MEXICO CITY — A Mexico City extruder is expanding capacity by 50 percent, betting on estimates that construction and agriculture finally are recovering from the nation's economic recession.
Pl sticos Rex SA de CV makes PVC pipe and tubes at three plants in the capital city, Monterrey and Poncitl n, just outside Guadalajara. The firm is adding lines to all three plants.
``Our two main products are PVC pipes for irrigation and for construction,'' said Abelardo Magnani, manager of the Mexico City plant. Each plant produces both types of pipe, ``given we have a good market share'' in the regions near the plants, he said.
Magnani did not disclose sales figures or the company's investment in the expansion. He did say, in a March 10 telephone interview, that the expansion should be complete by midyear.
The firm's equipment includes Krauss Maffei, American Mapland and Cincinnati Milacron extruders.
Pl sticos Rex also agreed to buy US$720,000 worth of materials-handling systems from Mould-tek Industries Inc. of Scarborough, Ontario. The agreement covers the next two to three years, depending on how the extrusion business develops.
``The first of the Mould-tek systems is scheduled to arrive in April, and will be installed in the Poncitl n plant,'' Magnani said.
The system will be designed for easy expansion.
The firm also is obtaining ISO 9000 certification, Magnani said.
Pl sticos Rex was established in Mexico City in 1961, and in 1981 was acquired by Grupo Cydsa, also known as Celulosa y Derivados SA de CV, a Monterrey-based chemical, packaging and fibers company.
The firm has 700 employees, making it large by Mexican processor standards.
According to Instituto Mexicano de Pl stico Industrial, a local research firm, about 15 companies in Mexico produce PVC pipe for construction applications, using a total of 198.4 million pounds of PVC resin per year. Of that total, 66.7 percent or 132 million pounds are for pipes used for drinking water and drainage.
