In a drive to invest in leaner facilities, Saint-Gobain Calmar Inc. will shift injection molding from its California headquarters to a new site in Mexico and also move to a more modern plant in Missouri.
Both decisions were made after Calmar conducted a review of its business, said company President John McKernan in an Aug. 20 news release. Calmar injection molds nonaerosal dispensing and spraying systems, products that have been affected by foreign competition and strains on profit margins, Calmar officials said.
The company, based in City of Industry, Calif., decided that continued production at its California plant was cost-prohibitive due to the high costs of such external factors as sales and property taxes, insurance, energy and workers' compensation, McKernan said.
The company will retain its offices and research and development facility in City of Industry.
``This is a highly competitive industry, and there is constant price pressure locally as well as from overseas,'' McKernan said.
To counter that, the company will transfer production from the 117,000-square-foot California facility to a new plant in San Luis Potos¡, Mexico. The plant is not scheduled to break ground until July 2004 and will open for business by the end of 2005, said Calmar spokesman William Seiberlich.
It is slated to have a minimum of 120,000 square feet, he said.
The California manufacturing plant will close in about two years, Seiberlich said. The Mexico plant will be built in stages over an extended time period, he added. He would not disclose investment costs.
The company also plans to move out of its existing molding plant in Lee's Summit, Mo., to a new, highly automated site nearby, Seiberlich said. The company is scouting for sites, he said. The Lee's Summit facility, with 350 employees, makes trigger and finger sprayers.
``The products manufactured at the Lee's Summit facility are subject to intense, competitive-pricing pressures from Asia, and it is our commitment and belief that we can compete on a global basis in the Kansas City [Mo.] area,'' McKernan said.
Calmar is a subsidiary of Paris-based Cie. de Saint-Gobain and recorded about $300 million in sales last year.