Engel picking up business from Japanese auto suppliers in Mexico

By Stephen Downer
Correspondent

Published: May 14, 2013 2:32 pm ET
Updated: May 14, 2013 2:36 pm ET

Image By: Plastics News photo by Stephen Downer Peter Auinger, managing director of Engel de México SA de CV, based in Querétaro, Mexico.

Related to this story

Topics Mexico, Automotive, Machinery
Companies & Associations Engel Holding GmbH

QUERETARO, MEXICO — Engel Holding GmbH says its sales in Mexico of injection molding machines, robots and spare parts soared in fiscal 2012, boosted by purchases from a hitherto ignored source: Japanese Tier 1 auto parts suppliers.

"Some Japanese Tier 1s are starting to buy Engel injection molding machines," Peter Auinger, managing director of subsidiary Engel de México SA de CV, told Plastics News in an interview May 10.

In Japan the market is "still almost completely closed to Western technology. But in countries like Mexico, they [Japanese companies] have become more open. The long-term situation is that they are widening their business. They see the advantage of having other [non-Japanese] technology."

The Mexican automotive industry, which is flourishing, accounted for 65 percent of Engel's sales of $55 million in Mexico in fiscal 2012, 63.6 percent more than the $33.6 million the company sold in the country in fiscal 2011, according to Auinger.

He explained that the total included Engel equipment purchased outside Mexico and imported by Engel customers. The Mexican subsidiary's sales in the 2012 fiscal year ending March 31, 2013, was 399 million pesos ($32.8 million), up 33.8 percent from $24.5 million in fiscal 2011.

Privately owned Engel, of Schwertberg, Austria, manufactures presses whose clamping forces range between 28 and 5,500 tons.

In fiscal 2012 a Tier 1 auto parts supplier in Mexico purchased an Engel press with a clamping force of 3,400 tons. Auinger declined to name the purchaser but he believed it was the first of its type sold by Engel in the country.

"We can do better," he said, referring to Engel's prospects in Mexico. "Our main competitor from Europe is KraussMaffei and the economy in Mexico is driven very strongly by the automotive industry… KraussMaffei is historically strong in Mexico and South America. Our intention is to overtake them. We are going head-to-head."

KraussMaffei Technologies GmbH is based in Munich, Germany. Together German and Austrian manufacturers have 37.8 percent of the Mexican market for new injection molding presses and robots, according to Auinger, who added that the market is worth an estimated $195 million a year.

Engel has 1,500 presses plus about 350 robots installed in Mexico. Packaging, primarily consumer packaging, accounts for 15 percent of its business in the country, up from about 5 percent five years ago, while teletronics and medical account for 10 percent each.

Engel is "very optimistic and positive" about Mexico, said Auinger. "For the next two or three years we see no growth [forecast] changes." Mexico, he said, occupies fifth or sixth place among Engel's most lucrative markets. "I think Mexico will gain one place every year over the next two or three years."

Asked which sectors the growth will come from, he replied he was "almost positive" German auto maker BMW will build an assembly plant in Mexico and thus join nine rivals that already have or are in the process of building manufacturing facilities in the country. Ten of the world's 15 largest Tier 1 suppliers have Engel technology installed in their Mexican facilities, he said.

Mexico is the eighth largest producer and fifth largest exporter of light vehicles (to 60 countries) and the third largest supplier of cars and trucks to the United States, after Canada and Germany.

It lines up behind China, Japan, Germany, the United States and South Korea as the sixth largest producer of auto parts, generating revenues for the suppliers forecast to reach $80 billion by 2015, up from $70 billion in 2011.

Two issues in Mexico worry him, however: organized crime, including kidnappings and the massacre of innocents, and a shortage of skilled, specialized labor.

"The safety issue has to be brought under control," he said. "The second issue is that there's not enough skilled staff. Very soon there must be more space taken to train people, specialized people." But he added: "Mexico will solve the problem."


Comments

Engel picking up business from Japanese auto suppliers in Mexico

By Stephen Downer
Correspondent

Published: May 14, 2013 2:32 pm ET
Updated: May 14, 2013 2:36 pm ET

Post Your Comments


Back to story


More stories

Image

Humanoid robot provides inspection service with a smile

October 17, 2014 6:00 am ET

Everyone knows robots can improve production and quality. But no one says they can't show a little personality while they're working.    More

Image

Plastikon expanding in Kentucky

October 17, 2014 11:24 am ET

Automotive supplier Plastikon Industries Inc. plans to more than double the size of its production facility in Leitchfield, Ky.    More

Image

Momentive gearing up for some timely LSR sales

October 17, 2014 10:58 am ET

Momentive Performance Materials Inc. has plenty of time for customers at Fakuma — thanks to colorful new watchbands made with the firm's fiber-...    More

Image

Plastics News Now: Humanoid robot shows off skills at Fakuma

October 16, 2014 7:07 am ET

A workerbot, with a smile on its face, was a big attraction at Fakuma this week, plus a mostly composite helicopter takes flight and SPI is looking...    More

Image

Chrysler's Busse has a surprise for you

October 16, 2014 6:00 am ET

Chrysler Group's interior design chief Klaus Busse and his team enjoy hiding what they call "Easter eggs" throughout Chrysler Group vehicles for owner...    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events