US Farathane Corp. has grown into Mexico by acquiring Tepso Plastics Mex and its two facilities.
With the acquisition of Tepso Plastics Mex, US Farathane will have 13 plants in the U.S. and Mexico.
US Farathane Corp. has grown into Mexico by acquiring Tepso Plastics Mex and its two facilities.
Farathane picked up automotive injection molding components and assemblies plants in Monterrey and Romita, the Auburn Hills, Mich., firm announced Jan 13.
“Tepso is the perfect fit for our expansion into Mexico, and we are excited to complete this acquisition as a key part of our strategy to provide global solutions to our customers,” said Farathane CEO Andy Greenlee in a news release. “In addition to two first class facilities, we are gaining access to an outstanding group of highly skilled and dedicated employees that have driven world class results. With locations in northern and central Mexico, we are well aligned to serve our existing and future customers.”
The Monterrey facility, opened in 2005, runs 30 injection presses with clamps from 100 to 1,100 tons. Romita, established in 2012, has 25 presses from 100 to 1,500 tons. In total, the plants employ 550, Greenlee stated in an email correspondence.
The acquired factories make interior and exterior trim, instrument panel components, powertrain components, assemblies and black functional parts for a variety of Tier 1 auto plant suppliers.
Greenlee noted the Mexico operations have similar technical capabilities to other Farathane locations, including insert molding, color matching for interior trim and extensive press-side robotics. Assembly, heat stake, hot stamp, heat transfer and ultrasonic welding are other services offered.
The two Mexican sites ratchet up Farathane's number of operations in the United States and Mexico to 13. In spring of 2015 it opened its eleventh plant, in Riverside, Mo., near Kansas City.
Greenlee indicated his firm's customer list in the United States and Mexico offers opportunities for Tesco to pick up new clients. Mexico is becoming a major auto production hub, with new assembly plants opening and automakers seeking suppliers for the region.
Greenlee stated in a news release that his company will keep terms of the deal confidential.
A year ago, private equity firm Gores Group of Los Angeles paid more than $100 million to acquire Farathane. Farathane makes both functional and decorative plastics for the auto industry.