MEXICO CITY — Elamex SA de CV, which claims to be Mexico's largest contract services manufacturer, has expanded its plastic molding and added metal stamping.
The company on July 1 bought all the assets of Eurotec de México SA de CV, a Ciudad Ju rez, Mexico, firm that will become a new plastics and stamping division of Elamex.
Terms were not disclosed. Hector Raynal, Elamex chief executive officer, said the deal ``will allow Elamex to provide a wider spectrum of manufacturing services, and will allow the company to access new customers.''
The acquisition gives Elamex greater injection molding capabilities; it occasionally had injection molded products for a few customers. New processes that Elamex picked up in the deal include, metal stamping, powder-coat painting, design, material analysis and specification, and die maintenance.
Eurotec reported 1996 sales of $7.9 million. It has a 92,000-square-foot plant and will initially serve eight customers, including Hasbro Inc., Honeywell Inc., Eureka Co. and Toshiba America Inc.
The firm has 14 injection molding presses, including five Mitsubishi models with clamping forces of 430-672 tons, and nine Engels with 85-500 tons of clamping force.
Raynal, in a telephone interview from Elamex headquarters in Ciudad Ju rez, said his company now specializes in ``manufacturing goods that have already been designed,'' for example building a battery re-charger for Black & Decker Corp. Many of their current clients have been requesting additional processes.
Gabriel Portillo, operations director of the new plastics and stamping division, said the new services ``will open us to a bigger market, and production can become more integrated.'' He added that the addition ``should permit Elamex to use more of its installed capacity.''
In the wake of the peso devaluation, Elamex is using only 40 percent of its installed capacity, but ``we hope to have that 60 percent in use by the end of the year,'' Portillo said.
Elamex was established two decades ago, and claims it is the biggest contract manufacturer service provider in Mexico, and fifth worldwide. It has 14 plants.
The company is listed on the Nasdaq exchange.
Raynal said in a news release announcing the acquisition that the deal is the ``first step in accelerating the growth rate of the company through further acquisitions.''
He did not comment on what sectors or activities the company plans to target next.