Interior automotive parts supplier Groupe Plastivaloire is moving into North America, set to start up production at its latest manufacturing plant in San Luis Potosí in central Mexico before the end of this year.
The France-based injection molder, which already operates 26 production units across Europe and in Tunisia and Turkey, is locating its first North American operation at the heart a major automotive manufacturing zone.
Mexico is second only to the U.S. in the continent among the largest producers of motor vehicles and is ranked seventh ranked worldwide. Meanwhile, San Luis Potosí state is home to many of the world's top automakers, Plastivaloire pointed out.
Audi AG recently established an assembly plant in San Luis Potosí to join others already being operated by groups including Nissan, Chrysler, Ford, Fiat, General Motors and Volkswagen. They are set to be joined by other German firms, with Mercedes Benz expected in 2018 and BMW in 2019, the French supplier said.
Its launch of new facility is consistent with the Langeais, France-based group's current policy of international expansion. “It is in line with [Plastivaloire's] strategy of geographical diversification, allowing it to cement its position among the world's leading plastics industry players and work very closely with client contractors,” it said in a June statement.
Plastivaloire, which already runs more than 600 injection molding machines ranging from 25 – 2,700 metric tons of clamping force, intends to ramp up Mexican output at the facility, accelerating production to full capacity through 2017, the firm said.
This region of Mexico is also home to leading OEMs in other industrial sectors which Plastivaloire believes will generate fresh opportunities for “the group's non-automotive activities in line with its strategic roadmap."
Group business is dominated by the automotive sector which currently represents about 70 percent of its overall sales, but it also produces molded components for the consumer electronics and household appliance markets.
It stressed the Plastivaloire Mexico will allow it to “reinforce its position with its longstanding clients and win over new market share,” Plastivaloire predicted.
The group saw its sales grow 26.7 percent in the first quarter of the current year ending this September, reaching a record of more than 134 million euros ($150. 5 million). Over the first half of 2015-16 Plastivaloire posted sales of 285.3 million euros ($320.6 million), up 24.2 percent, partly reflecting recent acquisitions.