Nypro Inc. is boosting its presence in Mexico, announcing plans to open a plastics molding and contract manufacturing facility in Ciudad Juarez, Mexico, in the next few months.
In a related move, Nypro will close a facility in El Paso, Texas, which is across the border from the new plant. Nypro announced the changes Aug. 9.
The Clinton, Mass.-based company is refurbishing a leased, 116,000-square-foot facility in Ciudad Juarez. Nypro is recruiting workers, and plans to start with 60 employees and 25 molding machines.
The El Paso site has about 150 employees, and Nypro expects about 30 to transfer to Mexico. The rest will be offered severance pay and outplacement assistance.
Nypro expects to complete the move by early 2007.
``The real issue is the customer. There's so much growth in consumer/electronics and automotive in Mexico, and the customers want the parts to be closer,'' said spokesman Al Cotton.
Scott Walton, president of Nypro Automotive, said in a news release that the new operation will expand global market opportunities for the company. He said customers in the Americas currently are served by other Nypro plants in Mexico, Kentucky and Georgia.
``This new location will meet our customers' request for capacity in that area,'' Walton said.
Ciudad Juarez will be Nypro's fifth plant in Mexico. It has two plants in Monterrey, one in Chihuahua, and is involved in a joint venture with Sealaska Corp. in Guadalajara. Its Nypro San Diego division also does assembly in Tijuana, Mexico.
The new plant will enable Nypro to use maquiladora rules. Cotton said that the new plant will be a full-service manufacturing site, offering molding and other services.
Nypro has more than 15,000 employees and operates in 18 different countries worldwide.