MGS Mfg. Group Inc. has expanded outside the United States for the first time, buying an injection molder in Chihuahua, Mexico, to create its new TecStar de Mexico.
TecStar is the custom molding operation for Germantown, Wis.-based mold maker MGS, with facilities in Germantown; and in Libertyville and Antioch, Ill.
With the expansion to Chihuahua, the company has picked up a broader customer base and an ability to work with its existing customers that already operate in Mexico and the southern United States.
``We have been looking at the region for six years,'' marketing director John Berg said in an April 16 telephone interview.
In Chihuahua, MGS acquired a privately held injection molding company with 30 Negri Bossi injection presses, ranging from 28-770 tons of clamping force. The operation manufactures parts for the electronics, consumer products and automotive industries, MGS said.
MGS already is adding another four Negri Bossi presses at the Mexican site, as well as considering further structural expansions, according to an April 2 news release.
Berg would not disclose details about the previous owner of the Mexican company, except to say that members of the former management team have remained on-site to assist MGS.
The deal closed Jan. 1.
The 75,000-square-foot facility employs 150 and has in-house tooling for mold repairs. In addition, it offers sonic welding, pad printing, insert-molding machines and manual assembly.
The site also has an adjacent 20,000-square-foot warehouse.
The firm will use the foothold in Mexico to supply other customers in the area, and potentially incorporate hand assembly or packaging for some parts made in the U.S. - freeing up floor space in Wisconsin and Illinois for development work on new and value-added products, Berg said.
``By establishing a location in Mexico vs. overseas, we are able to act responsibly to our customers' needs and deliver shipments within a few days, therefore allowing customers to keep their inventory levels at a minimum,'' said MGS Vice President David Sansone.
TecStar de Mexico is a cost-effective manufacturing solution for MGS, he said.