Avance Industrial planning $1 million tech center in Mexico

By Stephen Downer
Correspondent

Published: September 12, 2013 2:36 pm ET
Updated: September 12, 2013 2:45 pm ET

Image By: Stephen Downer Alexander (left) and Peter Kramer of Avance Industrial SA de CV

Related to this story

Topics Machinery, Mexico
Companies & Associations Sumitomo (SHI) Demag Plastics Machinery GmbH

MEXICO CITY — Avance Industrial SA de CV, a major sales rep firm for Sumitomo (SHI) Demag Plastics Machinery GmbH, plans to open a $1 million-plus technical center in the industrialized Bajío region of west-central Mexico in 2014.

Competitors KraussMaffei Technologies GmbH, Engel Holding GmbH and Arburg GmbH + Co KG have all launched similar operations in the same area in the past three years.

Avance managing director Peter Kramer said the new facility will be used for demonstration purposes and for “training our own technical staff members and those of our customers.” The center will include a mold-testing service.

There are no plans, however, for the company to vacate its headquarters in the south of the Mexican capital. “We think it is unwise not to be in the Mexico City metropolitan area,” Kramer said.

The company also represents auxiliary equipment makers Frigel Firenze SpA, Motan-Colortronic (part of Germany’s Motan Group) and Swiss company Regloplas AG, among others.

Kramer, who arrived in Mexico as a 20-year-old Hamburg, Germany-educated foreign trade graduate in 1960, established Avance Industrial with two Mexican partners in 1963. He claims the company is the oldest Demag representative agency anywhere and the most successful.

In Mexico it has sold 1,400 Demag injection molding presses, the largest of which has a clamping force of 1,500 metric tons, in addition to a total of 570 machines made by German manufacturers Stübbe (of which it sold 300) and Ankerwerk (270) prior to the purchase of their injection molding businesses by Schwaig-based Demag.

The Kramer family is now Avance Industrial’s sole owner. It employs a full-time staff of 27, including Kramer’s son, Alexander, a plastics engineer who has a degree from Darmstadt’s University of Technology and is the company’s technical director.

With a current annual turnover of between $18 million and $20 million, its sales commissions have grown at an average of between 7-10 percent a year since Mexico’s recovery from an economic crisis in 1995, according to Kramer.

“We are extremely optimistic [about the future],” he told Plastics News. “I feel the same today as in those exciting early years as there are more and more new applications for plastics. Quite simply we see a fantastic future for plastics for many, many more years.”

For example, he said, Japanese auto industry suppliers such as Denso Corp., Nifco Inc and Kasai Kogyo Co Ltd. are becoming heavily involved in Mexico’s already sizable yet expanding light vehicle assembly industry, attracted by new multimillion dollar investments by Japanese car makers Mazda Motor Corp., Honda Motor Co. Ltd. and Nissan Motor Co. Ltd., plus German luxury auto maker Audi AG.

Mazda, Honda, Nissan and Audi are building light vehicle assembly plants in the country, which already has 12. In the case of Mazda and Audi the facilities will be their first in Mexico. Mexico produced 1,986.579 cars and light trucks in the first eight months, 4.4 percent more than in the same period in 2012, according to auto industry association Amia (Asociación Mexicana de la Industria Automotriz AC).

High speed applications in the packaging industry offer further opportunities, said Kramer, as do the electronics and domestic appliances sectors.

“We have a technical coordinator and seven field technicians,” he added, “and we’re definitely planning to increase the number of field technicians.”

The company operates a service operation in Querétaro, which is among the Bajio’s largest cities. But Avance Industrial is considering a number of locations for the new center and will not necessarily choose Querétaro.

“Our biggest customer in injection molding is Procter & Gamble Gillette and they are in Irapuato,” Kramer said.

Avance Industrial has 70 machines either installed or in the process of being installed in P&G’s Milenio plant in Irapuato, he added. “Most are very sophisticated and some are two-component machines. The biggest ones have a clamping force of 420 tons.”

More than 400 guests recently attended a Mexico City banquet to celebrate Avance Industrial’s 50th anniversary.


Comments

Avance Industrial planning $1 million tech center in Mexico

By Stephen Downer
Correspondent

Published: September 12, 2013 2:36 pm ET
Updated: September 12, 2013 2:45 pm ET

Post Your Comments


Back to story


More stories

Image

Making the most of complexity

August 22, 2014 1:02 pm ET

In the global market for injection molded parts, custom molders have tried a million different ways to differentiate themselves from the pack. Make...    More

Image

Reiloy Westland to build new headquarters

August 22, 2014 12:53 pm ET

Reiloy Westland Corp. will build a 45,000-square-foot headquarters factory, as the Kansas maker of screws and barrels expands under the ownership of...    More

Image

Recycled HDPE prices climbing

August 22, 2014 11:26 am ET

North American selling prices for recycled grades of high density polyethylene resin have increased in recent months because of tight supplies of the ...    More

Image

VDMA clarifies Tokyo statement about China

August 21, 2014 2:57 pm ET

Some remarks that VDMA President Reinhold Festge made at a recent press conference in Tokyo turned into sensational headlines in China.    More

Image

Plastics News Now: Plastic execs take the ice bucket challenge

August 21, 2014 6:00 am ET

The North Face is using more recycled PET bottles, we check out advancements in prosthetic legs at the IDSA conference and watch those in the industry...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

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

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

More Events