program of Border Industrialization was established to promote the economy of the region, to generate foreign exchange, and the improving Mexico's technology.

As a consequence, the State Government, under Luis Encinas (1961-1967) created the Directorate of Industrial Promotion in 1961, which throughout those six years achieved that a considerable number of Assembly Plants relocate in Nogales, among them Motorola, the second one installed here (1967),

In March, 1967, the State Government expropriated 60 Has to create the Industrial Park of Nogales, with the idea of promoting industrialization through the "mechanical and electronic assembly of products, mainly for export..."

On April 9, 1969, the State Governor, Faustino Felix Serna (1967-1973) signed an agreement with the Industrial Park of Nogales Mercantile Society, S.A, de C.V., through which the society would receive from the Nogales Government 46.1498 Has in rent for 30 years, to build and operate the industrial park. Richard Campbell, the main actor behind the Nogales park, had already worked by then in California for Cal Pacifico, and his success in Nogales was due mainly to the idea and implementation of the shelter plan.

When the 30 years period of rent ended in 1999, the municipal government again oppened to the best bidder the rent of the park, and the same company won the rent contract, although with better terms for Nogales.

Then, more industrial parks also opened: Terrazas del Cid, of Antonio Dabdoub, with 9.5 Has; San Ramon with 13 Has already built, and Industrial City of Nogales, of Hector Monroy Rivera, with 23 Has of total surface.

More recently, two more parks were developed: San Carlos, which in 2004 had a total surface of 61.7 Has, of which by 2007 had 31.7 still in reserve to be built.

Finally, in the South extreme of Nogales, the Nuevo Nogales Industrial Park was also opened, near the new Fiscal Recinct, with a total area of 207 Has, with a total of 99.5 Has unbuilt by 2007.

(Data from the Webpage of the Council for the Economic Promotion of Sonora, consulted in June, 2007)

Besides these parks, there are other smaller industrial areas in Nogales-

When the industrial development of Nogales began, SONITRONIES-COLLECTRON, who had it's main offices in Tucson, Arizona, inaugurated the Shelter Plan, which is some kind of subcontractor for the production of US Companies who need assembly labor in Nogales.