Evco wants to continue its growth in Mexico

By Stephen Downer
Correspondent

Published: June 18, 2014 1:46 pm ET
Updated: June 18, 2014 1:57 pm ET

Image By: Stephen Downer From left: Dale Evans, president of Evco Plastics Inc., with his partners in Evco Plastics de Mexico Carlos González Sr. and Humberto Garza Dávila.

Related to this story

Topics Injection Molding, United States, Mexico

MONTERREY, MEXICO — Custom injection molder Evco Plastics Inc. is mulling plans to open a fourth plant in Mexico, senior executives say.

“We are going to have a fourth plant in Mexico at some stage,” Dale Evans, the DeForest, Wis., company’s president told Plastics News. “[But] it won’t be next year.”

“We will probably look [for a site] in El Bajío,” said Carlos González, sales director of Evco Plastics de México S de RL de CV, Evco’s Mexican subsidiary. El Bajío is a rapidly expanding industrial region in north-central Mexico.

And that may not be the end of Evco’s growth south of the U.S. border, where three facilities — two in Monterrey and one in Ciudad Juárez — opened between 2001 and 2007. The plants now account for 30 to 35 percent of 50-year-old Evco’s $130 million in total annual sales, Evans said.

“We need to think about a fifth plant [in Mexico] also,” chipped in Humberto Garza Dávila, the Mexican subsidiary’s president who is also one of Dale Evans’s two partners in Mexico — the other one being Carlos González’s father, Carlos González Sr.

According to Evans, who accompanied Plastics News on a tour of Evco’s Monterrey 1 [or M1] facility, Evco’s Mexico operations are growing 20 percent a year while in the United States growth is close to 12 percent. Evco has nine plants in the United States, Mexico and China.

The M1 plant, opened in 2001, covers 72,000 square feet and employs 53 machine operators and 23 technicians, divided between machine and tool technicians. The plant runs three shifts a day, six days a week.

Its 20 presses, 15 of which are electric, have a clamping force range of 23 to 1,100 tons. They are Toyos, Milacrons and Nisseis.

Alfredo Elizondo Decanini, director of operations in Monterrey, has overseen the introduction of what he described as “a lean and mean manufacturing process,” whose elements include a Syscon-PlantStar production monitoring system and a production leveling system.

“We had help for three months to establish the system, which has been in our hands for three years,” said Elizondo. “We have 50 different efficiency indicators for this facility.”

Sales director Carlos E. González, left, director of operations in Mexico Alfredo Elizondo Decanini, center, and marketing director Anna Bartz.

“Our global customers demand the same system [of manufacturing] and the same quality” in all plants, added González Jr, explaining the presence of PlantStar.

“We knew we had to do something different after the 2008 economic crisis,” he said. “We did this to try to reduce our costs and give our customers more value.”

Evans said $40 million worth of new business will be handled by the Evco group in the United States, Mexico and China in the next 12 to 18 months.

The M1 plant supplies customers in such fields as electronics. A typical product is housing for control panels.

Having Mexican partners has paid dividends for Evco in many ways but especially when it comes to retaining staff. The M1 and M2 factories are located not within industrial parks, where most multinational operations are found, but in a residential area.

“We take care of our people. We give them nice working conditions and salaries. We invest a lot of money and time in training. Two percent of Evco Mexico’s turnover goes into training,” said Carlos González.

Garza Dávila said that Evco has learned to “take advantage of the institutions in Mexico that have training programs. … We are about to sign an agreement with Ciqa [Centro de Investigación en Quimica Aplicada]. They can help us with tooling, injection molding, new compounds, etc., through research they have done in plastics.”

He said it will be the first such agreement between the government-funded Ciqa and a plastics processor in the state of Nuevo León.


Comments

Evco wants to continue its growth in Mexico

By Stephen Downer
Correspondent

Published: June 18, 2014 1:46 pm ET
Updated: June 18, 2014 1:57 pm ET

Post Your Comments


Back to story


More stories

Image

Plastic Omnium makes China investment push

February 26, 2015 4:35 pm ET

Three of the six new plants that automotive molder Plastic Omnium SA plans this year will be in China, part of a broader push it’s making in...    More

Image

German molder picks North Carolina for US manufacturing plant

February 26, 2015 4:21 pm ET

German medical goods company Raumedic AG has chosen Mills River, N.C., for its first U.S. manufacturing site and U.S. headquarters.    More

Image

Plastics News Now: 'Cliff' from Cheers tackles skills gap with large donation

February 26, 2015 8:30 am ET

Actor John Ratzenberger takes a stand on American manufacturing, Monosol grows with the laundry detergent pod market, and film and bag recycling...    More

Image

Injection machinery makers showing off latest technology

February 25, 2015 2:18 pm ET

Lovers of injection molding — and automation — will find manufacturing nirvana at NPE 2015, when the Orange County Convention Center...    More

Image

Leader calls on Mexico’s plastics industry to spend more to defend plastics

February 24, 2015 6:13 pm ET

MEXICO CITY — Mexico’s plastics industry must spend more on recycling, advertising and lobbying to stave off anti-plastics legislation, a ...    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

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 billion 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

Upcoming Plastics News Events

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

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

More Events