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October 12, 2016 02:00 AM

Mecaplast invests in molding capacity in lower-cost countries

Stephen Downer
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    Stephen Downer
    Mecaplast CEO Pierre Boulet, left, and Philippe Vayssettes, the company's America business unit director, at the opening of its Silao, Mexico, plant.

    Silao, Mexico — Mecaplast Group executives spent Oct. 6 in Silao as it marked the opening of its second injection molding plant in the country — part of a planned expansion in lower-cost regions.

    Just four days later, the French auto supplier was announcing plans to buy Key Plastics LLC, a $415 million molder based in Livonia, Mich., with plants in the U.S., the Czech Republic, China and Germany.

    Both moves are part of a global expansion plan for Mecaplast that has also seen it growing in Romania, Morocco and Portugal.

    Silao marks its second manufacturing plant in Mexico, a $10 million injection molding facility in north-central Mexico that will make air intake systems for General Motors Co.'s Chevrolet Captiva in North America.

    The 59,200-square-foot facility will start full production in January and also will begin making cam covers for Nissan USA in 2018 and interior trims for BMW AG's 3 Series in 2019.

    Prior to the opening ceremony at the Guanajuato Inland Port industrial complex, which includes four industrial parks, Mecaplast CEO Pierre Boulet told Plastics News that the company has just bought a 5,000-square-meter (53,819-square-foot) plant in Mioveni, Romania, from where it will supply Dacia with injection molded components.

    He also said that Mecaplast is buying a facility in northern Portugal.

    “We have not finalized the deal but it will be finalized in about a month's time,” Boulet said.

    Stephen Downer

    Mecaplast Group's Silao, Mexico, employees.

    All of this comes on top of the company's announcement last week that it plans to launch a car component injection molding plant in Kenitra, Morocco, in 2017 at a cost of 30 million euros ($33 million).

    The Mioveni facility represents an investment of 10 million euros ($11 million). It will have 15 injection molding machines and a paint line, Boulet said.

    In Silao, 300 miles northwest of Mecaplast's existing Mexico plant in Puebla, the company has already installed four KraussMaffei injection molding machines, ranging in clamping force from 300-800 metric tons. Two additional KM presses, a 1,000 metric tons press and another of 600 metric tons, are scheduled to be delivered in January.

    Boulet said that Mecaplast has annual sales of about 750 million euros ($825 million). “I think we will go over the 1 billion euro mark before the end of 2018,” he said.

    Explaining Mecaplast's moves into North Africa, Eastern and Southern Europe and Mexico, Boulet said: “All OEMs are moving to lower-cost countries.” He added that “we will soon see new capacity in China.”

    Silao, he said, is at the very center of Mexico's booming automotive industry, “which is why we decided to put the [new] plant here.

    The air intake systems that Mecaplast will make for GM in Silao “are part of a global project,” according to Philippe Vayssettes, the company's America business unit director. Mecaplast also makes the systems in China.

    Roberto Cuellar Luna, Mecaplast's plant manager in Silao, said 18 people work at the plant currently. The number will increase to 92 by January, he said. Boulet said the plant's sales will be in the region of 20 million to 25 million euros in 2018. The number of injection molding presses in Silao “may go beyond 20,” he said.

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