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US and international companies move to Mexico

There is an employee welding a thick piece of metal while sparks fly.
18 Jun 2014

Several companies have begun to take advantage of the opportunities that come from expanding to Mexico and building in maquiladoras. For example, international plastics company Mecaplast Group plans to open another injecting molding facility in Mexico in the next 18 months, according to Plastics News. The plant will feature 10 injection molding machines.

"We are still in negotiations but it looks like it will be in Silao," Mecaplast Chairman Thierry Manni told Plastics News on June 4.

The first factory that Mecaplast built in Mexico was in Puebla. Silao is 300 miles northwest of that city, according to the source, allowing for easy transport between them. Additionally, there are several car companies in the area around Silao and Puebla, such as General Motors, Volkswagan AG, Chrysler and Nissan.

At the unveiling ceremony in Puebla, Mecaplast CEO Pierre Boulet expressed dissatisfaction with the Mecaplast factory in Brazil that opened in 2000.

"Brazil is very difficult," Boulet said to Plastics News. "We have a very unstable [labor] environment there."

The company has also made improvements to its original factory in Puebla. For example, the factory has re-arranged all of its industrial presses. The factory contains 14 Krauss Maffei presses, along with seven Husky and two Netstal presses.

The improved layout makes it easier and faster to do work. The design is so good that the company does not allow photographs to be taken inside.

"This is the sort of press layout you only read about in magazines but you rarely see in real life," said the senior representative of a European press manufacturer who was on a tour with representatives from Plastics News.

The plant's production manager, Miguel Ángel Flores Botella, said that what once took an hour now only takes a matter of minutes.

Mexico is good Not only plastics companies, but for cosmetics companies as well
Mexican manufacturing skills do not only apply to auto parts and injection-molded plastics production. Mexican workers are skilled at many different kinds of labor. Topline, for example, is a cosmetics company that opened a Mexican factory in 2010. The company has recently moved from that factory to an even bigger one in Reynosa, Mexico, according to Cosmetics Design.

Because of the move, Topline will be able to deliver its product faster and reduce costs.

"Our new facility is part of Topline's commitment to customers to be a valuable global partner, operation [sic] manufacturing facilities worldwide," said Topline president Charles Tang. "With the expansion customers in the region will have shorter supply chain lead-times at a competitive price."

The new facility is very close to the old one, which was also in Reynosa. The factory is an additional 80,000 square feet, which means the building is three times the size of the previous factory. The factory will have injection molding and blow molding equipment, along with an expanded filling and assembly department.

Those who want to benefit from opening a factory in a maquiladora in Mexico can get help from an offshore shelter company like The Offshore Group. Such a company would help a business to expand while minimizing hassle.

The Offshore Group: You Manufacture ... We Do The Rest.