Injection molder Viking Plastics is expanding its reach in North America through a cross-border manufacturing agreement with Isgo Manufacturing SA de CV, a custom injection molder and blow molder based in Monterrey, Mexico.
Terms of the legal agreement were not disclosed.
Isgo Manufacturing has multiple facilities in Mexico and an engineering office in Wixom, Mich. It molds a variety of Class A, safety/functional and structural components for the automotive industry as well as parts for the appliance, electronics, cosmetic and packaging markets.
The company ranks No. 117 on Plastics News' annual ranking of North American blow molders, with estimated sales of $28 million in 2017.
The cross-border agreement enables Viking Plastics and Isgo Manufacturing to easily serve mutual customers, primarily in automotive, in the geographical markets those customers want to do business in. It also allows both companies to avoid additional transportation and shipping costs as well as any potential tariffs between the border.
"We think it's a win-win for our customers, and we believe it's a win-win for our partnership because we'll be able to service our customers much better and hopefully grow our business because of it," Kelly Goodsel, president and CEO of Viking Plastics, said in a June 3 phone interview.
Viking Plastics is headquartered in Corry, Pa., and primarily serves the automotive, industrial, appliance and heating, ventilation and air conditioning markets. It molds various under-the-hood and interior automotive parts as well as plastic housings, covers, brackets and other custom products.
Customers include automakers such as Ford Motor Co., General Motors Co., Toyota Motor Corp., Fiat Chrysler Automobiles NV and Nissan Motor Co. Ltd. as well as Tier 1 suppliers.
The partnership allows the company to tap into Mexico's market without having to build a brick-and-mortar facility or invest in new machinery, Goodsel said. It also provides Viking Plastics with access to Isgo Manufacturing's large-tonnage injecting molding machines, which go up to 1,500 tons.