Benecke-Kaliko AG has announced it has started work on a new 7,000-square-meter automotive foils production facility next to its existing plant in San Luis Potosí, Mexico. The company is investing 11.4 million euros ($12.8 million) in the venture.
Benecke-Kaliko is a business unit of ContiTech AG, part of German auto supply giant Continental AG.
The new plant is expected to begin making Tepeo and Tepeo 2 foils for the North American market in the third quarter of 2016. The company states that its long-term plan is to increase the annual output from its current 7 million square meters of sheet goods to 11.5 million by 2019 and to employ an extra 100 people.
Tepeo and Tepeo 2 are based on polyolefins and have a lower density than standard cover materials, resulting in a weight saving of up to 50 percent states Benecke-Kaliko.
CEO Dirk Leiss, Benecke-Kaliko said: “All of our customers in the NAFTA region will benefit from the new production line. This is our response to the continued growth in demand for high-quality soft-touch surface materials for the automotive industry in this region.”
Benecke-Kaliko has been manufacturing Acella, Yorn, Tepeo and Tepeo 2 foils at the site in Mexico since 2009 where it currently has more than 200 employees