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Interior automotive parts supplier Plastivaloire is 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 moulder, 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 US in the continent among the largest producers of motor vehicles and seventh ranked worldwide. Meanwhile, its San Luis Potosí state is home to many of the world’s top motor manufacturers, Plastivaloire pointed out.
Audi has recently established an assembly plant in San Luis Potosí to join othersalready being operated by groups including Nissan, Chrysler, Ford, Fiat, General Motors and Volkswagen. They are set to be joined by other German groups 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 machines ranging from 25 – 2,700 tonnes 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% of its overall sales, but it also produces moulded 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% in the first quarter of the current year ending this September, reaching a record of more than €134m. Over the first half of 2015-16 Plastivaloire achieved turnover worth €285.3m, up 24.2%, partly reflecting recent acquisitions.